Oil, gas sector fuels demand for industrial space in Dubai – Savills

Oil, gas sector fuels demand for industrial space in Dubai – Savills

UAE - Mubasher: Dubai’s industrial and warehousing sector continued to remain buoyant with solid demand levels and steady leasing activity on various sectors.

The oil & gas sector led demand, followed by e-commerce, contract logistics, and indoor farm operators, according to Savills Dubai Industrial H1 2022 Market in Minutes Report.

“The recent spike in oil prices and subsequent revenue gains have resulted in increased investments and capacity expansion by engineering and other oil & gas support services companies,” said Associate Director - Research, Savills Middle East, Swapnil Pillai.

Ecommerce operators have further expanded their operations as they continue to gain market share of Dubai's overall retail sector. In the first half (H1) of 2022, their real estate footprint significantly expanded in the form of ‘Dark Stores’.

The growth in the number of vertical farm operators due to higher demand from consumers for local produce and less reliance on foreign food imports was another demand driver.

Demand during H1-22 was primarily concentrated across traditional hotspots such as Dubai South, JAFZA, National Industries Park (NIP), and Dubai Investments Park (DIP).

Commercial Agent at Savills Middle East, Luke Tipp, commented, “Going forward, end-user demand is likely to remain strong for logistics assets offering temperature-controlled spaces as well as offering