logistics and transport

UAE Economic Growth Boosting Logistics Sector

Sultan Ahmed Bin Sulayem, the DP World Group Chairman and CEO has issued an optimistic forecast fot the country’s sector, on the back of rising trade and economic growth in the UAE. He believes that recent growth forecasts for the UAE will bring uplifting prospects for the country’s logistics, warehousing and handling sectors.

UAE trade growth is expected to rise by 4.3 percent year in 2017, driven by a 5 percent growth in imports and 3.7 percent growth in exports . The report sees a good economic growth over the next five years for the UAE due to government plans to diversify the economy through the development of trade, tourism and the service sector.

This will attract more businesses and job opportunities to the country who will need logistics support.

Presently there are 328 logistics companies operating within Jafza (Jebel Ali Free Zone) with trade partners in GCC, India, Africa, West Asia and China broadening the opportunities for logistics companies. The location of Jebel Ali Port and the Free Zone with a range of incentives and mordern warehouses supports the development of logistics and transport sector with companies aiming to reach their target markets in the greater MENA Region.

These companies let 4.2 million square meters of mixed-use facilities, having 4.13 million sq m as land; 85,700 sq m of warehouse and light industrial units , and showrooms and offices of 1,600 sq m .

Some key trends identified in UAE logistics industry are:

Growing domestic demand ,Economic diversification, and development of export oriented industrial centres and free zones are likely to support both transhipment and regional trade growth.

Transportation infrastructure development and new technology solutions will probably strengthen the infrastructure required for the multi-modal transportation system

The GCC rail network and the airport expansion will strengthen alternate mode for freight and cargo transportation

Dubai’s 14 per cent GDP constitutes logistics industry which is highest amoung all emirates. The geographical position and improved infrastructure of dubai facilitate a substantial share of international shipments directed to the UAE.

“The studies reveal that these will open up new markets for companies operating in Jafza and Dubai”.


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