A Chinese investor has signed a AED1.5bn ($408m) agreement for the development of industrial space at Dubai Food Park.

Ningxia Forward Fund Management Company signed the agreement with Dubai Food Park for the development that will be split onto six major components: meals processing; packaged food processing; cold chain storage; production of food packages; e-commerce and commodities exhibition; and bio-safety disposal of wastewater and wastes.

Some 75 per cent of the total project area will be allocated for factories, 17 per cent for warehouses and 8 per cent divided between offices and other facilities.

The first components to be built include 30 food plants, including two Chinese catering companies and two advanced manufacturing plants for food packaging materials. The facilities will cover an area of 407,000 square metres.

The project is scheduled for hand over 24 months after construction starts.

Dubai Holding launched Dubai Food Park in July this year. The AED5.5bn project is aimed at building on Dubai’s position as a leading regional hub for foodstuffs and food re-export.

Located at Dubai Wholesale City, Dubai Food Park will cover an area of about 4.8 square kilometres. About 1 square kilometre will be a free zone and dedicated to re-exports.