Prime Day

Before Prime Day, Amazon Opens in Abu Dhabi’s Largest Delivery Hub

As part of its expansion, online retail giant Amazon has opened a massive fulfilment centre in Abu Dhabi.

The 4,700 square metre facility is the company’s second-largest in the UAE, and it serves Abu Dhabi consumers with next-day and same-day delivery options.

And it all happens before Amazon’s annual mega-sale event for Prime members next month, the Seattle-based business said on Thursday.

Amazon claims the hub, which will generate hundreds of new jobs, will influence the direction of retail in the United Arab Emirates.

The corporation has pledged to provide all of its workers with access to educational opportunities that will better equip them for the industry of the future.

Prashant Saran, Amazon’s director of operations for the Middle East and North Africa, remarked, “Built within Abu Dhabi’s ecosystem of innovation, our new delivery station provides world-class last-mile technologies to the logistics and supply chain sector in the capital.”

The variety of positions available at this facility will aid in developing Abu Dhabi’s human resource base and preparing its workforce for the city’s ambitious digital future.

According to e-commerce DB, Amazon will generate over $500 million in net sales in the UAE in 2021, making it the market leader.

Following Noon, which is funded by Emaar founder Mohamed Alabbar and Saudi Arabia’s Public Investment Fund, is Namshi, the e-commerce division of Dubai’s Emaar Malls, with $249 million in revenue.

In addition to a slowdown in global revenue, Amazon is also dealing with supply chain problems, rising inflation, and the challenge of labour unions in the United States.

Gains earned during the Covid-19 pandemic, which turbocharged the delivery and logistics industries, have begun to diminish, leading the company to declare its first quarterly loss in seven years in April and forecast sluggish second-quarter sales growth.

However, the United Arab Emirates (UAE) presents a significant opportunity for the company, as the e-commerce market in the UAE is expected to increase 60 per cent to more than $8 billion by 2025, from 2021, as customers across the region continue to migrate toward online retail.

Amazon’s latest fulfilment centre is the company’s follow-up to its November announcement that it would collaborate with the Abu Dhabi Investment Office to construct the Middle East’s most technologically advanced warehouse in Abu Dhabi.

Amazon Opens in Abu Dhabi's Largest Delivery Hub

 

Amazon said Thursday that construction of the 175,000 square metre facility, which would be the largest in Abu Dhabi, will begin in 2019 and be finished in 2023.

It will open up new marketplaces for local businesses and give Amazon an even larger share of the market.

The Abu Dhabi Investment Office is a great example of a partner that shares Amazon’s commitment to innovation and commitment to supplying the infrastructure necessary for local businesses and residents to thrive in the digital economy, according to Ronaldo Mouchawar, vice president of Amazon Mena.

According to Abdulla AlShamsi, interim director general of Adio, the relationship between Amazon and Adio is a reflection of the ease of doing business in Abu Dhabi and the long-term growth potential available in the emirate.

Amazon is introducing cutting-edge logistics technologies to the region, and they share our ambition for further investment in innovation. Abu Dhabi will become a major worldwide hub for e-commerce and logistics upon the launch of Amazon’s new delivery station and planned fulfilment complex in 2023.

Al Samha, Al Shawamekh, Yas Island, Saadiyat Islands, Bani Yas, and Al Wathba will all be served by Amazon’s new distribution centre in Abu Dhabi.

Companies founded by billionaire Jeff Bezos are increasing spending in the United Arab Emirates (UAE), particularly on measures to ensure worker safety in light of the recent Covid-19 outbreak.

Amazon has reportedly spent over $15 billion on worldwide preparations for a pandemic.

Earlier this month, the firm revealed that beginning later this year, deliveries to consumers in select areas of California would be made by the drone.

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