Mohsen Ahmad, CEO, Logistics District – Dubai South • Interview
Mohsen Ahmad
CEO, LOGISTICS DISTRICT – DUBAI SOUTH
and sustainability. There will be much less demand for labor as the UAE moves closer to automation. I recently met two professors from MIT and Harvard, and we discussed why Dubai has not become automated. The main challenges are cheap labor and the fact that most warehouses are still being operated by third-party logistics (3PL) companies. Cargo owners should be making investments moving forward and they can start by putting in place their own facilities, embedding innovative technologies and bringing in the 3PLs to manage the facilities. The reason they have not done this is because warehousing costs represent a small expense in their P&L calculations— essentially meaning automation is not a priority. Nevertheless, in the month and years ahead, technology, sustainability, and e-commerce will become an integral part of all players in the sector.
How is the Business Park, situated within Logistics District, using the synergies of Dubai South and complementing the Logistics District?
Comprising 11 buildings with a total of 2.3 million sqft of office space, the Business Park fully complements the entire 145-sqkm Dubai South project. The park is carefully designed to facilitate the growth of all types of businesses, from start-ups to SMEs and multinationals. With complete turnkey business services and cost-effective office solutions, the Business Park is aligned to suit global business needs. Dubai South itself is the emerging face of Dubai. Its main components are the airport and two free zones—one for aviation and aerospace and the Logistics District. The Logistics District is meant to support Dubai’s focus on trade and logistics and to develop a district that will link Jebel Ali Free
Zone with the airport. The majority of companies do not need a warehouse in the Logistics District or a facility in the MBR aerospace hub; all they need is an office space, and this is where we factor in. In the aviation sector, we cater to private charter companies. There is a major market for new and used parts traders, drones, aviation management, air cargo, and aircraft. The Business Park brings together all these players in several industries to create large-scale business opportunities.
How do innovation and sustainability play into what is happening at the Business Park?
Innovation and sustainability are at the heart of our operations. This is the reason we continue to look for more ways to construct buildings according to LEED certification standards. Having a LEED-certified building helps tenants achieve higher environmental efficiencies. We provide many extra benefits that support our clients’ sustainability goals.
What additional features do you offer to facilitate activity and attract companies to the Business Park?
In terms of soft features, we have worked with the government to come up with four different products and solutions. We also consult with business councils and country delegations to support companies from their own countries. We help them establish a company as well as network with the right people and institutions. We invite investors from different parts of the world to establish a networking office here at no cost. We want people to hear about the positive experiences of investors who have entered the local market. Another feature is the dual licensing service. Many companies have two registered offices in Dubai, one in a free zone and another outside the free zone for all their GCC operations and sales. At Dubai South, companies can keep their two registrations but under one location. This is significant because dual licensing has long been demanded by free zone companies and entrepreneurs who are interested in operating multiple enterprises across the wider UAE market. There are already about 10 companies that have utilized this advantage, and their annual savings were about AED1 million.
We do it through digital marketing, tapping the easy access to mobile devices as well as social media. We also engage in international forums and conferences with our partners from other government entities such as Dubai FDI, Dubai Chamber, and the Ministry of Economy, in addition to indirect marketing through local and international business agents. We are progressively changing the perception that it is expensive to set up a business in Dubai. We have also made it easier by providing online portals where one can establish their company from their home country.
We aim to attract more companies related to aviation and logistics and provide them with quality support. Being an entrepreneurial hub, 20% of our customers upgraded from our business centers. Their business is growing, and they have been moving with us to bring their companies to the next level. To date, we have achieved 88% retention rate. We have not increased rents or fees for the past four years and have no plans to do so. ✖