As according to the Agility Emerging Market Logistics Index, the UAE is positioned number one overall, as it has emerged as most competitive GCC’s emerging market.
The UAE-Second biggest Arab League economy has also topped the three individual sub-indices within the territory. As per the statement by Agility Global Integrated Logistics (GIL), it stated that: “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.”
Elias Monem, GIL CEO for Middle East & Africa stated that: “Gulf nations are pushing hard to diversify and integrate their economies by developing world-class infrastructure and creating fair, transparent conditions for business.”
Gulf nations have conquered topmost spots within the business fundamental arena. The UAE was in the topmost position at No.1 spot followed by Saudi Arabia in 3rd position, Qatar at 4th position, Bahrain at 7th position, Oman at 8th position, Jordan at 10th position and Kuwait at 11th position.
China, India as well as Indonesia were graded at peak for native logistics, and China, India as well as Mexico were at top for global logistics.
The Index, now within their 12th year, grades 50 nations by factors that make them striking to logistics providers, freight forwarders, shipping lines, air cargo carriers and distributors.
He also stated that: “Better 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.”
China, India and Indonesia surpassed the index, while three Gulf countries made to the top 10: UAE (4), Saudi Arabia (6) and Qatar (9).
Saad Maniar, senior partner at Crowe UAE stated that “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.”
An exciting finding of the survey is that even when manufacturers consider enabling necessity on China, few firms plan to bring percent of industry administrators surveyed say repositioning production from China would mean reshoring to their household nations.
Vietnam (19.6 per cent), India (17.4 per cent) and Indonesia (12.4 per cent) are the principal choices for relocation, followed by Thailand (10.3 per cent) and Malaysia (9.6 per cent), according to those surveyed.
Sachin Gupta, general manager of Gulf Pinnacle Investments (GPI), the UAE subsidiary of Gulf Pinnacle Logistics, stated that the UAE has established an outstanding infrastructure for logistics industry, which is being prolonged incessantly.
Gupta further stated that “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.”
The provincial Gulf economy could get an enhancement as an outcome of the embassy revolution that concluded Saudi Arabia’s three-year economic barricade of neighbouring Qatar in late 2020. That could lead to tighter incorporation in a territory where cross-border trade, trucking and e-commerce are mounting dramatically.
The nations enlightening their native logistics fortitude the most are Malaysia, Nigeria, Vietnam, Iran, Uruguay, Myanmar and Cambodia. The major strides in global logistics came from Morocco, Ukraine, Kenya, Myanmar and Paraguay.
While total cost is having powerful overall shifts in manufacture supply chains, today low-cost labour is barely a reflection for evolving markets investment — with only 2.2 percent of manufacturing executive’s saying it’s imperative.
Executives stated that the most imperative factors are government bureaucracy and regulation (25.8 percent); infrastructure superiority (14.1 percent); and source of skilled workforce (8.0 per cent). As businesses examine original production locations, they stated that their major concerns are inadequate infrastructure (14.5 percent) and additional charges (13.5 percent).
Along with the Index, Agility measured more than 1,200 supply chain professionals for their opinions on the disruption produced by the Covid-19 pandemic. Of the executives surveyed, 44.7 percent witness a Middle East/North Africa recovery in 2021; 38.9 percent stated that a recovery for the territory won’t take place until 2022-2024. A majority expect Asia, North America and Europe to ricochet this year.