Complex Made Simple

Dubai World Central to house IKEA’s largest regional distribution centre

Facility to be located within DWC's Logistics District

Dubai World Central (DWC) has gained a significant boost in its bid to become the region’s major logistics hub by agreeing to accommodate IKEA’s regional distribution centre.

In a statement to the press, COO of DWC, Rashid Bu’qaraa, says: “It is only fitting that a venture of such significance and proportion happens in DWC. We are more than a gateway to the Menasa region. Being selected as the future logistics platform for global companies, such as IKEA, and partnering with experienced developers, such as GRDI, are how we plan to step into the future.”

DWC, located just south of the Port of Jebel Ali, which is considered the largest trade hub in the Middle East, will accommodate Dubai’s Expo 2020 in its exhibition district.

Moreover, it is also home to Al Maktoum airport, which, if built according to plan, will be the biggest airport in the world, with an annual cargo capacity of 12 million tonnes.

The IKEA distribution centre will be located within DWC’s Logistics District, which is already home to key operators such as Aramex, Kuehne + Nagel and Panalpina.

In what will be the Swedish furniture manufacturer’s first direct investment in the Mena region, the unit will employ 230 people, while handling up to 50,000 twenty-foot equivalent containers (TEU) annually. Within three years, the distribution centre will aim to increase its capacity to handle 70,000 TEU’s per year.

IKEA, whose outlets in the region are franchised by Al Futtaim Retail, currently has stores in Dubai’s Festival City, Abu Dhabi’s Yas Island, Jeddah, Riyadh and Dhahran in Saudi Arabia, as well as a presence in Qatar and Kuwait. As such, the new distribution centre will facilitate more time- and cost-efficient logistic operations across the GCC, says a company official.