The National: ADQ Expects UAE Logistics Industry to Reach $31.4 Billion by 2026
According to Abu Dhabi’s holding firm ADQ, the United Arab Emirates (UAE)'s logistics business will increase at a compound annual growth rate of over 8.4%, reaching $31.4 billion by 2026. ADQ stated in a white paper on Tuesday that the burgeoning industry presents a wealth of potential and investment prospects to boost digital capabilities in the UAE, contributing to the region's economic productivity and long-term growth.
In a survey conducted by logistics firm Agility in February, UAE was recognized as one of the top three logistics hubs in developing markets thanks to its improving digital infrastructure and enhanced business climate. The Agility emerging markets logistics index ranks nations based on their logistical strengths, business climates, and digital readiness to determine their overall competitiveness.
The rapid growth of UAE'S online retail over the past two years has forced a transition toward digitalization in its logistics industry. Logistics firms have been urged to "prioritize optimal distribution through automation, internet of things, blockchain, and innovative warehouse management practices," ADQ said.
According to the ADQ report, there are five key factors driving the development of a data-driven, globally integrated logistics network in the region. These drivers include digitalized contacts with customers, more door-to-door business, improved data ecosystems, and public-private collaborations. "With improved efficiency and resilience in the supply chain, tomorrow’s logistics industry will protect trade flows and facilitate the rapid movement of goods both consumers and industries rely on,” ADQ added.
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