Deemed the backbone of any economy, the logistics sector holds a significant place for UAE and its capital, Dubai. As per a study by ADQ-a Abu Dhabi-based investment and holding company, the UAE logistics market is predicted to grow by 8.41 percent annually to reach USD 31.4 billion by 2026. Contributing towards this growth, the Emirates capital has invested in world-class infrastructure and strengthened its logistics capability, reinforcing its status as a major gateway for the global trade sector.
The region is blessed with a strategic geographical location between the east and west, making it a favourable site to connect and service the two corners of the world by road, air, and sea.
Further helping Dubai emerge as a leading hub for trade and logistics is its infrastructure which includes world-class roads, ports, and airports to its central location. The low-cost logistics facilities, free-trade policies and agreements, and increasing investments and trade links make the city a profitable gateway for entities.
Air:
Dubai gives easy access to two crucial airports namely, the Dubai International Airport-one of the busiest airport in the world with connectivity to almost 240 destinations worldwide, and Al Maktoum airport at Dubai World Central (DWC)-set in the south of the city.
The Dubai International Airport citing a year-on-year increase of 25.3%, managed 581,972 tonnes of air freight in Q3 of 2021, however, in 2022 a decrease of 18.9% was witnessed in cargo handling capacity as major freight operators moved back to DWC, which is set to be the airport of the future.
DWC, on completion, will have the capacity to handle more than 160 million passengers and 12 million tonnes of cargo annually. Dubai also boasts of the airfreight division of the Emirates Group, Emirates SkyCargo, which is the world’s largest cargo airline. It flies to about 50 dedicated freight locations and transports essential supplies, thereby facilitating global trade through its multi-airport hub, Emirates SkyCentral, in Dubai.
Sea:
The city is among the top 5 shipping hubs in the world. Jebel Ali Port is the 10th largest port in the world and the largest in the Middle East. The port handles most of the city’s marine operations. Operated by DP World, the port can handle 19.3 million TEU and serves as the commercial gateway to GCC, and serves key markets like the Indian subcontinent, Africa, and the Gulf. Many companies have set up their base here to cater to the Middle East market by leveraging the connectivity provided by Jebel Ali Port.
Road:
Between 2006-2018, Dubai invested near about USD 30 billion to build a world-leading infrastructure. Connecting Dubai locally to other countries, the city’s interlinked highways make transportation of goad via road a fast, profitable, and efficient process. The city’s road network includes a custom-bonded road between Jebel Ali Port and Dubai World Central that covers the Al Maktoum International Airport.
Free Trade Zones:
The city has set its sight on the future of logistics and brought together industry leaders in the transport and logistics sector. Its influence as an international and regional trade hub has created a thriving ecosystem for logistics start-ups with free zones like:
- JAFZA– The free trade zone offers a range of features for businesses like a digital networking platform, storage facility, and ready-to-move-in offices.
- DUBAI SOUTH– It hosts an advanced airport-seaport corridor that enables the transport of cargo from the port to the airport in 20 mins.
- DAFZA– The free zones’ regulatory and tax environment offers businesses total ownership, along with direct access to the Dubai International Airport
Tech
The city is driving the future of logistics through the development of techs like hyperloop – a high-speed transportation system designed to travel 10 mins faster than traditional trains.
DP World is applying the latest in technology and innovations at the Jebel Ali Port offering global supply chain solutions for port-centric and cargo logistics, maritime services and marinas, and free trade zones.
It is using a new High Bay Storage (HBS) system to offer storage solutions for containers in Ports. BoxBay enables each container to be placed in an individual rack up to 11 stories high, thereby increasing the terminal’s storage capacity.
World Logistics Passport (WLP)
Dubai leaping to facilitate an efficient logistics sector has taken a key initiative called the World Logistics Passport (WLP)- a first-of-its-kind inclusive freight loyalty program. The program Under the Dubai Silk Road strategy will remove trade barriers, enhance existing trade routes and create new ones whilst strengthening global supply chains – all in a bid to improve and facilitate trade between countries.
WLP offers various benefits from fast-tracking cargo movement to advancing cargo information and reducing administrative costs. Covering the expanse of the entire trade network—from logistics to freight and trade finance—and connecting governments to service providers, it is opening doors to more trading opportunities between emerging markets. It is also easing the movement of goods between various countries and manufacturing hubs around the world thereby.
