MARKING a vibrant new milestone in its successful diversification drive Dubai on Tuesday flagged off an ambitious initiative - the Dh30 billion Dubai Wholesale City - a project that is envisaged to become the world's largest global wholesale hub in 10 years.

His Highness Shaikh Mohammed bin Rashid Al Maktoum Vice-President and Prime Minister of the UAE and Ruler of Dubai unveiled the master plan of the sprawling 550 million square feet city that not only seeks to reinforce Dubai's legacy as a thriving trading hub but also aims to transform the global wholesale trading scenario.

Shaikh Hamdan bin Mohammed bin Rashid Al Maktoum Crown Prince of Dubai; Shaikh Maktoum bin Mohammed bin Rashid Al Maktoum Deputy Ruler of Dubai; and other senior officials also attended the meeting.

To be fully commissioned in 10 years the new iconic development being designed to host 15000 wholesale traders aims to increase the UAE's share of the global wholesale trade sector which is valued at $4.3 trillion and expected to grow to $4.9 trillion in the next five years.

"The UAE is moving on with its strategic plan to diversify the national economy away from a dependence on oil. It has its unique economic vision that enables the creation of new economic sectors to contribute to the nation's growth even while upgrading existing sectors to ensure they are on par with highest global standards" Shaikh Mohammed said at the launch of the project.

Reiterating the role of trade in the nation's prosperity Shaikh Mohammed said it was a key contributor to maintaining the UAE's economic success as well as a crucial sector in its future development.

"The UAE's strategic location world-class infrastructure and strong institutions make it the most qualified place to lead the new wave of growth in wholesale trade on an international scale" the Vice-President said.

"Our aim is to build a sustainable national economy. Dependency on oil was never a choice and we will not bind our future to it."

The project the region's primary one-stop-shop for a wide range of integrated wholesale products and solutions is envisaged as a fully-integrated trading hub that aims to meet the needs of the local and international wholesale trading sector. The destination is projected to emerge as the world's leading wholesale trading hub and strengthen the UAE's position as a pivotal market in global trade. Wholesale trade is among the most important economic sectors today with huge growth prospects. Global trade is projected to grow by 12 per cent to $4.9 trillion in 2019.

Mohammed Al Gergawi chairman Dubai Holding which is developing the city said the initiative complements the series of projects in the emirate that articulate the unique vision of Shaikh Mohammed bin Rashid towards launching integrated destinations that serve diverse economic sectors. These include among others the Dubai Internet City and Dubai Media City that collectively host more than 5200 companies and over 67000 professionals across multiple industry verticals.

"Dubai Holding is committed to supporting the vision of the UAE's wise leadership in achieving sustainable development. And Dubai Wholesale City is among several projects that we have conceptualised as part of our priority to help achieve the UAE's post-oil vision. The launch of the Dubai Wholesale City comes as a result of intensive discussions and meticulous studies of the wholesale sector and the plethora of opportunities it offers. We are confident this project will have immense positive impact on wholesale trade in the UAE the Gulf region and the rest of the world" said Al Gergawi.

The news of the landmark initiative was greeted by Dubai's jubilant trading community with remarks ranging from "yet another feather in our city's crown" to "a logical and inevitable step forward for Dubai in its drive to reinvent itself as the region's most sought-after nerve centre for trade and commence."

Rizwan Sajan chairman of Danube Group greeted the project as the most significant step in Dubai's drive to be a modern world-class trading hub.

"A dedicated district for wholesale trade is a logical move forward for Dubai given its unparalleled trading legacy. It will provide the region's wholesale trading community a big edge by providing easier connectivity and ample area to display wares. Indeed it is a wonderful and game-changing project" said Sajan.

Paras Shahdadpuri chairman of Nikai Group of Companies and former president of the Indian Business and Professional Council said the sky is not the limit and this is true for the vision of Shaikh Mohammed whose vision travels at a much faster speed than light. "The Wholesale City's proposed connectivity and logistics support will play a very critical role in the UAE's economic growth making it an economic oasis not only of the region but also of the world. This is a great initiative which will hugely support the investor community of the UAE" said Shahdadpuri.

Dr P.A. Ibrahim Haji chairman of Century Group and former chairman of Texmas welcomed the initiative as morale-booster for the trading community. "Great initiatives like this will go a long way in further boosting business confidence and will help this great city to keep at bay any adverse impact of the current global slowdown."

Nazeer Veliyil chief executive of BorgRollsWarner Middle East said the Dubai Wholesale City marks the beginning of a new era in Dubai's trading history. "It is poised to become an appealing destination for buyers traders and suppliers of the world."

The wholesale hub will comprise specialised integrated trading parks that meet all the requirements of wholesale traders under one roof as well as an international trade exhibition facility.

Given the project's proximity to Al Maktoum International Airport and the Jebel Ali Port the development will create a crucial link between four main continents and aims to be home to more than 15000 wholesale traders.

The development will also feature 'Country Pavilions' that will include commercial centres and malls offering products from various countries including India Malaysia Thailand Turkey Australia China South Korea Germany Saudi Arabia the United States and South America.

The project will revolutionise the global wholesale trade through its utilisation of integrated smart services an advanced framework and the world's best logistics support. The City will launch operations by servicing strategic sectors and will include specialised boulevards for food construction materials electrical appliances electronics furniture and decor machinery equipment wood vehicles and spare parts and textiles and clothing.

The futuristic wholesale hub will also activate the world's largest e-commerce platform for wholesale trade in the region. The new service aims to enhance the UAE's capabilities in the global e-commerce space that is set to grow from $1.672 trillion to reach $2.941 trillion in 2018 with a compound annual growth rate of 21 per cent. In tandem the UAE's e-commerce market growth rate is expected to be double of the global growth rate in e-commerce.

The UAE's e-commerce market according to market speculation will surge up to four times its current size through the next three years - to rise from a value of $2.5 billion in 2015 to $10 billion in 2018 a compound annual growth rate of 59 per cent.

The hub will serve as an international trade exhibition facility and provide wholesale traders with comprehensive offerings including state-of-the-art infrastructure roads warehousing storage facilities and support services thus guaranteeing high operational efficiency and ease of doing business. For its part the international business-to-business exhibition facility will convene buyers with suppliers from around the world. The sizeable asset will serve as a mediator in global trade and open up a raft of service options to producers and traders even while saving them time and effort.

The project in its first phase will service a number of key sectors in an eco-friendly environment adhering to the highest quality standards of energy conservation waste management and industrial hygiene. Dubai Wholesale City will deploy the latest technology and range of smart city features.

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