The UAE ranks on the top overall as the most serious emerging market in GCC, as per the annual Agility Emerging Markets Logistics Index.
The UAE was on the top in all three individual sub-categories in the region. “This reflects the UAE’s commitment to strengthening its business environment in the non-oil sectors and successful implementation of the comprehensive national SME development strategy,” Agility Global Integrated Logistics (GIL) said.
In the terms of business fundamentals, Gulf countries were more important. The UAE was No. 1, then comes Saudi Arabia (3), Qatar (4), Bahrain (7), Oman (8), and then Kuwait (11). Nearby Jordan was 10th. China, India, and Indonesia rank highest for domestic logistics; China, India, and Mexico are among the main for international logistics.
“Gulf countries are pushing hard to diversify and integrate their economies by developing world-class infrastructure and creating fair, transparent conditions for business,” said Elias Monem, GIL CEO for Middle East & Africa.
“Good infrastructure and stable business conditions are areas of huge competitive advantage for the Gulf region. They will be key to recovering from the economic downturn brought on by the pandemic,” he said.
The Index, currently in its 12th year, ranks 50 countries by features that provide them attractive to logistics providers, freight forwarders, shipping lines, air cargo carriers, and distributors.
China, India, and Indonesia were top in the index, whereas three Gulf counties made the top 10: UAE (4), Saudi Arabia (6), and Qatar (9).
“Logistics is one of the key economic drivers for the UAE and because of its strategic location and excellent infrastructure, I expect UAE to be the Logistics hub,” Saad Maniar, senior partner at Crowe UAE.
Sachin Gupta, general manager of Gulf Pinnacle Investments (GPI), the UAE subsidiary of Gulf Pinnacle Logistics, said the UAE has developed excellent infrastructure for the logistics industry, which is being expanded continuously.
“World-class infrastructure added to its proximity to the world makes UAE an attractive logistics hub. The government’s initiatives such as World Logistics Passport, conducive economic policies, ease of doing business, and stable business environment have successfully attracted global brands and the UAE will continue to be among the top logistics hubs of the world,” Gupta said.
An intriguing finding of the overview is that in any event, when makers think about facilitating reliance on China, hardly any organizations intend to bring percent of industry chiefs studied say migrating creation from China would mean reshoring to their nations of origin. Vietnam (19.6 percent), India (17.4 percent), and Indonesia (12.4 percent) are the main decisions for movement, trailed by Thailand (10.3 percent) and Malaysia (9.6 percent), as per those reviewed.
While whole prices are bringing overall changes in production supply chains, today low-cost labor is scarcely a thought for developing business sectors venture — with 2.2 percent of industry executive’s saying it’s important. Executives provide that main features are government bureaucracy and regulation(25.8 percent); infrastructure quality (14.1 percent); and supply of skilled labor (8.0 percent). As organizations look at new creation areas, they say their greatest concerns are the deficient foundation (14.5 percent) and extra expense (13.5 percent).
The local Gulf economy could get a lift because of the strategic advancement that finished Saudi Arabia’s three-year monetary bar of adjoining Qatar in late 2020. That could prompt more tight reconciliation in an area where cross-line exchange, shipping, and web-based business are developing significantly.
The countries increasing their domestic logistics strengths the most are Malaysia, Nigeria, Vietnam, Iran, Uruguay, Myanmar, and Cambodia. The biggest stalk in international logistics arrives from Morocco, Ukraine, Kenya, Myanmar, and Paraguay.
Alongside the Index, Agility overviewed in excess of 1,200 inventory network experts for their perspectives on the interruption brought about by the Covid-19 pandemic. Of the chiefs reviewed, 44.7 percent see a the Middle East/North Africa recuperation in 2021; 38.9 percent say a recuperation for the area will not occur until 2022-2024. A lion’s share anticipates Asia, North America, and Europe to bounce back this year.