By Omar Al Kurdi | Managing Partner, Osoul Properties | Author of Real Estate: The New World Order
Dubai’s Industrial Real Estate: From Supporting Role to Strategic Backbone
The global economy continues to operate under the weight of geopolitical tension, fragmented supply chains, and capital uncertainty. In contrast, the UAE—and Dubai in particular—has distinguished itself through clarity of vision, policy consistency, and long-term planning. Nowhere is this more evident than in the industrial, logistics, and workforce accommodation sectors.
Industrial real estate in Dubai has evolved well beyond its traditional supporting role. Today, it stands as a strategic pillar underpinning trade, population growth, and economic resilience. Demand is no longer speculative; it is operational, structural, and closely linked to how the city functions on a daily basis.
Manufacturing, logistics, construction, and last-mile delivery operators continue to drive occupier demand, placing sustained pressure on a market constrained by limited land availability and aging stock. Modern, well-located facilities are increasingly scarce, pushing rents higher and reinforcing the long-term value of institutional-grade assets.
Infrastructure remains the sector’s strongest catalyst. The activation of Etihad Rail is reshaping industrial location strategies by enhancing inter-emirate connectivity and improving supply-chain efficiency. At the same time, ongoing expansion of ports and logistics corridors continues to strengthen the UAE’s position as a regional and global trade gateway.
Looking ahead, the planned transition of Dubai’s primary airport operations to Al Maktoum International in Dubai South represents a defining moment for the industrial landscape. While transformational for the wider economy, it will further compress available industrial land, intensifying competition for strategically located sites and accelerating rental growth across established hubs.
Occupier behaviour is also evolving. Businesses are consolidating into larger, more efficient facilities while simultaneously seeking urban logistics assets that support speed, proximity, and flexibility. This dual demand is driving the redevelopment of older industrial districts and pushing traditional users toward peripheral and emerging locations.
The Dubai Urban Master Plan 2040 provides additional structural support. Population growth, advanced manufacturing, and sustainability sit at the core of the city’s long-term vision. Industrial and logistics assets are no longer defined purely by storage and distribution; they are becoming enablers of innovation, technology, and ESG-aligned growth.
Workforce Accommodation Enters the Institutional Mainstream
Workforce accommodation sits firmly within this evolving industrial ecosystem. Purpose-built, compliant labour facilities are essential to sustaining construction, manufacturing, and logistics activity. As expectations around quality, scale, and operational efficiency rise, this segment is increasingly viewed as a defensive, income-generating asset class rather than a purely functional necessity.
This shift was clearly demonstrated in 2025 with the successful closing of the largest labour camp transaction ever completed in Dubai, located in Jebel Ali. The transaction, concluded at a reset value exceeding AED 400 million, involved a large-scale, institutional-grade development capable of accommodating more than 10,000 workers.
OSOUL advised and facilitated the transaction on behalf of a Bahrain-based financial institution, guiding the successful exit of the asset, which was ultimately acquired by a Dubai government-backed developer. While the parties remain undisclosed, the scale, pricing, and strategic nature of the transaction reflect a growing institutional appetite for workforce accommodation assets that offer stability, compliance, and long-term income visibility.
The deal now stands as a benchmark for the sector, reinforcing the depth of capital, transparency, and market maturity within Dubai’s industrial and workforce accommodation landscape.
A Call to Investors and Policymakers
For investors, the message is clear: industrial, logistics, and workforce accommodation real estate in Dubai is no longer an opportunistic trade—it is a long-term strategic allocation. Assets that offer scale, connectivity, sustainability, and operational relevance are positioned to outperform across market cycles.
For policymakers and planners, the challenge lies in balancing growth with supply. Land availability, zoning flexibility, and infrastructure alignment will be critical to ensuring that Dubai’s industrial engine continues to support the city’s broader economic ambitions. Encouraging redevelopment, vertical solutions, and sustainable design will be key to unlocking the next phase of growth.
Dubai’s industrial sector is not simply expanding; it is maturing. Those who recognise this evolution early will play a defining role in shaping—and benefiting from—the city’s next economic chapter.
About Author
Omar Al Kurdi is the Founder and Managing Partner of Osoul Properties and the author of Real Estate: The New World Order. He holds an Executive MBA and is a Certified Public Accountant (CPA), Project Management Professional (PMP), and a member of the Royal Institution of Chartered Surveyors (RICS). Omar has close to 15 years of experience across real estate investment, development, and advisory. He is also a course and content contributor at the Dubai Real Estate Institute.
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