Blackstone and Abu Dhabi's Lunate team up to build $5bn Gulf logistics platform

Glide platform will target top-quality assets

Containers at Abu Dhabi's Khalifa Port. Demand for logistics services in the UAE continues to grow during the current economic boom. Reuters

Blackstone, the world's biggest alternative asset manager, and Abu Dhabi-based Lunate are teaming up to invest in Gulf logistics assets and create a platform dedicated to the development of the sector across the region.

The companies will be establishing Gulf Logistics Infrastructure Development Enterprise (Glide), which aims to target $5 billion worth of top-quality assets in the six-nation bloc, they said in a joint statement on Monday.

Glide will develop, acquire and manage grade-A logistics assets and is expected to team up more partners, they said. Blackstone is the largest owner of logistics assets globally, with about 1.2 billion square feet (111.5 million square metres).

Glide is designed to capitalise on opportunities in the growing market that combines "global scale with regional expertise to unlock a market ready for transformation”, said Khalifa Al Suwaidi, managing partner at Lunate.

The platform will "offer our clients and investors access to compelling investments in high-quality logistics assets and support the development of new infrastructure to drive growth across the GCC", he added.

The logistics sector is one of the key engines of an economy, responsible for the movement of goods and services, and ensuring a robust supply chain that caters to both businesses and consumers.

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It is also critical for the economic diversification plans of Gulf nations such as UAE Industrial Strategy 2030, Saudi Vision 2030 and Qatar National Vision 2030, all of which have identified industry as a main driver.

In the Emirates, Abu Dhabi's AD Ports Group and Dubai's Jebel Ali are among the most important logistics hubs in the region, both of which are regularly expanding to cater to the rising logistics demand amid a booming economy.

The UAE’s economy maintained its strong momentum in the first quarter of 2025, with real gross domestic product rising 3.9 per cent year-on-year to Dh455 billion ($123.9 billion), according to preliminary estimates released by the Federal Competitiveness and Statistics Centre last month.

Growth is projected to outperform the global average this year, as it is expected to remain resilient to uncertainty in the global economy, the International Monetary Fund said last week at the conclusion of its Article IV consultation with the Emirates.

The Gulf also acts as an essential gateway from East and West, with the Red Sea, the stretch of water between Africa and the Arabian Peninsula, carrying about 12 per cent of global trade.

The sector remains strong despite a number of geopolitical conflicts in the region, with governments acting quickly to neutralise any ill-effects stemming from these challenges.

The Gulf's freight and logistics market is projected to hit nearly $110 billion by 2030, from an estimated $81.3 billion in 2025, growing at a compound annual rate of 6.2 per cent, data from Mordor Intelligence indicated.

“The profound economic transformation under way in the GCC, driven by pro-growth policies, favourable demographic shifts and broad-based economic diversification, is creating powerful momentum for sectors like logistics," said Jon Gray, president and chief operating officer of Blackstone.

New York-based Blackstone continues to expand its footprint in the Gulf. Last month, it teamed up with global private equity firm Permira to invest $525 million in Dubai-based Property Finder in the emirate's rejuvenated real estate market.

Lunate, which has interests in private equity, venture capital, private credit, real assets, public equities and public credit markets, has formed several funds and investment partnerships in recent months to expand its asset base and suite of investment products.

Last month, it launched what it claims is the region’s first thematic exchange-traded fund, providing investors with exposure to companies developing quantum computing technology.