The Box Bags US$12.5 Million From Shorooq For UAE Expansion

Dubai-based self-storage provider The Box has secured $12.5 million in debt financing from Shorooq’s Credit Practice to expand its operations and develop new facilities across the UAE.

The investment will support the construction of a new storage facility in Dubai as the company strengthens its market presence to meet the rising demand for flexible storage solutions. 

Founded by Wadih Haddad in the UAE in 2007, The Box offers personal storage, record management facilities, and moving services. We at Inc. Arabia interviewed Haddad and Joe Barron, a senior investment professional at Shorooq, to discuss the company’s expansion plans, industry trends, and the strategic vision behind this investment. 

“Securing this financing allows The Box to optimize cash flow efficiency and strengthen our capital structure, enabling us to scale strategically and sustainably," Haddad told us. "With the support of Shorooq, we can accelerate our journey to help even more individuals and businesses 'make room for tomorrow,' offering storage solutions that adapt to their evolving needs." 

According to Barron, Shorooq’s decision to lead this financing was driven by The Box’s strong operational track record and market position. “The Box has a nearly 20-year operational history, strong margins, and high revenue visibility," Barron explained. "It is a category leader in a growing sector with a scalable model that efficiently meets the rising demand for storage solutions. This aligns with our strategy of backing high-growth businesses with strong fundamentals that transform traditional industries. We’re excited to support its expansion across the MENA.”

From Barron's perspective, compact living, coupled with the rise of e-commerce, is driving demand for self-storage in the UAE. “Urbanization, compact living, and e-commerce growth are driving demand for flexible storage," he said. "The UAE’s largely expat population has a higher propensity for self-storage, given frequent relocations and dynamic living arrangements. Digital transformation is also improving accessibility, while SMEs increasingly seek cost-effective storage and fulfillment solutions. Efficient land use and sustainability remain priorities, and The Box is at the forefront of these evolving needs." 

As both demand and supply thus rise, The Box’s key differentiator is its emphasis on customer experience, Haddad says. “At The Box, our biggest differentiator is our relentless focus on customer experience," he said. "We go beyond just providing storage space, we create seamless, flexible solutions designed around the needs of individuals and businesses navigating fast-paced urban living. From prime locations to best-in-class security, effortless digital access, and personalized customer support, we ensure that every interaction with The Box is convenient, secure, and stress-free,” he said. 

Reflecting on the past year, Haddad shares that industry leaders have grappled with mounting operational costs, forcing businesses to adapt and refine their strategies. “One of the biggest challenges in 2024 was the rising cost of operations, from real estate prices to utilities and regulatory expenses," he said. "As these costs increase, they inevitably impact the industry, often getting passed on to consumers. At The Box, we navigated this by focusing on efficiency and strategic growth, ensuring we optimize operations while continuing to deliver exceptional value to our customers.” 

With 2025 expected to bring greater on-demand access and automation, The Box aims to balance digital convenience with a human touch in customer interactions. “Looking ahead to 2025, we anticipate a continued rise in demand for flexible, technology-enhanced storage solutions," Haddad said. "Consumers increasingly expect on-demand access, automation, and digital ease, but they also value a human touch in service interactions. While we innovate with technology, we are committed to finding the right balance between tech-enabled convenience and personalized comfort, ensuring that every customer experience remains seamless yet deeply personal. For businesses in the industry, the key to staying ahead will be enhancing both innovation and service excellence. The future belongs to brands that prioritize customer experience, invest in quality, and create meaningful value, ensuring that every interaction, whether digital or in-person, exceeds expectations."

As for Barron, when it comes to building a startup that investors will take note of, he noted that capital efficiency and a long-term vision are key. “Prioritize strong unit economics, a clear competitive edge, and disciplined capital allocation," he said. "Think long-term but execute in stages, leveraging strategic partnerships to scale. Investors seek founders who combine vision with adaptability and operational excellence. At Shorooq, we back entrepreneurs who are not just building companies, but transforming industries."

Pictured on image is The Box founder and CEO Wadih Haddad. Image courtesy The Box.