Procurement and Supply Chain Professionals

Friday, 2 September 2011

Can the UAE stay no.1 in Middle East Supply Chain?

With a prime location on the global map, there’s little doubt that the UAE has successfully capitalised on its potential as a world-class logistics hub, with billions of dollars being invested in the fast-track development of warehousing facilities and transportation infrastructure. However, as the logistics potential of neighbouring countries such as Saudi Arabia, Oman and Bahrain continues to flourish, will there be a struggle ahead for the UAE to retain its lucrative position as a market leader? Perhaps not. According to recent analysis from Frost & Sullivan, the first-mover advantages of emirates such as Dubai, Sharjah and Abu Dhabi would be difficult to replicate in the short-term. In fact, revenues from the UAE’s logistics market are expected to reach US$9.40 billion in 2014, an impressive jump from last year’s figure of $7.03 billion. “Being located in close proximity to the high-growth economies of India and China, the UAE imports around 60% of its products from these countries, mostly transiting through the UAE borders, thus, the country has a unique advantage over its Middle Eastern neighbours and has been able to establish itself as a centre for trans-continental trade.” Redimo Ltd are the number one source for global supply chain news and jobs.