UAE-based Mohebi Logistics, one of the largest vertically-integrated supply chain management companies in the Middle East, has broken ground on its new Dh550 million ($150 million) facility at Dubai World Central (DWC).

A subsidiary of Mohebi Investments and an affiliate of Zainal Mohebi Holdings based in Dubai, Mohebi Logistics said the new centre will come up on a 206,000 sq m area. It is due for completion by the end of 2016.

Building on its successful and sustained track record in FMCG logistics through local know-how, strong market reputation and extensive network, the family-owned Emirati business is consolidating its entire Group activities at DWC, said a statement from the company.

The facility comes as part of an overall Dh1 billion ($272 million) investment that Mohebi Investments has earmarked to establish its logistics unit as a major regional player.

It will encompass the Zainal Mohebi Holdings corporate office and storage capacity of 180,000 pallet positions, more than doubling the company’s existing storage and logistics capabilities, to provide enhanced and customised services to its long-standing regional and global clientele.

On the new facility, CEO Mohammed Mohebi said: "To stay innovative, you must be willing to constantly re-evaluate how well you work with your business partners. We are proud and excited to become a strategic partner of Dubai World Central and a key contributor to Dubai’s continued economic growth."

"It is important that Emirati talent and know-how offered by homegrown companies is developed to support our leadership’s vision of creating a knowledge-based economy. Dubai World Central will play a critical role in showcasing both Emirati talent and corporate capabilities, which in my opinion is crucial in serving our national interests," he added.

Khalifa Al Zaffin, the executive chairman, Dubai Aviation City Corporation, said: "We are proud to welcome to the DWC family one of the oldest and most exemplary Emirati family business organizations in the UAE – Zainal Mohebi Holdings."

"The company reflects our nation’s ethos of business excellence and progressive culture. We are confident that its corporate and operational growth will not only flourish under the DWC ecosystem, but shall also contribute to it," stated Al Zaffin.

In addition, Zainal Mohebi Holdings will consolidate its FMCG operations by also re-locating to Dubai World Central, said the official.

The objective is to achieve a lean and efficient retail distribution business that can take full advantage of DWC’s infrastructure, multi-modal transport accessibility, dedicated services and facilities, he added.-TradeArabia News Service