Supply Chains Shift, Capital Follows: UAE Industrial Market Continues to Attract Investment
Dubai – September 28, 2026 – CBRE Middle East, the global leader in commercial real estate services, released its UAE Industrial and Logistics Review, highlighting the continued strength in occupier demand, major government-led infrastructure investments, and the rising importance of alternative trade corridors against the backdrop of sustained investor confidence, reinforcing the UAE’s position as the region’s leading logistics and distribution hub.
The UAE’s industrial market remains supported by strong structural fundamentals, including supply chain diversification, manufacturing localization initiatives, major transport infrastructure projects and a prevailing shortage of high-quality warehousing stock for lease. At the same time, the country has accelerated efforts to strengthen trade connectivity through expanded east coast port capacity, rail infrastructure and overland logistics corridors.
According to the report, disruptions to shipping routes through the Strait of Hormuz have accelerated the UAE’s transition towards a more diversified and flexible logistics network. Increased reliance on east coast gateways such as Fujairah and Khor Fakkan, together with the expansion of rail and road freight infrastructure, has strengthened the country’s long-term logistics capabilities and reduced dependence on traditional maritime routes.
Government-led initiatives have also played a pivotal role in supporting the sector. Measures including customs relief programs, SME support packages, domestic manufacturing incentives and strategic investments into logistics infrastructure have helped maintain trade flows while improving operational efficiency across supply chains.
Investor appetite for the sector has remained robust throughout the year, underlined by a series of high-profile industrial and logistics deals across Abu Dhabi and Dubai. This includes AED 48.5 billion of industrial investments that were announced during “Make it in the Emirates 2026,” alongside major logistics and warehousing developments across KEZAD, Jafza and National Industries Park.
In Abu Dhabi, average industrial rental rates increased by 6.0% year-on-year during Q3 2026, supported by sustained demand and constrained supply. Leasing activity remained particularly strong within KEZAD and ICAD, where occupiers continued to compete for limited quality stock. The market has also benefited from growing foreign direct investment and ongoing industrial expansion programs.
Dubai recorded even stronger performance, with average industrial rental rates rising by 12.3% year-on-year. Areas such as Dubai Investments Park, Dubai Industrial City, National Industries Park and Dubai South all witnessed notable rental growth as occupiers sought strategically located warehousing and distribution facilities. Limited availability of Grade A space has continued to support landlord pricing power across the emirate’s core logistics hubs.
Matthew Green, Head of Research at CBRE MENA comments: “The past year has underscored the strategic importance of the UAE’s industrial and logistics sector. While regional disruptions have created operational challenges for many businesses, they have also accelerated investments, effectively reshaping the country’s logistics landscape. From expanded port and rail infrastructure to new manufacturing capacity and logistics developments, we are seeing long-term structural shifts that continue to strengthen the UAE’s position as a leading trade, distribution and industrial hub.”
” Many of the investments we are seeing today extend well beyond the current geopolitical environment and reflect the long-term confidence in the UAE. As infrastructure capacity expands and supply chains continue to evolve, the market remains well positioned to benefit from the next phase of economic growth and diversification.”
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About CBRE in the MENA region:
CBRE Group, the world’s largest commercial real estate services and investment firm, has been serving clients in the Middle East region for over twenty years. The company has over 1,400 professionals* in the Middle East operating out of nine offices in six countries in the region. Working alongside investors, financers and occupiers, our specialists provide a fully integrated suite of services, including facilities, transaction, and project management; cost management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.