In recent years, Dubai has shown dramatic growth in logistics and as a result, has become an indomitable player in international trade and transport logistics. Government’s economic strategies and personnel who have undergone logistics training have contributed tremendously to the growth of logistics in India. But even with all the growth, Dubai has seen, there is still scope for logistics to grow in Dubai.
Dubai is one of the busiest sea-air multimodal transport hubs in the world today, owing to the cost-effective transport and lower freight cost. As a result, logistics saw incredible growth in the UAE and in 2009, they contributed 0.4% to the world’s total foreign direct investment (FDI). Despite the global economic crisis of 2008, Dubai’s logistics sector stood solidly with UAE’s re-exports and exports increased. Seeing the potential of logistics, the government kept on pumping more into it and today, UAE handles 70% of air cargo in the middle east.
The country has economic diversification plans due to which the logistics industry in UAE is undergoing structural changes. With this change, the scope for all non-oil economic sectors will improve, thereby improving the scope of logistics too.
This scope can also increase if the cargo security issue gets resolved. The government is working to improve the scope of logistics even more and the sector is projected to grow at a whopping 5.7% by the end of 2017.
UAE has long realized the potential and importance of logistics in the running of any business. Dubai, with its geographical advantage, remains to be a top player in logistics and a city of opportunities for those who have had logistics training.