Saudi Arabia's Almajdouie Group Taps into United Arab Emirates' $40 Billion Logistics Market through Joint Venture

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Researched by Industrial Info Resources (Sugar Land, Texas)--As part of ongoing efforts to tap into the United Arab Emirates' logistics market, which is estimated to reach $40 billion by 2010, the Almajdouie Group (Dammam, Saudi Arabia), the oldest and leading provider of third-party logistics in the Middle East, has set up Maxx Logistics (Dubai, United Arab Emirates) in a joint venture with So Safe International (United Arab Emirates) and Jinghai Transport Company Limited (Shanghai, China). The joint-venture firm has set up a multipurpose logistics facility in Dubai's Jebel Ali Free Zone at an estimated cost of more than $13.6 million.

The move is directed at leveraging the emergence of the United Arab Emirates as a strategic global logistic hub because of concentrated efforts in the development of the nation's infrastructure and investments in related areas. A recent report by Transworld Intelligence predicts that despite the prevalent economic slowdown and consequent credit crunch, the Middle East will witness a growth of 17% to 19% in the contract logistics sector, outpacing the region's estimated industrial growth of 9%. Almajdouie is looking to tap into the growing trade between China and the United Arab Emirates and also global trade that resorts to the area as a transitional hub.

Maxx Logistics is registered under the sponsorship of the Jebel Ali Free Zone and is equipped with advanced technological infrastructure and modern asset support. The firm's first facility, built on a plot area of more than 16,000 square meters, is one of the most modern of its kind in the Middle East aimed at providing a profitable global gateway to organizations and their supply chains. The Almajdouie Group plans to begin the development of a green facility for Maxx Logistics based on environment friendly infrastructure certified according to the guidelines of Dubai's government. Maxx Logistics will focus on providing accurate, flexible, cost-efficient and high-speed cargo movements by employing strategic warehouse-management solutions and modern and scalable technology platforms.

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