Majid Al Futtaim (Maf) will use Dubai as a distribution epicentre for its Carrefour hypermarket chain as it looks to expand to meet rising demand across the Middle East, Africa and Central Asia.
The retailer announced yesterday that it would open a new logistics facility at the National Industries Park (NIP), owned by DP World, covering more than 800,000 square feet, or nearly the size of London’s Buckingham Palace.
Miguel Povedano, executive regional director of Carrefour UAE, said that the distribution centre would significantly expand operational capabilities throughout the region. “We continue to look at the Middle East and North Africa as one of the key growth regions for Carrefour and one that we will continue to invest in over the coming years,” he said.
The UAE will be the hub for operations for the major supermarket retailer as Maf looks to expand Carrefour into new territories, including adding Kenya and Kazakhstan last year.
The Dubai facility will have multi-temperature storage to help meet the varying needs for produce, meat and dry foods as well as warehousing for non-edible items. The distribution centre will have over 400 million units of storage capacity, which will help to manage more than 150,000 orders each day for both in-store and online sales, Maf said.
According to Fitch’s BMI Research, the UAE plays a key role in the global supply chain as it serves as a major hub for international trade routes between Europe and Asia. Additionally, the economic benefits of free zones as well as low energy prices have placed the UAE as the most developed logistics network in the Mena region.
The location of NIP, between Jebel Ali Port and Al Maktoum airport, will help MAF reduce transportation time.
Maf said that the Dubai facility would bring savings of over 50 per cent on energy used per cubic metre. “In addition to being our largest distribution centre in the region, the facility at NIP is also highly energy efficient and will help us become more environmentally friendly, while reducing the overall carbon footprint of our stores,” said Younis Al Mulla, Maf Retail senior vice president of development and government affairs.
lgraves@thenational.ae
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