Revolutionizing Warehouse Leasing in the UAE
Dubai Customs is excited to announce the launch of an innovative digital platform, likened to the ‘Airbnb of warehouses.’ Unveiled at Gitex Global 2024, this platform is designed to streamline the registration and leasing process for various warehouse types, from dry storage to climate-controlled facilities, all through a centralized digital interface.
Centralized System for Warehouse Leasing
The new Warehouse Platform simplifies the process for owners to list their available properties. Potential tenants can explore diverse options based on size, location, type, and lease duration, saving time and effort in finding the ideal storage solutions.
Responding to High Demand
As demand for warehouse space in Dubai currently exceeds supply, this platform arrives at a crucial time. According to a December 2023 Knight Frank report, only 1.56 million square feet of warehouse space is under construction, while 9.9 million square feet of new requirements were recorded in the first nine months of 2023. Many businesses are now leasing secondary stock, resulting in significant rental rate increases, with Grade B rates in Jebel Ali Industrial rising by 38.5% in the past year.
Blockchain-Enabled Leasing and Optional Listings
Warehouse owners—managing both bonded and non-bonded facilities inside or outside free zones—can list their properties for a nominal fee (details to be announced). Utilizing blockchain technology, owners can securely set their own leasing rates. Listing is optional, and owners can enhance their listings with photos and content, subject to approval by Dubai Customs.
An official at Gitex Global remarked, “If you have unused space in your warehouse, you can lease it through this platform,” though specific property requirements must be met for approval.
Special Feature: Bonded Warehouses
The platform also includes bonded warehouses—customs-approved storage spaces allowing businesses to store goods without paying customs duties for up to three years. This feature streamlines customs clearance and reduces costs. “Storing goods in a bonded warehouse functions like a mini-free zone,” the official explained. A deposit is required, and if goods are sold locally, duties are paid. If re-exported, the deposit is refunded.
Conclusion
With this groundbreaking platform, Dubai Customs is set to attract a diverse range of warehouse owners, offering a convenient and secure method to lease their properties and meet the growing demand for storage solutions in the UAE.
