Dubai’s Ever-Growing Transport And Logistics Sector
The Government of Dubai is increasingly investing in the non-oil sectors. The Logistics and Transportation sector in Dubai is being funded exponentially, in anticipation of the Dubai Expo 2020. The contribution of the Logistics and Supply Chain sector to the Emirate’s overall GDP is around8% and is projected to grow at a steady pace.
The Dubai Expo 2020 is a major business event and 190 countries have already enrolled to participate in it. The World Expositions are held once every five years, and after being held at the major futuristic cities of the world, like Milan and Hannover, the Expo has come to Dubai. Dubai’s growing markets and the increasing GDP has attracted many start-ups and angel investors in the past. Now, with Expo 2020 and an estimated 25 million visitors in the city, the economy is expected to get a significant boost.
With the decline in oil prices being a concern, the federal government decided to invest in non-oil sectors like hospitality, tourism, logistics, and transportation. In fact, the logistics and transportation sector is expected to contribute about 8% of the total GDP of the UAE.
Dubai – A Nexus For Transportation
Dubai is a central hub for the MENASA markets as well as the other emerging markets from all over UAE. Dubai’s Al Maktoum airport has seen a steady rise in air freight and has become a hub for the logistics industry. The airport has an annual capacity of about 2.5 million tons which can be increased to about 6 million tons. Dubai has the world’s ninth-largest port, the Jebel Ali Port, which can efficiently carry out huge cargo shipments, making it a preferred center for transportation and logistics. The emirate also has excellent policies to support the logistics industry.
Logistics And Supply Chain In The Region
Dubai’s flexible policies for the transportation and freight forwarding sector have led to rapid growth. New-age technology and digital transformation have strengthened the sector and boosted its contribution to the GDP. The sector has also leveraged artificial intelligence and mobile applications to create accessible and easy-to-use modules. Consumers have found the digital approach to be convenient and subsequently, foreign investments in the sector have increased remarkably and are likely to grow further in the future.
Dubai Expo 2020 – A Blessing For The Logistics Sector
The Dubai Expo will be held from 1st October 2021 to 31st March 2022. This business event is going to host millions of visitors and organizations and provide everyone present with an excellent opportunity to network at a global level. The theme for the expo this year is Opportunity, Mobility, and Sustainability, with a futuristic approach towards creating better business solutions.
The expo is expected to provide the logistics industry with an exceptional opportunity, with the government of the emirate investing significantly in it. Looking at the larger picture, the logistics and supply chain industry is here to grow. With effective digitalization, many policies and plans in the pipeline, and the Traffic and Transportation Plan 2030, the industry could be looking at a bright future.
Want to know more about Expo 2020? Download our specially-curated guide from here.