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Why Demand for Warehousing and Logistic Space is Booming in the Middle East

The Middle East is experiencing unprecedented growth in demand for warehouse space. A  The numbers of Business Parks and Industrial Centres are increasing across the region. A So what is driving the demand and need for increased warehousing and logistic spaces in the Middle East? There are 5 key factors are creating this growth in demand.

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  1. Population Growth

The Middle East is seeing huge increases year on year in its population due to high birth rates and high numbers of immigrants. United Arab Emirates, Qatar and Bahrain had the highest increases by percentage in population in the region over the last 20 years. This, in turn, is driving the economy forward, increasing the demand for products.

United Arab Emirates has now a huge number of expatriates living and working in Dubai and its commercial centres, all are requiring accommodation, food and products for general life. When this is put into context it’s not just a baby boom that is happening in the Middle East it is also an influx of immigrants.

  1. Increases in Consumer Spending

High levels of tourism, manufacturing and construction add to increased incomes for those employed in the region. Meaning the general population has more money to spend and thus demand more products. When this is considered alongside the general population growth it demonstrates just how much the Middle East region is booming.

  1. Increased Manufacturing

Increased local manufacturing brings huge benefits to the region. As demand for materials increases as does local employment. United Arab Emirates particularly is investing in local production and manufacturing which in turn creates more jobs and more wealth for the population.

  1. Location

The Middle East is a strategic location, nestled between Africa, Asia, Europe and Russia this is benefiting the region as it can source materials from a large area and it can deliver equally to a wide area.  The Middle East has long been on the path of the Silk Road from Asia to Europe and now its location is helping to drive growth in its business and enterprises.

  1. Investment in Infrastructure

United Arab Emirates, Qatar, Saudi Arabia and Kuwait have been investing heavily in its infrastructure which is enabling quicker transportation of goods. This investment also drives the economy forward with job creation and the requirements for building materials.

All the above factors outline the reasons why more space is required for storage of materials, products and goods. The whole of the Middle East is seeing increased population rates which are leading the demand across the region. Whilst the economy of the Gulf States, in particular, has been booming for some time it seems that there is no stopping it just yet.


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