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Infrastructure Development and Economic Diversification to Open up Opportunities in the Freight Transportation and Warehousing Segments
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Economic diversification and transportation infrastructure development are the two key drivers of economic and logistics industry growth in the MENA region. The region has emerged as a major transshipment hub, with its strategic location advantage and improvement in air and sea port infrastructures. A growing middle class, changing consumer preferences, and rising economic prosperity are expected open up new opportunities during the forecast period. Rapid growth in eCommerce is expected to increase the demand for modern warehouses with advanced IT and digital solutions. Moreover, an increasing number of FMCGs, which are typically a significant contributor to economic growth in the region, are expected to increase the demand for modern warehouses. This is likely to transform warehousing services in the region, specifically in areas of inventory management, cargo loading, order picking, and real-time monitoring of stocks. Establishment of cargo villages and logistics parks would facilitate goods traffic to East Africa, Central Asia, and the GCC region.Technology adoption in the transportation sector is more advanced compared to other emerging economies in the region. Paperless customs clearance, cargo and container tracking, and advanced cold chain transportation are some of the areas benefiting from the increased use of technologies. In order to have a competitive advantage, logistics companies are expected to prepare themselves for this change, offer a wide range of services, and make more in technology-related investments.The MENA region offers long-term business opportunities in the areas of transportation, warehousing, and freight forwarding. This research service shed light on the economic and logistics trends in Saudi Arabia, United Arab Emirates, Egypt, Turkey, and Pakistan. The study period is from 2012 to 2018. Scope The aim of this insight is to research and analyze the key developments and trends related to economy and trade and the freight, transportation, logistics, and warehousing sectors in the MENA region. Objectives • To provide an overview of the key factors driving economy and trade • To analyze the role of the transport and logistics sector in driving the region’s economic growth• To identify the initiatives undertaken by the government to improve efficiency and reduce logistics costs • To furnish a detailed analysis on the advances in digital technologies • To provide an in-depth analysis of how the traditional value chain is transformed as a result of technological advances, e-Commerce growth, regulatory changes, and investment • To identify the emerging opportunities as a result of economic and technology transformations and how they are expected to change the competitive environment
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