GKE to expand storage and logistics operations to Dubai by 2028
The new facility aims to serve MNCs from the chemical, manufacturing, pharmaceutical and semiconductor industries
[SINGAPORE] GKE Corporation is kickstarting its overseas growth strategy with an ambitious expansion of its storage and logistics operations to Dubai.
The company, which currently operates in both Singapore and China, has started construction of its new warehouse at the Jebel Ali Port located within the Jebel Ali Free Zone.
The new facility aims to serve MNCs from the chemical, manufacturing, pharmaceutical and semiconductor industries.
GKE CEO Neo Cheow Hui told The Business Times in an exclusive interview that the company chose Dubai as it functions as a “gateway” for GKE’s customers to access markets in the Middle East and Africa.
“Through GKE’s inventory system, we provide our customers with geographical oversight on their inventory,” said Neo. This allows MNCs to quickly make regional business decisions, he added.
Singapore’s space constraints also pushed the company to look towards the Middle East for further growth.
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Revenue generated from cargo flows is expected to be greater than the estimated S$6 million annual lease GKE will pay to DP World across the 20-year agreement.
The Dubai warehouse will span 400,000 square feet. Half of its storage capacity will be allocated to Class 3 and Class 8 dangerous goods, which include corrosive, flammable and toxic products. The other half will be used for the storage of general cargo. Transportation services will also be provided to customers.
GKE announced a strategic partnership with DP world, a Dubai logistics giant on Jan 6 after signing a head of terms document to operate in the Middle East. Over the 20-year lease, a lease rent of S$120 million will be payable from GKE Dubai to JAFZA Enterprises FZE, a subsidiary of DP World.
As part of the agreement, DP World will be responsible for the construction of facilities and securing of storage and transportation licences, said Neo.
Start-up expenses of the Dubai operations affected GKE’s H1 FY2026 results which were announced last week.
Net profits declined 57.5 per cent from S$4.4 million in H1 FY2025 to S$1.87 million.
Apart from the start-up expenses in Dubai, there was also heavy rainfall in Guangxi, China that adversely affected GKE’s infrastructural materials and services business.
Revenue for the six month period ended Nov 30, 2025 rose 5.3 per cent to S$66.5 million.
Notwithstanding geopolitical uncertainties such as trade wars, Mr Neo was confident that the company will continue to experience revenue growth through the expansion while the global situation is stabilising.
“I already sense that our customer (base) is reviving. Yes, the storage and volume in our warehouse has dropped, but we have started seeing improvements.”
In its SGX announcement, GKE said it “will persist in rolling out its planned expansions, especially in its core warehousing & logistics segment, both in Singapore and internationally. While there will be a gestation period for the planned expansions to generate revenue streams, the Group believes that prior investments and efforts are required to bring growth opportunities to fruition.”
An interim dividend of S$0.05 per share was declared.
GKE shares closed S$0.001 up at S$0.087 on Friday (Jan 16).
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