Al Quoz Industrial Area 2 is one of the most strategic and business hubs in Dubai as it is located in between the arteries of Sheikh Zayed Road and Al Khail Road. From established entrepreneurs aiming to grow their businesses, to logistics firms searching for warehouses, to creative enterprises seeking studio spaces, Al Quoz Industrial Area 2 offers a unique mix of connectivity, cost-effectiveness, and commercial adaptability that few other zones in Dubai can rival.
Not all of the free zones in Dubai or the shiny business parks are purpose built, and Al Quoz Industrial Area 2 is one of those places that have developed organically over the decades, and is now a successful mixed use industrial corridor. Today it’s home to everything from auto workshops to cool storage spaces, to art galleries, fitness centers, and pop-up retail concepts—a mix that makes it truly unique as an industrial area in the UAE.
The Al Quoz Industrial Area’s geographical benefits, commercial landscape, real estate opportunities, key industries, infrastructure, and future outlook are all covered.
Strategic Location and Connectivity: The Geographic Advantage
The unbeatable location in the urban grid of Dubai is one of the best reasons for businesses to take the plunge, and select Al Quoz Industrial Area 2.
The area is indeed within the confines of Al Quoz district itself which is flanked by two of Dubai’s most important road arteries – Sheikh Zayed Road (E11) to the west and Al Khail Road (E44) to the east. By cutting transit times in half for goods transport, supply chain operations and commutes for employees, this dual-highway access will make a significant difference.
The advantages of key locations are:
- Central Dubai positioning – Al Quoz Industrial Area 2 is strategically located in between Dubai Marina and Downtown Dubai, with businesses easily reachable in a 10-20 minute drive to most major commercial hubs.
- The close location of Dubai Mall and Downtown Dubai (around 10 km northeast), with rapid B2C connectivity for businesses with high retail or high-end hospitality clients.
- Near Jebel Ali Port and Logistics Corridor – within 25–35 minutes’ drive, businesses are in close proximity to one of the world’s busiest container ports.
- Accessibility of Dubai Metro – Dubai Mall Metro Station on the Red Line is around 2 km away, which offers public transport for employees and clients.
- Those who wish to have even more convenient connections can find it at Al Quoz Metro Station, which is located on the northern edge of Al Quoz.
This mix of highway infrastructure and a convenient seat to the port makes Al Quoz Industrial Area 2 a logical choice for logistics-intensive sectors such as manufacturing, food distribution, automotive services and construction supply.
Commercial Landscape: Who Are The Companies?
Al Quoz Industrial Area 2 doesn’t represent a specific industry vertical. It is really a diversified commercial area, mirroring Dubai’s bigger vision to be a worldwide centre for trade, manufacture, creative field and services.
Car and Automotive Services
The district has served as the center of the automotive industry for a long time. There are many dealerships for second-hand cars, specialist repair shops, tyre and alignment centres, fleet service providers and spare part suppliers. With a large number of cars on the road, Dubai’s vehicle population is among the highest per capita in the world and this high population ensures uninterrupted demand for these services throughout the year.
Economic, financial, and managerial aspects of warehousing and storage and the role of logistics.
Many of the plots in Al Quoz Industrial Area 2 are filled with large-format warehouses. Ambient warehouses are used by the food & beverage industry for cold storage with temperature control, or by the ecommerce industry for fulfillment warehouses, construction materials storage, and retail supply chain. Outbound distribution is very efficient as the area is connected to Al Khail Road and Sheikh Zayed Road.
The production and light industry is the second industry.
The industries of small to medium scale manufacturing plants are integral part of the industrial identity of the region. Historically, furniture production, metal fabrication, signage, printing and packaging and bespoke joinery workshops have all flourished here. This mix of large spaces, high clearance ceilings and three phase power availability is accommodating to manufacturing tenants.
Building and Construction
There is a good concentration of fitout, interior design and tile and stone stores, sanitary ware showrooms, and building materials suppliers in Al Quoz Industrial Area 2. This focus adds a convenient, one-stop environment for contractors and developers working on projects throughout Dubai.
The production of food and beverage products.
The area has proven to be suitable for central kitchen operations, food processing units, catering companies and specialty food importers. Dubai is increasingly building up its regulatory structure to allow for food production and processing in the licensed areas of the designated industrial zones.
Creative Industries and Studios
Al Quoz Industrial Area 2 is unique because it has attracted creative businesses. The area’s expansive open space, affordable rents and industrial style have also appealed to photography studios, film production companies, event management firms, creative agencies and fitness studios, which are hard to find in more refined commercial districts in Dubai.
