The UAE, Saudi Arabia, and Qatar remain among the world’s top 10 emerging markets for logistics, according to the Agility Emerging Markets Logistics Index. The report ranks 50 markets based on their overall competitiveness, and the UAE secured the third position globally, followed by Saudi Arabia at sixth place and Qatar at seventh. However, Oman, Bahrain, and Kuwait have experienced a decline in their rankings.
Experts attribute the steady growth of the UAE logistics market to the rapid expansion of e-commerce and international trade. The market, which is currently estimated at $20.3 billion, is projected to reach $27.51 billion by 2029. The report also highlighted the UAE and Saudi Arabia’s leadership in economic diversification, reducing reliance on oil and gas income.
The survey revealed that half of the logistics professionals anticipate a global recession in the coming year, citing higher costs, reducing dependence on sourcing from China, and investing in Africa despite perceived higher risks in emerging markets. The report also indicated that China, the world’s leading producer, stands to be most affected by supply chain changes, with over 37% of industry professionals planning to move production or reduce investment in the country.
Overall, the report emphasizes the need for businesses to remain agile and use data to inform decision-making in emerging markets. Supply chain managers need to come to terms with the political and economic instability characterizing the post-Covid global economy. Geopolitical relationships are changing rapidly, and this is having a significant impact on international trade and risk profiles. Therefore, businesses need to be aware of the opportunities and threats that exist in emerging markets and use data, such as that of the Agility Emerging Market Logistics Index, to inform agile decision-making.
