Logistics

Massive investment in cold storage needed in UAE

February 21, 2025, 12:46 PM

More cold storage will be central in helping the UAE meet its domestic food production goals

Extra 125,000 sq m of cold storage required
Existing storage not purpose built
Important for food security

The UAE is racing to meet a substantial shortfall in cold storage space that will be essential if the country’s food security goals are to be met, real estate analysts say.

At least 125,000 square metres of additional space are needed to bring the country up to the required capacity, according to Harish Rajagopalan, director of strategic advisory at CBRE Mena.

“The existing inventory is only retrofitted space. We don’t have the purpose-built space available,” he said.

Cold storage facilities play a major role in ensuring the availability of perishable goods, particularly fruit and vegetables.

The six GCC states import around 80 percent of their food needs, and a main objective of the UAE National Food Security Strategy 2051 is to achieve 50 percent domestic production by that year.

Rajagopalan said returns to investors on temperature-controlled facilities could be as much as 5 percent higher than traditional warehouses, although he conceded the costs can double.

A further 80,000 sq m of cold storage is needed annually in the UAE to satisfy ongoing demand, Rajagopalan said.

Major cold storage areas in Dubai include Ras Al Khor and Al Aweer, home to the Dubai Municipality Cold Stores project, made up of more than 447,000 sq m of warehouses.

In Abu Dhabi, most facilities are in industrial areas around Musaffah and in Khalifa Economic Zone Abu Dhabi (Kezad), which is in the process of developing a $90 million food and automotive hub.

Maher Aboud, group CEO of the Ghassan Aboud Group conglomerate, told AGBI: “With the UAE’s food production and imports continuing to expand, the need for fast-moving consumer goods warehousing and distribution facilities continues to grow.”