Real Estate / Property: Warehouse, Showroom, Office Space Options
The real estate in Al Quoz Industrial Area 2 is a highly lucrative middle ground between the high value and demand of Dubai’s free zones and the limited options available in purpose-built commercial areas.
Warehouse Units
The most popular property category is warehouse units. They can vary in size from 3,000 sq ft for a small storage or workshop unit up to 50,000+ sq ft for a large logistics or manufacturing operation. Some of the most sought-after features for buyers and tenants include:
- Mezzanine office additions
- Loading docks and large roll-up doors
- High clearance (7–12 metre ceiling heights)
- Three-phase electricity supply
- 24-hour security access
Historically, warehouses in Al Quoz Industrial Area 2 have been leased at rates of AED 25-55 sqft per annum based on the specification, age of the warehouse and location of the specific plot in the area.
Showroom and Retail-Facing Units
Showrooms – typically for automotive, furniture, tile and building materials companies who require a combination of display and storage space under the one roof – are becoming more common in ground-floor units located on internal roads. The mix of showroom and warehouse is one of the most functional commercial spaces in the area.
Office and Mezzanine Spaces
A large number of tenants are found in the warehouses that are combined with office mezzanine spaces. There are few industrial office units, but units can be found in neighbouring commercial units. Hybrid spaces, where operational and administrative functions are under one roof, are well entrenched in the area’s leasing market.
Infrastructure and Facilities
Al Quoz Industrial Area 2 has a good urban infrastructure which has been developed over years of commercial operations.
- Electricity and Water: Dubai Electricity and Water Authority (DEWA) assures a reliable supply of electricity and water. Industrial users can access three-phase power for powering their heavy machinery and manufacturing processes.
- Road Network: Internal roads are of good condition throughout and have wide turning circles suitable for heavy vehicles and articulated lorries. Most of the units have dedicated loading areas in front, ensuring efficient movement of goods.
- Telecommunications: Several providers offer fibre-optic broadband connections, which are suitable for businesses with data-intensive operations. Both Etisalat (e&) and du provide commercial service options.
- Security: although this is not a gated free zone, the area has the presence of Dubai Police and most of the landlords provide private security especially for the major warehouse compounds.
- Banking & Services: In the surrounding Al Quoz district you will find branches for major UAE banks, exchange houses, restaurants and retail services to cater to the working population in the area.
Al Quoz Industrial Area 2 and Al Quoz Industrial Areas (Nearby Industrial Zones)
Comparing Al Quoz Industrial Area 2 with neighboring areas provides valuable insights for businesses when choosing their locations.
Al Quoz Industrial Areas 1, 3 and 4 are located adjacent to Al Quoz Industrial Area 2, and share many of its characteristics. However, Area 2 has grown a more automotive, fitout and creative businesses concentration that is slightly different from the heavier manufacturing in Area 3 or the storage dominant feel in Area 4.
The larger plots are available at Jebel Ali Industrial Area as well as the free zone benefits of 100% foreign ownership and import/export duty benefits, though typically more distant from central Dubai and at a higher operating expense.
Dubai Investment Park (DIP) offers a more structured, master-planned free zone for medium and large manufacturers who want to be formally part of a free zone.
Al Quoz Industrial Area 2 is often the most economical and viable option for businesses that don’t necessarily need a free zone registration, and would want a central location with organic commercial density.
Setting up and licensing a business in Al Quoz Industrial Area 2
The Dubai Department of Economy and Tourism (DET) is responsible for business licensing in Al Quoz Industrial Area 2 for the mainland. This implies that the businesses here are subject to normal Dubai mainland laws – a contrast from Free Zones.
Key licensing considerations:
- Businesses need to have a DET issued trade licence for the mainland.
- An industrial licence is required for industrial activities and there are separate categories of licence for trading and service activities.
- Other food production and manufacturing processes may need to be approved by other regulatory authorities such as Dubai Municipality and the Food Safety Department.
- The Foreign Direct Investment laws in the UAE have been reformed, allowing foreign nationals to establish 100% foreign-owned mainstream businesses, which has been a barrier for foreign entrepreneurs until now.
Having a registered business setup consultant who understands the Dubai DET process can greatly expedite the timeline for the licensing process.
Transportation & Commuter Assistance
There are several modes of transport available for access to Al Quoz Industrial Area 2:
- Most employees use private vehicle as their main means of transport and there are fast roads such as Sheikh Zayed Road and Al Khail Road from all over Dubai.
- Public bus — Al Quoz has public bus routes, which are connected to the rest of the public bus network, run by the RTA.
