Amazon, the world's biggest online marketplace, opened its largest delivery station in Abu Dhabi as it continues to scale up operations.
The 4,700-square-metre centre — the company's second-largest in the UAE — provides same-day and one-day delivery services to its customers in Abu Dhabi.
It also comes in the lead-up to next month's Prime Day — Amazon's annual mega-sale event exclusively for Prime members — during which orders and deliveries increase sharply, the Seattle-based company said on Thursday.
The centre will create hundreds of jobs that Amazon says will help to shape the future of commerce in the UAE.
All employees will be eligible for training programmes meant at upskilling their talent to be prepared for the future of the sector, the company said.
“Built within Abu Dhabi’s ecosystem of innovation, our new delivery station brings world-class last-mile technology to the logistics and supply chain sector in the capital,” said Prashant Saran, director of operations for Amazon in the Mena region.
“The range of jobs at this facility will help to nurture the city’s talent pool and prepare them for the digital future that Abu Dhabi is striding towards.”
Amazon is the largest e-commerce player in the UAE, with net sales of about $500 million in 2021, data from ecommerceDB shows.
Namshi, the e-commerce unit of Dubai's Emaar Malls, was second with $249m while Noon, the portal backed by Emaar founder Mohamed Alabbar and Saudi Arabia's Public Investment Fund, was next with $169m.
Globally, Amazon is facing several headwinds, including supply chain glitches, rising inflation and the challenge of labour unions in the US, not to mention a slowdown in overall revenue.
The company reported its first quarterly loss in seven years in April and projected sluggish second-quarter sales growth as the gains it made during the Covid-19 pandemic, which supercharged the delivery and logistics sectors, started to wane.
However, the UAE presents a big opportunity for the company, with the country's e-commerce sector forecast to grow 60 per cent to more than $8 billion by 2025, from 2021, and as consumers across the region continue to shift towards online retail, according to a recent report by Euromonitor International.
Amazon's newest centre is a follow-up to its announcement in November about building the Middle East's most technologically advanced warehouse in Abu Dhabi through a partnership with the Abu Dhabi Investment Office.
The 175,000-square-metre site, which would be the largest in Abu Dhabi once it opens, is expected to be completed by 2023, Amazon said on Thursday.
It will also create thousands of jobs and drive innovation in logistics, as well as give local entrepreneurs and retailers access to new markets through Amazon.
“We pride ourselves on working alongside partners such as the Abu Dhabi Investment Office, who share our focus on innovation and providing the right resources and logistics to enable businesses and talent in Abu Dhabi to excel in the digital economy,” Ronaldo Mouchawar, vice president of Amazon Mena, said.
The Amazon-Adio partnership reflects the ease of doing business in Abu Dhabi and the long-term growth opportunities available in the emirate, said Abdulla AlShamsi, acting director general of Adio.
“Amazon supports our vision for sustained investment in innovation and is bringing the latest logistics technologies to the region. The opening of Amazon’s new delivery station and planned fulfilment centre in 2023 will establish Abu Dhabi as a major global hub for e-commerce and logistics,” he said.
Amazon's new delivery centre will also serve Abu Dhabi's outer areas, including Al Samha, Al Shawamekh, Yas Island, Saadiyat Islands, Bani Yas and Al Wathba.
The company, founded by billionaire Jeff Bezos, continues to invest in the UAE, especially in employee safety, owing to the Covid-19 pandemic.
Amazon said it has invested more than $15bn in pandemic-related measures globally.
Earlier this month, the company announced that it would start to use drones to deliver some purchases to US customers later this year, starting in parts of California.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
'Operation Mincemeat'
Director: John Madden
Cast: Colin Firth, Matthew Macfayden, Kelly Macdonald and Penelope Wilton
Rating: 4/5
Key products and UAE prices
iPhone XS
With a 5.8-inch screen, it will be an advance version of the iPhone X. It will be dual sim and comes with better battery life, a faster processor and better camera. A new gold colour will be available.
Price: Dh4,229
iPhone XS Max
It is expected to be a grander version of the iPhone X with a 6.5-inch screen; an inch bigger than the screen of the iPhone 8 Plus.
Price: Dh4,649
iPhone XR
A low-cost version of the iPhone X with a 6.1-inch screen, it is expected to attract mass attention. According to industry experts, it is likely to have aluminium edges instead of stainless steel.
Price: Dh3,179
Apple Watch Series 4
More comprehensive health device with edge-to-edge displays that are more than 30 per cent bigger than displays on current models.
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
THE SPECS
Engine: 3.5-litre V6
Transmission: six-speed manual
Power: 325bhp
Torque: 370Nm
Speed: 0-100km/h 3.9 seconds
Price: Dh230,000
On sale: now
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
