Economic diversification promotes the growth of logistics services in the UAE

Hossam Abdel Nabi (Dubai)

Experts working in the country’s logistics and supply chain sector have identified a number of factors that represent a locomotive for the growth of the sector, including national visions to support economic diversification in parallel with the acceleration of the increase in the number of young people, and the targeting of doubling the economic contribution of the industrial sector three times over the next ten years, along with Accelerating developments in giant projects to link seaports with major transport hubs in the world.
The growth of the logistics and supply chain sector in the UAE is accelerating over the next year, as the logistics industry in the UAE is expected to grow to $31.4 billion by 2026.
Dr. Sherine Nassar, Global Director of Logistics Studies at Heriot-Watt University Dubai, expects the logistics industry in the UAE to grow to $31.4 billion by 2026. Sector growth
She said: It is also expected that the sector will continue to grow at a rapid pace with continuous developments, such as the development of the railway network to connect seaports, major transport hubs and the global private sector (led by the Global Logistics Passport initiative, and initiatives such as the Dubai Industrial Strategy 2030 and Abu Dhabi Vision 2030). Noting that despite this growth, there is a need to stimulate the industry to invest in people, harness the potential of technology and integrate sustainable strategies, with the need for companies to have the right ways to access the available data, which is of paramount importance to the logistics industry, and use it to make the right decisions.
Nassar emphasized that to continue growing in the industry, business leaders in the logistics sector must focus on talent, collaboration and sustainability to scale their business in 2023.
And she stated that with regard to the performance and trends of the logistics sector and supply chains in 2023, it should be noted that the data of the UAE Ministry of Economy reveal that the first quarter of 2021 witnessed the largest amount of financing collected in the logistics industry in the Middle East and North Africa region on Over the past four years, it has increased year-on-year by 179%, indicating that sector-wide digital transformation has evolved, organizations have restructured their business models and adopted a more flexible approach to remain competitive and stay relevant to changes in the industry.
sustainable advantage
Nassar explained that companies with flexible supply chains enjoy a sustainable advantage, especially during the unprecedented logistical disruptions caused by the pandemic, and by adapting to new standards, companies have learned the need to review existing business job models, reorganize their work and redefine the roles and skills of their workers.

talent gap
According to Dr. Shereen Nassar, the logistics sector is evolving due to the ongoing digital transformation, along with the pressures of sustainability and compliance to decarbonize new practices.
She said: The talent gap and talent retention was already one of the biggest challenges facing logistics and supply chain leaders, and this challenge will continue in the coming years, noting that as a result, there is an increasing need for talents who are capable and equipped with knowledge of comprehensive logistics and skills related to supply chains, especially as the most demanded professions In logistics services sectors require specific knowledge and skills in the form of technical training, short courses, university degree or master’s degree for higher roles in supply chain and logistics management. Moreover, the professional requirements of the sector need advanced educational programs to deal with constant changes and disruptions that require skill refinement. individuals and their rehabilitation.
Regarding his expectations for the future performance of the supply chain sector, Hussein Hosni, founder and CEO of Grocart, expects to witness an accelerated level of investment, as companies seek to enhance planning capabilities in the supply chain by adopting more advanced digital enablers, such as knowledge planning. And predictive analytics that rely on artificial intelligence, as well as adding greater transparency and visibility to secure supply chains using advanced tracking and tracking techniques and “blockchain” technology.

growth opportunities
For his part, Kerry Kotsikos, Vice President and General Manager in the Middle East and Africa at Infor, confirmed that there are great growth opportunities within the distribution and logistics sector in particular in the GCC countries and Egypt, where national visions work to support growth and economic diversification in parallel with the acceleration The pace of the increase in the number of young people, to drive the demand for logistics services and supply chains in the region, as evidenced by the UAE’s targeting of doubling the economic contribution of the industrial sector three times over the next ten years, through the “300 billion project” strategy.

supply chains
Kotsikos stated that there is a possibility for distribution companies and supply chains in the Middle East to achieve huge growth in the coming years in conjunction with the growth and diversification of the region’s economies, pointing out that in order to achieve this, these companies need to overcome major obstacles to their true digital transformation.
Kotsikos explained that, according to a survey issued by IDC Research, commissioned by Infor, there is a demand from distribution companies and supply chains in the Middle East to adopt a digital-first approach in order to take advantage of the huge growth opportunities available in the region, noting that the study She highlighted major challenges facing many of these companies in this context, including lack of clarity in supply chains, lack of digital skills, and reliance on outdated technical systems.

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