27 February, 2020
UAE retains top ranking in Logistics
The Agility Emerging Markets Logistics Index 2020 was released in February 2020, and witnessed UAE retain its 3rd rank globally, and 1st rank in the region.
UAE was observed to have improved on the sub-index of business fundamentals, and it was the only country to be ranked within the Top 10 of each of the sub-indices – Domestic Opportunities, International Opportunities and Business Fundamentals.
Reasons for the consistent performance of UAE on this index include the Government support for SMEs through an extensive programme, transparency of the regulatory system, framework for protection against corruption and openness in the financial sector. The e-Commerce market, pegged to grow at 19.1% annually by 2023, is cited as the key reason for the growth in domestic logistics opportunities.
With a gross output of AED 219 Billion in 2018, the UAE logistics industry contribution to GDP is expected to grow to 8% by 2021, from the current ratio of 5.4%.
Globally, the first 2 positions were held by China and India. Other countries in the Top 10 include Indonesia, Malaysia, Saudi Arabia, Qatar, Mexico, Thailand and Turkey. Within the region, UAE is followed by Oman (14th global rank), Bahrain (15th global rank) and Kuwait (19th global rank).
UAE launched the initiative of a World Logistics Passport at the World Economic Forum held recently in January 2020. The initiative provides the ability to link DP World, Customs World and Emirates Group for enhanced logistics efficiency and connectivity.