Logistics activity fuels UAE economic growth
Increased activity from the logistics industry is fuelling an economic recovery in the UAE, reports Gulf News.
Pointing to figures released by the Institute of International Finance (IIF), the UAE’s gross domestic product has been revised to 4.4 per cent, from its earlier forecast of 3.8 per cent.
"Most indicators of economic activity have registered a significant rise in real terms in the first half of this year. Crude oil production increased by 8 per cent as compared to the same period last year. With the exception of real estate, other sectors are also performing well. This has prompted us to revise our forecast," said Garbis Iradian, deputy director of IIF's Africa/Middle East Department.
According to the IIF estimates, a surge in infrastructure spending in Abu Dhabi and Northern Emirates and increased activity in logistics, tourism, retail trade, and transport, in Dubai will support the nearly 1 per cent upward revision in UAE's GDP forecast, Gulf News reports.
The UAE is investing significant amounts of capital into the logistics sector with a number of infrastructure developments including the ambitious UAE rail network, and Kizad, currently under construction.