Out of the box

Addressing industrial real estate problems ... a necessary step

Ismail Al Hammadi

May 04, 2021

We were all pleased with the "300 billion project", the grand national strategy for industry and advanced technology, in addition to the strategy of the Emirates Development Bank, which has allocated 30 billion dirhams by 2025 to support large institutions, small and medium enterprises and emerging companies, within the sectors of industry, health care, infrastructure, food security and technology, and our hope There is great significance in the results that these two strategies will achieve over the next 10 years for the industrial sector in the country and all other sectors that are related to it, and we also hope to achieve a clear vision for the future of this sector.

But the matter may require setting up a plan for the industrial real estate sector, especially the industrial lands, which are still mired in a set of problems that may become one of the main reasons impeding the success of the desired goal of the industrial strategy if it is not addressed quickly.

Since the real estate base is necessary for any type of industry, the strategy will have a tangible effect on increasing its global competitiveness, enhancing its attractiveness and enhancing its ability to attract investors to the real estate sector through the matter of industrial real estate. What can be confirmed on this point is that attention to and treatment of the current problems of industrial real estate is a very important step for promoting the various industrial activities and various industrial zones, and expanding the circle of foreign direct investment attraction.

Raising the efficiency of industrial lands, storage areas, workers' accommodation and office spaces is one of the required solutions not in terms of infrastructure and logistical services, because we are well aware of the good level that the country enjoys in this field, but in terms of facilities that would raise the demand for industrial real estate, especially land. And rental prices, among the points of contribution to reducing the operating costs of industrial units for investors, and an encouraging step to enhance the attraction of new investors to the industrial sector and raise the ceiling of their investments.

Industrial real estate prices of various kinds, sale or rent, and other fees associated with them, and all costs related to the process of operating them, acceleration of financing and interest fees on bank loans, in addition to fees for work, workers, residencies, commercial licenses and facilities for young citizens to encourage them to establish their industrial projects, and support small and medium companies to go Towards industrialization .. all points must be reconsidered to advance industrial real estate and raise the rate of success of the strategy.

If efforts are unified and continuous coordination between all concerned parties to explore all the current barriers and problems and address them properly while offering solutions and future projects other than those familiar, then we will reap more than we expect from this strategy, because it will open broad horizons for entrepreneurs and companies and will create more job opportunities. This means that the demand for housing, food, clothing, education, health and all the necessities of life will rise.

In short, there are other sectors that will benefit from this strategy, and therefore it is necessary to reconsider the problems of the industrial real estate sector and address them, in order to achieve goals that exceed expectations.

• «Raising the efficiency of industrial lands, storage areas, and workers’ housing is one of the required solutions.

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