Dubai set to be among top hubs for logistics
Dubai will soon be among the top logistics hubs in the world as global companies are outsourcing their manufacturing processes, experts say.
“The transport and logistics sectors represent an important part of the UAE economy, comprising 10.4 percent of non-oil GDP,” Nabeel Ebrahim, Abu Dhabi University Chancellor, said. As the UAE has witnessed tremendous growth and diversification in its economy, logistics in particular has had great success as one of the first industries to develop international growth.
Ebrahim said that Dubai’s infrastructure, including transportation (seaports, airports and roads), energy, communications and tourism represents a strong asset and plays an important role in encouraging companies to set up base in the UAE. Ebrahim said logistics and transportation give the UAE an opportunity to leverage its strengths while diversifying its economy and building global competitiveness.
Sashi Shekhar, Supply Chain and Logistics Group founder and group president, said that by 2020, aviation and shipping as well as logistics will be quite significant and will highly contribute to the UAE economy. “The UAE can be one of the top five countries and lead the world in logistics and supply chain since it is ranked 11th in the world in terms of technology adoption to the market,” he said.
Mohammad Nasser Otaiba, director of freight in the Abu Dhabi Department of Transport, said the rates of international trade of non-oil commodities in the UAE has reached more than Dh240 billion between 2007 and 2008, accounting for more than 30 percent the country’s GDP.