ProLogis has signed a deal to build its first distribution centre in the Middle East in Dubai.

The global distribution giant will develop a 798,000 sq ft warehouse for Aramex, a major transport solutions provider.

Near Jebel Ali port

The facility will be developed in Dubai Logistics City, a new logistics hub located near the Port of Jebel Ali. It is scheduled for completion by the second half of 2008.

Jeff Schwartz, chairman and chief executive officer of ProLogis, said: ‘We have been investigating business opportunities in this region for over a year. Dubai is quickly becoming a gateway to the Middle East, with DLC set to serve as one of the largest supply chain communities in the world. Having a presence in this rapidly growing global logistics hub will enable us to become part of this burgeoning economic environment.’

Part of £16bn Dubai World Central

DLC is the first phase of a government backed, £16bn, 34,000 acre urban community called Dubai World Central. It will eventually comprise DLC, as well as the planned Dubai World Central Airport and Jebel Ali Port.