UAE-based Kezad Group has commenced the construction of the UAE’s largest e-commerce fulfilment centre for the platform noon.com, which will be completed by 2024.
The move is hoped to create 6,000 jobs and support the UAE digital economy programme.
The fulfilment centre in Abu Dhabi will form part of an anchor investment by Noon in the emirate’s fast-growing e-commerce ecosystem.
The fully-automated facility for storage, material movement and sorting seeks quickly deliver products to millions of customers in the UAE as well as boost employment in the country, the statement said.
Founder of noon.com, Mohamed Alabbar, said: “More than 5,000 small businesses will use our fulfilment centre to store their goods and conduct business. This will allow our youth and small businesses to connect with the growing number of e-commerce customers without having to invest in technology or real estate.
“This is not your typical real estate project — technology infrastructure projects of this scale are change agents for the future, not just for our company, but also for our community and country.”
Similarly, the company vows to aid core sectors such as retail to accelerate and streamline their online operations.
According to Euromonitor International, the UAE provides staggering opportunities for e-commerce companies. The sector in the country is projected to grow to more than $8 billion by 2025, as consumers across the region continue to shift towards online retail.
Noon.com, launched in December 2017, was the third biggest e-commerce player in the UAE last year, with net sales amounting to around $169 million, as per data from ecommerceDB e-commerce Insights.
Managing director and group CEO of AD Ports, Mohamed Al Shamisi, said: “The facility will bring significant economic benefits with the creation of thousands of jobs and will offer new opportunities for the private sector looking to reach customers across the Middle East, Africa, Asia and Europe.”
The facility “represents an important milestone in our collective journey to enable the rapid expansion of e-commerce and same-day delivery models in the region”, Mr Al Shamisi added.
Fulfilment centres remain crucial to the operations of e-commerce companies. Unlike ordinary warehouses that simply store products to be distributed at a later time, fulfilment centres temporarily hold items that are meant to be packed and delivered to customers faster.
The global e-commerce fulfilment services market is projected to grow at a compound annual rate of 9.5 per cent to hit about $195 billion by 2030, from $86.4 billion in 2021, according to Grand View Research.
The Abu Dhabi Investment Office is providing Noon with financial and non-financial incentives to tap into Abu Dhabi’s ever-flourishing e-commerce landscape
“Abu Dhabi’s e-commerce sector has taken another step forward with work commencing on the country’s largest fulfilment centre,” said the director general of Adio, Abdulla Al Shamsi.
