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Government investment plans and infrastructure development initiatives are expected to support economic growth in the UAE. Despite uncertain regional economic conditions and low oil prices, UAE has managed to dampen the effects of such uncertainties with the help of economic diversification initiatives undertaken by the government. Logistics infrastructure is increasingly becoming important due to UAE’s emergence as a transshipment hub for Europe-Asia trade. Investments are being made in infrastructure development which is expected to strengthen the competitiveness of the logistics market. Investments related to EXPO 2020 would attract foreign investments and further improve the investment climate in the country. In order to handle the increasing demand for logistics services, several initiatives have been undertaken to develop Logistics parks, Free Trade Zones near airports and seaports. Airport and sea port modernization are being undertaken with a view to automate the existing processes, one such example being virtual corridor in Dubai, which is an automated customs procedure connecting seaports, airports, and free zones on a single platform, enabling free movement of goods, and making the processes more efficient.UAE is at the forefront of adopting new technologies. Warehouses are becoming automated with the aid of robotics and automation, and companies are experimenting on autonomous vehicles and drone deliveries for efficient and faster last mile deliveries. Many tech-based start-ups are emerging with robust delivery solutions across various eCommerce logistics segments. These start-ups help eCommerce companies, as well as the traditional brick and mortar stores, deliver at low costs. Hyperloop, drones, autonomous vehicles, Block Chain, robotics, and Artificial Intelligence are expected to transform the logistics market during the forecast period.
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 UAE.
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