Logistics basically refer to
the business processes that include management and movement of goods and
services from the point of origin to the point of consumption. It happens to be
the core segment of supply chain management and generally involves a plethora
of services like freight forwarding, multimodal transport via air, ship, truck,
and rail. It also deals with provision of customs brokerage, warehousing and
storage, tracking, and tracing of freight goods services.
Talking about the
United Arab Emirates, the country’s geographical location and infrastructure has
made it an ideal supply and re-distribution gateway and thus, certainly offer
huge growth potential for the logistics companies in the region, according to Logistics and Shipping Industry Research and
Market Reports. Basically, the
UAE is strategically located at the centre of international trade since over
one-third of the world's population resides within the range of a four-hour
flight and two-thirds within eight hours.
Over the years, UAE has well
maintained its position to be amongst the top logistics hotspots in the world
offering an evolving major transshipment hub, which has been, in the recent
past, ranked first in the emerging market infrastructures and operates on one
of the leading busiest airports globally, superbly connected and well-suited
for multi-modal transport. According to the World Bank's latest Logistics
Performance Index, the UAE has been ranked “13th” out of 160
countries which means that UAE supersedes countries like Canada, Finland, France,
Denmark and Australia; and on comparison with its emerging market peers, it is
ranked “first” cementing to its position as the leading logistics hub for rapidly
growing economies. Furthermore, in the years to come, with optimal integration
of logistics functions and harmonization of the GCC customs regulations; a
synchronized, coordinated, and interconnected regional logistics network is
bound to be formed in the region.
As per the UAE
Logistics Market Business Review, it has been explored that factors
such as economic diversification, amplifying domestic demand and holistic development
of export-oriented industrial centers and free zones are highly likely to continue
bolstering both trans-shipment and regional trade growth in UAE since these
factors are expected to undergo a certain level of amelioration as the years
roll by and thus, with improving trends; industry will prosper on its own!
Lately, The United
Arab Emirates has managed to retain its third position after China and India on
the 2018 Agility Emerging Markets Logistics Index mainly due to success being
experienced in Dubai since the logistics industry over there has been noticed
to be more promising about this sector unlike previous years. The UAE has
significantly tried to maintain a high ranking across several indices owing to
the abundance of free trade zones, no corporation tax, offer of full ownership,
and unlimited repatriation of profits that have well aided the region in establishing
a benchmark especially for the emerging markets. Consequently, the countries in
this region are moving vigorously to trigger non-energy economic growth, create
job opportunities, attract new investments, and develop knowledge economies.
According
to Ken Research Logistics and
Transportation Market Research Reports, it has been revealed that government investment plans and
infrastructure development initiatives are further expected to propel the
economic growth in UAE. Also, the logistics infrastructure has gain a lot of
popularity recently since UAE has emerged out evidently as a transshipment hub
for a successful Europe-Asia trade. Investments are being undertaken in full
swing at this time ultimately resulting in overall infrastructure development
which will as a result, embolden competitiveness of the logistics market. Particularly,
the investments connected to EXPO 2020 are anticipated to lure foreign
investments and thereby ameliorate the holistic investment climate that
prevails in the region.
Besides
that, the facts of 2017 have identified that the air freight volumes at Dubai
International Airport grew by nearly 5% and are further envisioned to surge at
a decent CAGR of about 3.2% by 2022. While at Abu Dhabi Airport, the air
freight volumes evolved by nearly 12% in 2017 and furthermore are anticipated
to prosper at a healthy CAGR of around 5.2% by 2022. These trends well depict
that the demand for these logistics services have multiplied in the recent
years and therefore in order to properly cater to the growing demands; several
initiatives have been undertaken for embellishing logistics parks as well as
free trade zones near airports and seaports.
Not only
this; the two leading airports of this region have rigorously made investments for
widening and enriching the associated logistics facilities in recent years. For
instance, Emirates Sky Cargo has recently launched a new pharmaceuticals facility
at Dubai International Airport in order to meet the spurring demands for
pharmaceutical and cold storage products. Going forward, this expansion of
cold-chain logistics services at both the airports is projected to raise the
air freight volumes in UAE. Thus, both Emirates along with Etihad Airways have
played a crucial role in air cargo in the UAE till now and will persist
contributing to augmenting cargo volumes in the coming years.
Majorly, UAE is observed to be at
the forefront of adoption of newer technologies due to which warehouses are
becoming automated with the support of robotics and automation, and the related
companies have been able to experiment on different autonomous vehicles and
drone deliveries for efficient and faster last mile deliveries. Additionally, a
horde of tech-based start-ups are mushrooming in the region offering robust
delivery solutions across various e-Commerce logistics segments and such hyper-loop,
drones, autonomous vehicles, block chain, robotics, and artificial intelligence
are further projected to completely transform the UAE logistics market in
future.
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Related Reports:-
Contact us:-
Ken Research
Ankur Gupta, Head Marketing
& Communications
0124-4230204
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