Business Bureau, Gulf Today

As online retail shopping booms globally and domestically, and consumer confidence rises ahead of Expo 2020, the demand for storage spaces and fulfilment centers is also increasing. This trend, according to the CEO of Lootah Real Estate Development Saleh Abdullah Lootah, is translating to a higher interest for warehouses and other cost-effective logistic solutions particularly from the Chinese investors.

China is Dubai’s largest trading partner, contributing Dhs71 billion of trade in the first half of 2019-a 4 per cent increases compared to the same period in 2018. Senaeyat, the UAE’s first lease-to-own warehouse concept, has been seeing the positive impact of this growing bilateral trade.

“The warehousing industry offers a huge potential for businesses to effectively expand their reach and save on their rental expenses,” Lootah said. “Senaeyat continues to receive a great number of inquiries from Chinese investors looking to set-up more businesses in Dubai. We have been receiving a significant number leads, which have been converted to successful meetings and actual deals. Lootah has been serving Chinese businesses for a long time, and with the increase of e-commerce, we expect businesses from China to grow further in the region.”

Senaeyat allows businesses the ability to own warehouses after a period of only 10 years. It was introduced as the demand for warehouses and high-quality storage spaces continues to rise in the UAE.

Through Senaeyat’s lease-to-own turnkey and strategically located properties, rental expense becomes a property asset that appreciates over time. Its warehouses are also offered in various sizes and a range of specifications at competitive prices.

The CEO further added that the rising demand for warehouses from the Chinese businesses is rooted from the strengthening trade and diplomatic relations between China and the UAE. Their strong ties have resulted in Chinese business and trade growth in the country-especially in Dubai. According to WAM, the trade between the UAE and Dubai has grown by 81 per cent over 10 years, which is around $37.84 billion (Dhs138.9 billion) in 2018 to $20.9 billion (Dhs77 billion) in 2009. There are now 876 Chinese companies registered in Dubai Customs, 623 of which are companies with trade licenses, 244 with free zone licenses, and 9 with professional licenses.

The bilateral trade between the UAE and China in the first quarter of 2019 has increased as well by 11.3 per cent as compared to the same period last year, amounting to $19 billion (Dhs69.7 billion). As per the reports, the volume of non-oil trade between UAE and China is also expected to reach $70 billion (Dhs257 billion) by 2020.

The strengthening relation between the UAE and China has also resulted in a remarkable growth in the tourism, businesses, population apart from trade.

A large number of Chinese business owners are now investing in Dubai’s real estate market following implementation of the Belt and Road Initiative and other developments, according to a property consultancy firm Coldwell Banker UAE.

As for the Chinese population in the UAE, the number of expats living in Dubai has also amplified by 53 per cent over the past five years, with 30,000 Chinese citizens and over 4,200 Chinese companies operating in the country.

China also contributes greatly to Dubai’s tourism, being the emirate’s fourth-biggest market for tourists in the first half of 2019. According to figures released by Dubai Tourism, the emirate has welcomed 501,000 overnight visitors from China. Since inception, Lootah Real Estate Development has acted as the pioneering real estate development arm of Lootah Holding. Through a culture of excellence and an unswerving commitment to provide the very highest standards of living, Lootah has not only achieved, but exceeded, the most ambitious goals. Already over 1,000 units have been delivered to satisfied occupants, with many more planned for the future.

Lootah Real Estate Development has positioned itself as the leaders in innovation in the real estate development sector, and accordingly became the lifestyle developer of choice within the region recognised for creating modern communities.

Lootah properties are all conveniently located in accessible areas across the city and offer everything from studios to one & two-bedroom apartments and of course townhouses making sure that they cater to all segments whether individuals, young couple or larger families.

Sustainable construction remains a top priority for Lootah, whether through using sustainable materials or the proper management of waste, sealants and coatings the company ensures all its properties are built according the highest standards of quality and sustainability.