Dubai-“UAE is moving on with its strategic plan to diversify the national economy away from a dependence on oil. It has its unique economic vision that enables the creation of new economic sectors to contribute to the nation’s growth even while upgrading existing sectors to ensure they are equivalent with highest global standards,” HH Ruler of Dubai Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE stated during the official launch of Dubai Wholesale City on Tuesday.

The new city is the largest global wholesale hub, set to span over 550 million sqft with an expected development cost of Dh30 billion over ten years.

The new development aims to increase UAE’s share in the global wholesale trade sector, which is valued at $4.3 trillion and expected to grow to $4.9 trillion in the next five years.

The new global hub comprises specialized integrated trading parks that meet all the requirements of wholesale traders under one roof, in addition to an international trade exhibition facility.

Given Dubai Wholesale City’s proximity to Al Maktoum International Airport and Jebel Ali Port, the development creates a crucial and logistic link among four main continents and aims to be a home for more than 15,000 wholesale traders.

Dubai Wholesale City will also feature “Country Pavilions,” which will include commercial centers and malls offering products from various countries including India, Malaysia, Thailand, Turkey, Australia, China, South Korea, Germany, Saudi Arabia, the United States and South America.

Moreover, the new project will revolutionize the global wholesale trade through its utilization of integrated smart services, an advanced framework and the world’s best logistics support.

The City will launch operations by servicing strategic sectors and will include specialized avenues (boulevards) for food, construction materials, electrical appliances, electronics, furniture and decor, machinery, equipment, wood, vehicles and spare parts, and textiles and clothing.

Dubai Wholesale City will also activate the world’s largest e-commerce platform for wholesale trade in the region. The new service aims at enhancing UAE’s capabilities in the global e-commerce space that is set to grow from $1.672 trillion to reach $2.941 trillion in 2018, with a compound annual growth rate of 21%.

It is noteworthy that UAE’s e-commerce market growth rate is expected to be double compared to the global growth rate in e-commerce.

According to market speculations, it will surge up to four times its current size through the next three years; to rise from a value of US$2.5 billion in 2015 to US$10 billion in 2018, a compound annual growth rate of 59%.

During the launching ceremony, HH Sheikh Mohammed reiterated the role of trade in the nation’s prosperity and said that it was a key contributor to maintaining UAE’s economic success, as well as a crucial sector in its future development.

“UAE’s strategic location, world-class infrastructure, and strong institutions make it the most qualified place to lead the new wave of growth in wholesale trade, on an international scale”, he added.

Sheikh Mohammed concluded, “Our aim is to build a sustainable national economy. Dependency on oil was never a choice and we will not bind our future to it.”

The strategic project is a fully-integrated trading hub that aims to meet the needs of the local and international wholesale trading sector. The destination is projected to emerge as the world’s leading wholesale trading hub and strengthen UAE’s position as a pivotal market in global trade.

Wholesale trade is among the most important economic sectors today with huge growth prospects. Global trade is projected to grow by 12% to US$4.9 trillion in 2019.

The hub will serve as an international trade exhibition facility and provide wholesale traders with comprehensive offerings, including state-of-the-art infrastructure, roads, warehousing, storage facilities and support services; thus guaranteeing high operational efficiency and ease of doing business.

For its part, the international business-to-business exhibition facility will convene buyers with suppliers from around the world. The sizeable asset will serve as a mediator in global trade and open up a raft of service options to producers and traders while saving them time and effort.

Dubai Holding will be developing the new “City”. Mohammed Al-Gergawi, Chairman of Dubai Holding, said: “the new Dubai Wholesale City complements the series of projects in the Emirate that articulate the unique vision of Sheikh Mohammed bin Rashid towards launching integrated cities, which serve diverse economic sectors.

These include, amongst others, the Dubai Internet City and Dubai Media City that collectively host more than 5,200 companies and over 67,000 professionals across multiple industry verticals.”

He added, “Dubai Holding is committed to supporting the vision of UAE’s wise leadership in achieving sustainable development. Dubai Wholesale City is among several projects that we have conceptualized as part of our priority to help achieve UAE’s post-oil vision. Launching Dubai Wholesale City comes as a result of intensive discussions and meticulous studies of the wholesale sector and the plethora of opportunities it offers. We are confident this project will have immense positive impact on wholesale trade in the UAE, the Gulf region and the rest of the world.”

The project in its first phase will service a number of key sectors in an eco-friendly environment adhering to the highest quality standards of energy conservation, waste management and industrial hygiene. The city will deploy the latest

technology and range of smart city features to make trade operations seamless and efficient.

While boosting the wholesale trade sector, the new city is projected to translate a positive spillover impact on other sectors linked to trade such as logistics, financial services, aviation, hospitality and business tourism.

Spanning an area of over 550 million square feet, Dubai Wholesale City will aim to grow as a global wholesale hub and the region’s primary one-stop-shop for a wide range of integrated wholesale products and solutions. The new destination will utilize its comprehensive offerings, advanced purpose-built infrastructure and support services to attract local, regional and international wholesale traders.