DLC is the first phase of a government-backed, 140-square-kilometer, master-planned urban community called Dubai World Central. The US$33-billion project, which is under construction 40 kilometers from the existing Dubai International Airport, will eventually comprise one of the world's largest, integrated multi-modal logistics platforms.

Joseph Ghazal, senior vice president for ProLogis in the Middle East, says the Aramex agreement marks a first step in the development of the company's Middle East platform. "We expect to grow our business by securing build-to-suit and fee development agreements with leading companies, many of which are multi-national, and through strategic land transactions in key markets throughout the United Arab Emirates," he explains.

Marsden tells PJ that many of ProLogis' major 3PL customers want to establish a presence in the market, but adds that demand for modern facilities is growing among local companies as well. However, she continues, at present there is a market only for build-to-suit and fee projects rather than spec development. But she expects demand for general inventory development will grow over time as major logistics companies that are accustomed to a reliable supply of product begin expanding their presence.

"Given the global nature of our customer relationships, we believe further expansion into this region would be consistent with our core business strategy," she says. "However, it is too soon to speculate on long-term plans in terms of additional development."