The UAE’s industrial and logistics sector is recording some of its strongest growth figures in years, driven by an expanding economy, ambitious national programmes, and infrastructure investment that is reshaping the country’s trade and supply chain landscape.
A 2026 outlook report from JLL shows the country strengthening its position as a global trade and logistics hub, underpinned by record population growth, surging foreign trade, and rapid technological transformation.
Policy Frameworks Driving Industrial Expansion
At the heart of the sector’s momentum is a coordinated push across federal and emirate-level strategies. Operation 300bn, led by the Ministry of Industry and Advanced Technology, aims to double the industrial sector’s GDP contribution from Dh133 billion in 2021 to Dh300 billion by 2031. Abu Dhabi’s Dh10 billion Industrial Strategy 2031, in parallel, targets doubling manufacturing output to Dh172 billion and creating 13,600 specialised jobs.
Economic Indicators Reinforce the Outlook
The UAE’s GDP reached Dh1.8 trillion in 2024 and is projected to climb to Dh2.1 trillion by 2028, with 2026 expected to mark the fastest growth rate at 5.1 per cent. Non-oil sectors now account for 75.5 per cent of GDP, reflecting deepening diversification.
Demand Outpacing Supply
Grade A occupancy now averages 95 per cent, with rents rising 18 per cent in Dubai and 13 per cent 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.
Infrastructure as a Competitive Advantage
The Etihad Rail completion, Al Maktoum International Airport expansion, and Khalifa Port connectivity are set to reshape multimodal logistics across the UAE and GCC, further solidifying the country’s role as the region’s leading trade gateway.
With technology adoption accelerating and institutional capital flowing into the sector, the UAE’s industrial and logistics market is on course for a sustained period of structural growth well into the decade ahead.
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