The UAE’s industrial and logistics sector is entering a new phase of accelerated growth, defined by strong occupier demand, investor confidence, and expanding infrastructure.
According to Cushman & Wakefield Core’s UAE Logistics & Industrial Market Update 2025/2026, Grade A occupancy now averages 95%, with rents rising 18% in Dubai and 13% in Abu Dhabi over the past year. Despite new supply in the pipeline, most upcoming projects are already pre-leased, underscoring the depth of market demand and the UAE’s position as a resilient, globally connected logistics hub.
In Dubai, institutional developers are leading activity with more than 7 million sqft of new stock under development across Al Warsan, National Industries Park, and Dubai South. Demand remains strongest for mid-sized facilities between 10,000 and 50,000 sqft as occupiers seek flexibility and speed to market.
In Abu Dhabi, strategic government incentives and improved multimodal connectivity continue to attract global occupiers. Zones such as KEZAD, ADAFZ, and Musaffah are expanding capacity, with KEZAD achieving 98% occupancy and a 35% increase in warehouse leasing activity supported by its direct links to Khalifa Port and Etihad Rail.
Across the Emirates, occupiers are adapting to a tight market, whether by absorbing higher rents in prime hubs, relocating to the Northern Emirates for affordability, or commissioning build-to-suit facilities for long-term control. Institutional capital, logistics infrastructure, and sustained occupier confidence are driving the sector’s next growth cycle, solidifying the UAE’s role as the region’s leading industrial and logistics hub.
