The United Arab Emirates (UAE) is still the third highest ranking emerging market for trade and logistics due to the continued power of Jebel Ali Port and the domestic free trade zones.
According to the Agility Emerging Markets Logistics Index, the UAE has successfully positioned itself as a global trade and logistics hub.
Jebel Ali Free Trade Zone allows foreign companies to own up to 100% equity, as well as be exempt from import and export taxes, meaning the area has become a busy hub of international trade.
Jebel Ali has also benefitted from solid financial backing, with the UAE government investing heavily in equipment and infrastructure in the region.
Continuing logistics projects also include the US$3.5 billion Al Mafraq-Al Ghuwaifat road upgrade and the construction of 1,200 km rail network that will further benefit Jebel Ali, and by extension, the UAE.
The report reads: “The third-place ranking of the UAE is a result of exceptional performance in the business fundamentals sub-Index, combined with solid development of domestic and international logistics markets.
“The UAE is trying to position itself to be the region’s e-commerce hub by encouraging new businesses and start-ups such as Shipa.com and luring global talent and investment through ambitious projects such as Commercity in Dubai.
“The UAE’s logistics markets have also benefitted greatly from vast investment in physical infrastructure.”
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