Dubai Customs is set to launch a cutting-edge digital platform designed to streamline the warehouse leasing process across the UAE. This platform, dubbed the ‘Airbnb of warehouses’, was showcased at Gitex Global 2024 and promises to provide warehouse owners with a one-stop solution for listing their properties for rent.
Centralized System for Warehouse Leasing
The new Warehouse Platform will simplify the registration and leasing process for various types of warehouses, from dry storage to air-conditioned facilities, through a centralized digital system. Owners can easily list their available properties, giving potential tenants a variety of options to choose from based on size, location, type, and lease duration. This streamlined approach is set to save users time and effort in their search for suitable storage spaces.
High Demand for Warehouses in Dubai
The launch of this platform comes at a critical time when the demand for warehouse space in Dubai is surpassing supply. According to a December 2023 report by real estate consultancy Knight Frank, Dubai’s industrial market had only 1.56 million square feet of under-construction warehouse space. Meanwhile, 9.9 million square feet of new requirements were recorded in the first nine months of 2023.
Due to this shortage, many occupiers are resorting to leasing secondary stock, and rental rates in Dubai’s industrial and logistics sectors have seen significant growth. For instance, Jebel Ali Industrial saw Grade B rental rates increase by 38.5% in the past year.
Blockchain-Enabled Leasing and Optional Listing
Owners of bonded and non-bonded warehouses, both inside and outside free zones, will be able to list their properties on the platform for a fee, which will be announced soon. Using blockchain technology, warehouse owners can securely set their own leasing rates. Listing on the platform is optional, and owners can upload photos and other content to facilitate their listings, subject to approval by Dubai Customs.
“If you have unused space in your warehouse, you can lease it through this platform,” an official at Gitex Global explained. Warehouse owners will need to meet certain requirements to get their properties approved for listing.
Bonded Warehouses: A Special Feature
The platform will also feature bonded warehouses, which are customs-approved storage spaces where goods can be kept under suspended customs duties. This option allows businesses to expedite customs clearance procedures and reduce costs. Bonded warehouses are subject to customs inspection, and goods can remain in these facilities for up to three years without paying duties.
“If you store goods in a bonded warehouse, it functions like a mini-free zone,” the official added. “A deposit is collected, and if the goods are sold in the local market, duties are paid. However, if the goods are re-exported, the deposit is refunded.”
This new platform by Dubai Customs is expected to attract a wide range of warehouse owners, providing a convenient and secure way to lease their properties and meet the growing demand for storage solutions in the UAE.
