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FINANCIAL NEWS
IKEA to open a distribution center in Dubai’s DWC
22 Oct 2014
(MENAFN) IKEA, the Swedish furniture company, announced it is planning to set up its largest distribution center in the Middle East at the Dubai World Central’s (DWC) logistics district, Gulf Business reported.
The distribution center is set to be IKEA Group’s first direct investment in the region with an expected date of September 2015 to be completed, with the unit initially employing 230 people and having the capacity to handle 50.000 twenty-foot equivalent containers (TEUs) per year, which will increase to up to 70.000 TEUs per year within three years.
IKEA said that the new distribution center in DWC will enable them to deliver fast-moving products more efficiently to stores across the GCC, which will help them cut distribution costs and shipment times.
IKEA, which has a store each in Dubai Festival City and in Yas Mall in Abu Dhabi, also has outlets in the Saudi Arabian cities of Riyadh, Jeddah and Dhahran as well as other GCC countries and more recently in Jordan.
“It is only fitting that a venture of such significance and proportion happens in DWC. We are more than a gateway to the MENASA region. Being selected as the future logistics platform for global companies such as IKEA and partnering with experienced developers such as GRDI is how we plan to step into the future” COO of DWC said upon the announcement.
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