NIP, Al Bayader invest US$49 mn in packaging hub

National Industries Park (NIP) has signed an agreement with Al Bayader International to develop a new manufacturing and logistics hub in Dubai, a project expected to increase regional food packaging production capacity by 30,000 tonnes annually. The AED180 million ($49 million) facility will support food, hospitality and retail supply chains across the GCC by boosting local packaging production and reducing dependence on imports.

The project will cover more than 678,000 square feet and combine manufacturing, warehousing and distribution operations at a single site. Construction is set to begin in 2026, with operations expected to start in early 2028.

Once completed, the facility will produce up to 10,000 tonnes of paper-based food packaging and 20,000 tonnes of recycled and circular plastic packaging each year. Additional production lines for aluminium-based and bio-based packaging materials are planned for a later stage.

Abdulla Al Hashmi, Global COO, Parks and Economic Zones, DP World, said, “Expanding regional manufacturing capacity in this sector enhances reliability, shortens supply cycles and strengthens the broader trade ecosystem across the GCC.”

The integrated setup is expected to shorten delivery times for food businesses, improve product availability and strengthen regional supply chains. The facility will also support exports to markets across the GCC and beyond.

The development includes a robotics-enabled fulfilment centre, Al Bayader’s headquarters and employee accommodation. It will also feature solar power systems, water treatment facilities and waste management infrastructure.