- Dubai Metro + taxi — employees can board the Red Line to Al Quoz or Mall of the Emirates stations and travel by taxi or ride-hailing to their destinations.
- Many larger employers in the area have staff buses because of the predominance of manual and semi-skilled labour in the industrial sector company transport.
Al Quoz Industrial Area 2 Lifestyle and Amenities
Al Quoz Industrial Area 2 itself is a working environment, however, the surrounding area has drastically changed with regard to its lifestyle and amenity offering.
One of Dubai’s most acclaimed creative spaces, Alserkal Avenue, located within Al Quoz, is home to modern art galleries, independent cafes, concept stores, and event spaces. It’s a sign of the new mixed commercial-creative identity of Al Quoz.
Within a 5-minute drive, Mall of the Emirates, one of Dubai’s largest shopping malls, offers more than 630 shopping stores, restaurants, Ski Dubai and large cinema screens for the employees and residents to enjoy.
Community food — There are good food choices here, from South Asian and Filipino restaurants that serve the large blue collar workforce, to specialty cafes and health-conscious eateries for the creative community at Al Quoz.
Look at Future Development and Investment Prospects
The outlook for industrial and commercial property in Dubai is bright due to planned investments from Expo 2020, the development of the digital economy, and robust tourism and trade activity.
Al Quoz Industrial Area 2 is poised to profit from a number of macro trends:
- A need for last-mile distribution warehouses in central areas due to the growth of e-commerce.
- Shift in manufacturing back to regions due to shifting supply chains to become more local and reliable after global disruptions.
- Dubai’s vision for the development of the cultural and creative sector, known as Creative economy, continues to attract studios, agencies, production companies.
- Dubai’s road and public transport infrastructure is enhanced further to increase accessibility in the area.
The property value and rents in Al Quoz Industrial Area 2 have been on a consistent upward trend over the past few years, attributed to the growing demand and shortage of large format warehouses and showrooms in the heart of Dubai.
Reasons Why Businesses Opt to Choose Al Quoz Industrial Area 2
To sum up, there are several factors of Al Quoz Industrial Area 2 which are mutually supportive to sustain the commercial appeal of the area:
- Excellent multi highway access to Central Dubai location!
- Multi-industry verticals supported by a diverse commercial ecosystem.
- Freedom of mainland licensing without free zone limitation.
- Competitive rental rates when compared to similar central areas
- Existing service infrastructure, such as power, water and telecoms
- Close to big lifestyle and transport facilities
- An unusual combination of industrial works and creative energy
From logistics hubs to manufacturing, automotive services and creative enterprise, Al Quoz Industrial Area 2 provides the wealth of commercial infrastructure and strategic situation that still draw in businesses of all sizes and sectors.
Faq’s
1. What business do you find in Al Quoz Industrial Area 2?
It is home to automotive workshops, warehouses, logistics companies, light manufacturers, food production units, construction material suppliers, photography studios and creative agencies.
2. Is Al Quoz Industrial Area 2 a free zone?
No. It is a Dubai mainland zone and under the licence framework of the Department of Economy and Tourism (DET).
3. What is the distance between Al Quoz Industrial Area 2 and Dubai Mall?
Around 10-12 km or 15-20 minutes’ drive according to traffic.
4. What is the Dubai Metro station closest to you?
The closest stations are Al Quoz Metro Station and Mall of the Emirates Metro Station (both on the Red Line) which are about 2 km away from the area.
5. How much do warehouses cost to rent in Al Quoz Industrial Area 2?
The average annual cost of a unit is AED 25 to AED 55 per sq ft, depending on its size, specification and age.
6. Is it possible for foreign nationals to establish a 100% foreign owned company here?
Yes. The new foreign investment law in UAE allows 100% foreign ownership in most of the mainland activities without the need of a local partner.
7. Can 3 phase power be supplied to manufacturing businesses?
Yes. DEWA offers a three-phase power supply, which is suitable for industrial machines and industrial manufacturing operations.
8. What are the differences between Al Quoz Industrial Area 2 and Jebel Ali?
Al Quoz Industrial Area 2 offers more central location and mainland flexibility while Jebel Ali has free zone benefits such as larger plot sizes, and duty exemptions but is further away from central Dubai.
9. What access will be available for heavy vehicles on the road?
Heavy vehicles and articulated trucks can be accommodated on internal roads, which have direct access on Al Khail Road and Sheikh Zayed Road.
10. Is Alserkal Avenue in Al Quoz?
Yes. The Al Quoz district is now popular among the creative industry, with Alserkal Avenue, Dubai’s main art and creative centre, located within its boundaries.
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