- Strategic location between East and West
- 61 per cent of cargo destined for GCC states arrives via the UAE’s seaports
- The UAE E-Commerce market is expected to grow by 23% annually between 2019 – 2022
Positioned in a highly strategic location, between East and West the UAE has been able to establish itself as world-class hub for international commerce, particularly through its focus on logistics. This strategic geographical location has led to the emergence of UAE as a major multimodal transit and re-export hub.
Exploiting the opportunity afforded by being placed on a transcontinental trade route, the UAE has become as the regional leader in logistics and caters to the trade demand from Europe, Asia, Africa, USA and the Middle East. This, in addition to an extremely progressive approach to foreign investment and an extensive double taxation treaty regime the UAE has become a highly enticing country of opportunity for foreign businesses.
The success of the country’s two primary airlines, Emirates and Etihad both in international travel and as world leaders in freight has helped propel the nation forward in the eyes of the international community.
Despite a recent global downturn in the demand for air freight as a result of the trade war between the US and China, industry leaders remain hopeful that the market will bounce back in 2021 as the global political landscape shifts once more. With that in mind, the UAE’s two leading airports have been investing and expanding their facilities whilst Dubai has recently opened a third cargo and passenger airport, Al Maktoum international Airport. When completed it will become the world’s largest airport with a capacity of more than 160 million passengers and 12 million tons of cargo per annum. The airport forms the heart of a greater project, a 140 square kilometre multiphase development of six clustered zones including Dubai Logistics City (DLC), Commercial City, Aviation City Residential City, and Golf City.
In conjunction with the air freight sector the UAE has established a robust seaport infrastructure. According to the World Shipping Council, two of the world’s top 50 container ports are in the UAE, with Dubai featuring among the top ten. Overall, 61 per cent of cargo destined for GCC states arrives via the UAE’s seaports emphasising the country’s importance to the region.
One of the fastest growing sub sectors of the logistical industry is the E-Commerce sector. The UAE E-Commerce market is expected to grow by 23% annually between 2019 – 2022 because of economic diversification, increasing digitalization, expected rise in manufacturing industries and rising purchasing power of the population in UAE. As a result, the UAE has identified that the investment in new technologies will be key to the growth of the logistics sector and to keep up with the growing demand from the domestic and international markets. Examples of this are automation of warehouses with the aid of robotics, autonomous vehicles, and drone deliveries.
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