COMMENT: Six trends that will shape the UAE logistics in 2018
The UAE has cemented its position as the leading regional logistics hub. The GCC market is expected to reach $66.3 billion by 2020, with the UAE and KSA at the forefront.
Agility’s annual report recently confirmed that the UAE has maintained its position as the third-best logistics hub among 50 emerging markets, and took the first spot for the quality of infrastructure and transport.
Abhishek Shah, Co-Founder & Group CEO of RSA Global shares his thoughts on 6 current and future trends that will shape the UAE sector in 2018 and beyond:
2018 is the year for blockchain, after the crypto’s had an incredible 2017 it will now bring to prominence the use of blockchain through people’s entire supply chain. We have seen the UAE government wanting to take the lead on this with for instance the launch of the Dubai Blockchain Strategy by HH Sheikh Hamdan Bin Mohammad Bin Rashid Al Maktoum in 2016, establishing a roadmap for the introduction of blockchain technology. I think we will see the private sector making a much larger push on this.
2) Air taxi’s
The RTA has already said the flying taxis will be launching soon. This will open the doors this year to the world thinking about the method by which courier and small packages can be delivered and taken forward.
3) Solar boom
Solar energy has proven itself as a viable and simple alternative for energy production. This year we will see a huge amount of solar coming online and deals being signed. This will hopefully impact the logistics sector by helping bring costs down.
4) Continued investment into infrastructure
The UAE on multiple level continues its investments into infrastructure that is vital to boost trade, roads, sea ports, air ports and rail networks. With this continuing and more coming online in the UAE this will only improve the opportunities and channels of trade for the UAE.
5) The innovative supply chain providers shall survive
The last 24 months have seen challenging times in the region and have brought to light a lot of the business models that will not be sustainable in the long term. I feel in 2018, we will see a lot of consolidation or liquidation of businesses that will not see the test of time. Leaving behind the innovative supply chain providers to take on the customers challenges.
6) Al Maktoum International Airport
We expect tremendous growth in cargo volumes through DWC in 2018 and this will be driven by the continued growth at DXB as well as the maturing of the Dubai Logistics Corridor and introduction of partnerships in 2017 such as Emirates and CargoLux.