Logistics & warehouse facility • Plot Area 12,000 sq.m • Zoning: Industrial-Logistics (IL-2)
This Phase 1 Executive Summary assesses a logistics and warehouse facility located within Jebel Ali Free Zone (JAFZA), Dubai, occupying a 12,000 sq.m plot classified as Industrial-Logistics (IL-2) under JAFZA Development Regulations. The facility comprises a 9,200 sq.m warehouse with 12m clear height, a 1,400 sq.m mezzanine office component, a dedicated loading yard with 8 dock-leveler bays, and hardstanding for 24 trailer units.
The assessment identifies a LOW-MODERATE risk rating (Score: 71/100), driven by three primary factors: (1) JAFZA-specific regulatory requirements that differ from mainland Dubai Municipality jurisdiction, creating a dual compliance layer for certain operations; (2) hazardous materials storage requirements under UAE Federal Decree-Law No. 24 of 2022 (Chemical Management) which necessitate upgraded containment infrastructure in Bay 3; and (3) the Etihad Rail Stage 2 corridor, confirmed to pass within 800m of the plot boundary, introducing construction disruption risk for 2027–2028 and long-term vibration considerations.
The property benefits from JAFZA's strategic positioning: 100% foreign ownership, 0% corporate and personal income tax, proximity to Jebel Ali Port (the largest in the Middle East), and direct access to Sheikh Zayed Road and Emirates Road. Current occupancy stands at 100% with a single tenant (3PL operator) on a 5-year lease expiring December 2028.
Assessment of 7 regulatory authorities with pass/review/fail determinations.
| Authority | Scope | Status | Key Finding | Est. Cost (AED) |
|---|---|---|---|---|
| Dubai Municipality (DM) | Building code (advisory in JAFZA), environmental | DM building code compliance confirmed through JAFZA's adopted standards. Environmental clearance valid. No active enforcement notices. | — | |
| ESMA | Product standards, warehouse equipment | Racking systems (Dexion P90) certified to ESMA/SASO load-bearing standards. Forklift fleet compliant. Last inspection: Sep 2025. | — | |
| Civil Defence | Fire safety, sprinklers, hazmat response | Main warehouse fire system compliant (ESFR sprinklers). However, Bay 3 hazmat storage area requires upgraded foam suppression system per UAE Fire Code 2023 Amendment 4 for Class 3 flammable liquids. | 380,000 | |
| RTA | Roads, heavy vehicle access, traffic impact | Direct access to JAFZA internal road network. Heavy vehicle permits current. No traffic study required (below 500 daily trips threshold). E311 interchange 1.8km. | — | |
| DEWA | Electricity, water, solar mandate | Current 2.1 MVA allocation adequate. However, DEWA's Shams Dubai industrial mandate (Circular 2025-07) requires 10% renewable energy by Dec 2027. Rooftop solar feasibility: 800 sq.m available, est. 180 kWp capacity. | 520,000 | |
| JAFZA | Free zone regulations, trade licenses, lease | Ground lease in good standing (25-year term to 2043). JAFZA trade license current. Sub-letting permitted per lease clause 14.2. Annual facility inspection passed Oct 2025. | — | |
| Dubai Customs | Customs bonded status, trade compliance | Customs bonded warehouse license (CBW-2020-7712) active. AEO (Authorized Economic Operator) status held by tenant. Smart customs clearance system operational. | — | |
| Total Estimated Compliance Cost | 5 2 0 | AED 900,000 | ||
JAFZA operates under a distinct regulatory framework that differs from mainland Dubai Municipality jurisdiction in several key areas.
| Regulatory Area | JAFZA (Free Zone) | Mainland Dubai | Impact |
|---|---|---|---|
| Building Permits | JAFZA Engineering Dept. (single window) | DM + Trakhees/DDA (multi-authority) | Simpler |
| Trade License | JAFZA Authority (100% foreign ownership) | DED (requires local sponsor or 100% since Jun 2021) | Favorable |
| Customs Duty | 0% within zone; 5% on mainland transfer | 5% standard import duty | Favorable |
| Environmental | JAFZA EHS Dept. + federal UAE standards | DM Environment Dept. + federal UAE standards | Dual Layer |
| Hazmat Storage | JAFZA HSE + Civil Defence + Federal Decree-Law 24/2022 | DM + Civil Defence + Federal Decree-Law 24/2022 | Complex |
| Property Tenure | Long-term lease (up to 50 years) | Freehold or leasehold (varies) | Leasehold Only |
The Etihad Rail Stage 2 corridor (Abu Dhabi–Dubai–Fujairah freight line) is confirmed to pass approximately 800m south of the plot boundary. Construction is scheduled for 2027–2028, with potential access disruptions on the southern JAFZA service road during heavy civil works. Long-term, the rail proximity is a net positive for logistics operations — JAFZA has announced plans for a rail freight terminal within 2km of the property, expected operational by 2030.
The current tenant stores Class 3 flammable liquids (industrial solvents) in Bay 3, totaling approximately 40 cubic meters. UAE Federal Decree-Law No. 24 of 2022 (Chemical Management), read with JAFZA HSE Directive 2024-03, requires: (a) a dedicated foam-based fire suppression system (current dry-pipe system insufficient), (b) secondary containment bunding capable of holding 110% of stored volume, and (c) real-time environmental monitoring with JAFZA HSE integration. The containment bunding is compliant; the suppression system and monitoring require upgrade.
DEWA Circular 2025-07 mandates that all industrial properties exceeding 5,000 sq.m must generate at least 10% of energy consumption from renewable sources by December 2027. The facility's annual consumption is approximately 1.8 GWh. The warehouse roof offers ~800 sq.m of suitable area for a 180 kWp solar PV installation, which would generate an estimated 270 MWh/year (15% of consumption), exceeding the 10% minimum. Installation timeline is 4–6 months including DEWA interconnection approval.
The property offers strong logistics fundamentals with JAFZA's favorable regulatory environment, port proximity, and upcoming rail connectivity. Two compliance items require attention prior to or shortly after acquisition:
This Executive Summary identified conditions requiring attention. Upgrade to Phase 2: Due Diligence for detailed JAFZA lease analysis, hazmat compliance deep-dive, environmental site assessment, and tenant lease audit.
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DISCLAIMER: This is a SAMPLE REPORT created for demonstration purposes only. All property details, regulatory references, authority findings, risk ratings, financial figures, and recommendations contained herein are entirely fictional. No real property, entity, or regulatory filing is represented. This document should not be used for any investment, legal, or compliance decision. Actual BizFlow™ reports are based on verified data from relevant Dubai authorities and tailored to specific properties.