Zainal Mohebi Holdings will relocate to Dubai South as part of Mohebi’s AED 550 million logistics development by Mohebi Investments.
This development will encompass Zainal corporate offices and consolidate the Group’s FMCG operations at the new site. The objective is to achieve a lean and efficient retail distribution business that can take full advantage of Dubai South’s infrastructure, multi-modal transport accessibility, dedicated services and facilities
The new facility will be spread over 206,000 square meters of land and hold a storage capacity of 180,000 pallet positions. This is more than double the company’s existing storage and logistics capabilities, providing enhanced and customized services to its long-standing regional and global clientele.
Dubai South will play a critical role in showcasing both Emirati talent and corporate capabilities and thereby serve the UAE’s national interests. As Dubai South expands its logistics base, it will play a critical role in ‘Connecting the World to Dubai and Dubai to the World’.
Mohebi Logistics and L’Oréal have announced the signing of a strategic partnership. This further enhances the already impressive international and local customer base that relies on Mohebi Logistics for its supply chain and distribution needs.
See the signing ceremony
L’Oréal is a world leader in beauty consumer and luxury brands in makeup, cosmetics, hair care and perfume.
A strategic realignment of their supply chain was realised at the beginning of the year to drive efficiencies and to consolidate both the Central Regional Distribution and Local Market Retail Distribution under one provider in 2016.
In the Gulf region, L’Oréal Middle East chose Mohebi Logistics to fulfil this task, stating three principal factors that guided their decision.
Mohebi Logistics holds a proven track record of managing complex changes in supply chain programmes. It has extensive experience with many large FMCG companies who set high standards for service and reliability. The company also follows a consistent business philosophy of becoming a long-term business partner to all its customers.
L’Oréal Middle East’s Managing Director Thierry Houssin commented, “In-line with our vision to strengthen our local presence in a very dynamic market such as the UAE and shifting to a ‘Direct-to-Retail’ model, we made the decision to partner with Mohebi Logistics based on their solid and strong capabilities with other big FMCG players in the market.”
“We’re proud to be a part of the L’Oréal family,” added CEO Mohammed Mohebi. “This partnership opens up a new vertical in the cosmetics and beauty sector for us. What better way to do that than with the industry-leading company, L’Oréal.”
In its quest to deepen its impact within the Gulf’s highly competitive beauty care markets, L’Oréal will use Mohebi Logistics’ specialist services for FMCG products that cover every link in the supply chain from origin management to last mile delivery.
Abu Dhabi Islamic Bank (ADIB), a leading financial services group, has announced the successful issuance of an AED 400 million Sukuk for Mohebi Logistics, one of the largest vertically-integrated supply chain management companies in the Middle East.
This issuance is structured under Sharia principles and is the first Sukuk transaction for a Dubai South entity. ADIB has acted as sole book runner for the Sukuk issue.
A new facility in Dubai South
The Sukuk proceeds will be utilized for the construction and development of Mohebi’s new warehouse and logistics centre in Dubai South. The facility is planned to be one of the region’s most innovative developments, serving key multi-national corporations including Nestle which is the world’s renowned nutrition, health and wellness organization. The new facility will have a storage capacity of 180,000 pallets and will be spread over 206,000m².
The deal is a landmark transaction for Mohebi as it represents their debut financing in the capital markets and is the first Sukuk issue based on an Istisna/Ijara structure. As a result of ADIB’s close collaboration with the Dubai South team throughout the execution process, ADIB was able to work closely within the Dubai South framework to structure the Islamic financing in a Sukuk format.
ADIB supporting growth initiatives
Tirad Al Mahmoud, Chief Executive Officer at Abu Dhabi Islamic Bank commented: “We are keen to partner with organizations such as Mohebi Logistics to support their growth initiatives as they play a leading role in the retail distribution business.
The transaction represents their debut Sukuk issue and is testament to their support for the Government of Dubai’s objectives for establishing Dubai as a global center of excellence for Islamic finance. We are also privileged to work alongside Dubai South and are confident that the free zone will strengthen Dubai’s position as a premier global trade and logistics hub.”
Mohammed Mohebi, Chief Executive Officer of Mohebi Logistics added: “The Sukuk issue will prove instrumental in helping us more than double our existing storage and logistics capabilities. The substantial interest shown in the Sukuk underlines the strong trust in Mohebi Logistics’ resilient growth plans and regional prospects.