Dubai's industrial and logistics sector recorded 12.3 million sq. ft. of new demand during the first half of 2026, compared with 11.5 million sq. ft. during the same period last year, reflecting continued momentum across the emirate's industrial market. Manufacturing and industrial businesses emerged as the largest source of demand, accounting for 35.1% of all new space requirements, while demand for facilities larger than 100,000 sq. ft. increased significantly, highlighting the growing need for large-scale industrial and warehousing infrastructure.

The market is gradually moving towards a more balanced supply-demand environment as newly completed industrial and logistics facilities provide occupiers with greater choice. Rental trends have become more location-specific, with asset quality, connectivity, and operational efficiency increasingly influencing leasing decisions. Among key industrial hubs, Dubai South recorded the strongest rental growth, rising 22% year-on-year.

Industrial activity remained robust during the early months of 2026 before regional geopolitical developments slowed new decision-making from March onwards. While transactions already in progress continued to be completed, some occupiers deferred expansion plans as they reassessed operating costs, supply chain strategies, and future investment priorities.

The report also highlights the growing importance of resilient logistics infrastructure across the UAE. Shipping disruptions have accelerated the search for alternative trade routes and logistics solutions, supporting strategic investments such as DP World's partnership with the Port of Fujairah to develop deep-water port infrastructure. With more than 10 million sq. ft. of warehouse space available across the Northern Emirates, the UAE continues to strengthen its position as a regional hub for manufacturing, logistics, and global trade.