Talal Group breaks ground on AED150 million Central Distribution Centre at Dubai Industrial City, the company said in a statement issued through the Emirates News Agency on Tuesday. The facility is designed to consolidate warehousing, distribution and inventory management functions under one roof, supporting the group’s diversified operations across retail and consumer goods. A company assessment found the project will incorporate automated systems to streamline order fulfillment and reduce delivery times across the GCC. Industry observers noted that such investments reflect growing demand for modern infrastructure in a market where e-commerce volumes have risen steadily.
The AED 150 million investment underscores Talal Group’s commitment to scaling its footprint in one of the region’s premier industrial zones, Dubai Industrial City. According to Dubai Industrial City data, the area hosts more than 4,000 companies and continues to draw logistics operators seeking proximity to ports and airports. The new centre is projected to span approximately 200,000 square feet upon completion, creating several hundred direct and indirect jobs during construction and operations. Company executives stated that the site will also include dedicated cold-storage zones to handle perishable goods.
A Mordor Intelligence sector outlook projected the UAE third-party logistics market to expand at a compound annual growth rate of 11.2 percent through 2030, driven by trade diversification and digital commerce. The Talal Group project fits within that trajectory by adding purpose-built capacity that can serve both domestic retailers and cross-border shipments. In the announcement, the company highlighted how the centre will leverage Dubai’s established transport networks to reach markets in the Middle East, Africa and South Asia. Officials added that sustainability features, including solar panels and water-recycling systems, will be integrated from the outset.
Construction is scheduled to conclude in late 2028, with phased operational rollout beginning the following year, the company said in the statement. The development arrives as Dubai Industrial City reports occupancy rates above 85 percent for logistics plots, according to authority figures. Talal Group, a diversified conglomerate with interests in trading, manufacturing and real estate, views the facility as central to its five-year growth plan. Senior management told local media that the investment will enhance resilience against supply-chain disruptions experienced during the past global health crisis.
PwC Middle East analysis of GCC infrastructure spending placed logistics projects among the fastest-growing categories, with private-sector participation rising 18 percent year-on-year in 2025. The Talal Group centre is expected to align with those trends by offering third-party logistics services once fully commissioned. The statement noted that the facility will meet international standards for food safety and hazardous materials handling. Industry benchmarks cited in the release indicate that modern distribution centres of this scale can improve inventory turnover by up to 25 percent.
