The ecommerce platform’s expanded operations in Abu Dhabi will further strengthen e-commerce as an emerging sub-sector within the emirate’s ICT sector, the firm said
Khalifa Economic Zones Abu Dhabi (KEZAD Group) and Noon have broken ground on what’s billed as the UAE’s largest fulfilment centre in Abu Dhabi. The move is said to be part of an anchor investment by the ecommerce major into Abu Dhabi’s growing e-commerce space.
The 252,000sqm fulfilment centre facility is being designed and developed by KEZAD Group under a Build-to-Suit agreement, and is scheduled for delivery in 2024. With the introduction of new automation technologies for storage, material movement, and sorting, the facility will enable rapid delivery of products to millions of noon customers throughout the UAE and will bolster the local economy with the creation of several thousand new jobs, KEZAD said.
“More than 5,000 small businesses will use our fulfillment center to store their goods and conduct business. This will allow our youth and small businesses to connect with the growing number of e-commerce customers without having to invest in technology or real estate,” said Mohamed Al Abbar, Founder of Noon.
In February 2022, the AD Ports Group partnered with Ghassan Aboud Group to launch the Regional Food Hub – Abu Dhabi.
The UAE’s e-commerce market has grown exponentially in recent years, with customers increasingly moving toward the variety, convenience, and price benefits of online shopping, KEZAD said.
With managing inventory efficiently and cost-effectively being critical to meeting the spike in online consumer demand, fulfilment centres not only offer scalable warehousing opportunities, but provide speed and quality control across the entire value chain, from order picking and processing to packaging and shipping, it explained.
Al Abbar continued, “I’m especially proud that this facility, built with our partners ADIO and KEZAD Group, will create thousands of jobs in Abu Dhabi and will accelerate the digital penetration of core sectors such as retail and logistics. This is not your typical real estate project—technology infrastructure projects of this scale are change agents for the future, not just for our company, but also for our community and country.”
In July 2022, Abu Dhabi launched a $2.72bn drive to expand its manufacturing sector to over $46bn.
While Noon already has a facility with KEZAD, the ecommerce major decided to expand its operations to a larger area by utilising KEZAD’s Build-to-Suit solution, which will facilitate the design and delivery of Noon’s turnkey facility.
Capt Mohamed Juma Al Shamisi, Managing Director and CEO of AD Ports Group commented, “Under the guidance of our wise leadership, AD Ports Group is committed to positioning Abu Dhabi as a global hub for trade through the development of an integrated and future-ready industrial ecosystem within KEZAD. The state-of-the-art noon fulfilment centre perfectly aligns with this mission and represents an important milestone in our collective journey to enable the rapid expansion of e-commerce and same-day delivery models in the region. The facility will bring significant economic benefits with the creation of thousands of jobs and will offer new opportunities for the private sector looking to reach customers across the Middle East, Africa, Asia, and Europe.”
According to KEZAD, the project will be tailor-made to meet Noon’s operational requirements, helping to reduce costs, boost productivity and offer essential supply chain efficiencies. Additionally, the completed facility will be a sustainable building conforming to Estidama 2 Pearl rating, which incorporates initiatives to enable water, energy and waste minimisation.
In September 2022, KIZAD inked a deal to establish Abu Dhabi’s first EV assembly facility.
By leveraging the development solution, Noon’s fulfilment centre will be delivered by KEZAD Group on a fast-track basis to the end users’ exact specifications. The approach is said to be a strong option for businesses seeking an asset light approach, while still retaining full control of their operations and standards.
The Abu Dhabi Investment Office (ADIO) is also providing Noon with financial and non-financial incentives as part of the continued expansion of Abu Dhabi’s ICT ecosystem.
Eng. Abdulla Abdul Aziz AlShamsi, Acting Director General, ADIO concluded, “Abu Dhabi’s e-commerce sector has taken another step forward with work commencing on the country’s largest fulfilment centre. ADIO congratulates noon and KEZAD Group on reaching this important milestone in rapid time and looks forward to working closely with our partners through the next phase of their growth and expansion.”
In November 2022, AJ Steel said it would grow its operations in Abu Dhabi with a 96,000sqm facility expansion.
The new facility will enable entrepreneurs, startups and SMEs to leverage Noon’s platform, advanced technology and expansive delivery networks to reach new customers. Noon will operate in line with Abu Dhabi’s e-commerce policy launched in August 2021 to unlock investment opportunities in the emirate, the firm noted.