TALAH TURK (ABU DHABI)
The UAE emerged as a beacon of economic progress, innovation, and sustainability in the Middle East, according to the Agility Emerging Markets Logistics Index 2024.
Vice Chairman of Agility, Tarek Sultan, said: “Saudi Arabia and UAE stand out as bright spots, separating themselves from competitors and neighbours through investment, innovation, sustainability and business-friendly reform. Likewise, there’s growing acceptance of digital freight options, along with increasing recognition by businesses of the need to get serious about their climate strategies.”
The UAE, closely following Saudi Arabia, is experiencing remarkable progress in diversifying its economy over the past decade. According to the report, the UAE came second at 26.7% progress among GCC countries.
UAE Placement in Different Rankings
The UAE secured a commendable third place worldwide in the overall ranking with a score of 6.49. Ranking first among Arab countries, the UAE came ahead of Saudi Arabia (6th place) and Qatar (7th). Globally, it followed China (1ST) and India(2ND) but came ahead of Malaysia(4th) and Indonesia (5th).
Domestic opportunities (measures an emerging market’s performance and its potential to sustain and develop domestic demand that requires competitive logistics markets) stood at 5.52, international opportunities (measures internal and external demand for trade-intensive logistics services and the capacity of individual emerging markets to facilitate cross-border logistics operations) at 6.10, business fundamentals (a measure of openness, robustness, fairness and strength of the business environment, rule of law and market independence) at 8.71, and digital readiness (measures an emerging market’s potential and progress in becoming a digitally-led, skills rich, innovation-oriented, and sustainable economy for the future) at 6.88.
In terms of business fundamentals, the UAE claimed the top spot globally and regionally and secured the second position globally and the first position regionally in digital readiness.
It ranked fifth globally and second regionally in terms of domestic opportunities, as well as seventh globally and second regionally in international opportunities.
Environmental Sustainability Leadership
The report highlighted the UAE’s dedication to environmental sustainability, referencing the Middle East and Africa Environmental Sustainability Scorecard released by Agility in November. The UAE, along with South Africa, Egypt, and Saudi Arabia, was recognised for leading efforts to combat climate change in the Middle East and Africa.
In green investment, high- and middle-income countries, including Qatar, the UAE, Morocco, and Saudi Arabia, were noted as the frontrunners. The UAE also showcased excellence in waste management, contributing to a circular economy by cutting waste, lowering consumption, and promoting recycling and sustainable production.
SME Growth and Economic ContributionsIn the UAE, Small and Medium Enterprises (SMEs) constitute a significant portion, accounting for 63.5% of the non-oil GDP. The country aims to increase the number of SMEs to one million by the end of 2030, thereby boosting their contribution to the economy, the report mentioned. This initiative aligns with the broader trend in GCC nations, which have streamlined their business processes, making them attractive destinations for multinational corporations.
The report emphasised the substantial investment in the UAE and Saudi Arabia among Middle Eastern countries. While the UAE and South Africa were the pioneers in significant data centre investments, while other markets, such as Saudi Arabia, Kenya, Nigeria, and Egypt are witnessing growing investments in this sector.
The UAE claimed the top spot globally and regionally in terms of business fundamentals,
It secures the second position globally and the first position regionally in digital readiness.