The logistics industry in UAE is undergoing massive transformation due to diversification plans of the logistics industry in UAE, harmonization of regional trade and export regulations, expansion and modernization of logistics companies in Dubai. Although fuel prices are falling, economic growth is likely to be boosted by the shipping and logistics companies in Dubai, construction activities for UAE logistics industry and capacity expansion and modernization of Dubai logistics companies. UAE is a part of the Gulf Cooperation Council (GCC), therefore logistics companies in Dubai are expected to benefit from trade policies and formation of Dubai logistics companies in the GCC region. The logistics industry in UAE comprises of shipping and logistics companies in Dubai that are increasingly becoming more important as the region’s list of logistics companies in Dubai are a major transshipment point for the UAE logistics market and a multimodal logistics hub to fulfil the demand of growing international trade for the top logistics companies in the logistics industry in UAE.
The logistics industry in UAE service integration is expected to drive the top list of logistics companies in UAE in the Gulf region. The logistics industry developments and formation of the Dubai logistics companies in the GCC provide opportunities to top logistics companies in Dubai such as Dubai Logistics City (DLC) and also to the entire logistics industry in UAE. Dubai Logistics City incorporates more than 25 sq. km of free zone and serves every transport mode, logistics need and value-adding operation in the UAE logistics industry, including manufacturing and assembly, all within a single-bonded, free zone environment. The logistics industry in UAE has emerged as a market leader for the logistics hub for the GCC logistics industry. Here is a list of logistics companies in Dubai in the UAE logistics market that predominantly feature among the top 10 logistics companies in Dubai.
Growth Pattern of the Logistics Industry in UAE
Economic diversification and development of industrial export-oriented centers and free trade zones are going to boost both logistics industry in UAE and the leading logistics companies in Dubai. Transportation infrastructure development and new technology solutions are likely to strengthen the infrastructure required for the multi-modal transportation system. The integration of logistics functions, harmonization of the GCC customs regulations will lead to synchronized, coordinated, and interconnected logistics companies in Dubai. Transportation & Logistics sector generates about $29.08 billion in UAE’s GDP for 2015. The comprehensive list of logistics companies in Dubai leads the logistics industry in the UAE with around 45.0 percent share in 2017 succeeded by Abu Dhabi. The logistics industry in UAE constitutes more than 14.0 percent of Dubai’s GDP, the highest in the UAE logistics market. The strategic location of Dubai in terms of geography and improved infrastructure of the Dubai logistics companies facilitate a list of logistics companies in UAE for a large share of revenue for the UAE logistics industry. Capacity expansion and infrastructure investment are expected to strengthen the competitiveness of a list of logistics companies in UAE, the logistics industry in the UAE logistics market is forecasted to expand at a healthy CAGR of 4% till 2022.
Future Trends in the Logistics Industry in UAE
Dubai International Airport handles over 2million tons of cargo annually, with volume growth of over 4% against the previous year, and Abu Dhabi Airport managed around 850,000 tons of cargo in the same period. The top two airports in UAE will continue to spend heavily on expansion and enhancement of facilities in the coming few years. Emirates, a top logistics companies in Dubai launched a new facility for pharmaceuticals at Dubai Airport to satisfy the growing demand for pharma products. In the near future, the cold-chain services are expected to boost the logistics industry in the UAE. The top air freight companies Etihad and Emirates will play a large role in the UAE logistics industry over the coming few years as the top 10 logistics companies in Dubai continue booming.
Abu Dhabi Ports Company plans to expand Khalifa Port by 100 square km by mid-2018 to accommodate more logistics companies in Dubai and keep pace with rapid growth within the sector. The UAE is investing $1.6 billion in Jebel Ali Port, a top logistics companies in Dubai managed by the global terminal operation DP World, to increase the port’s total capacity to 22.1 million containers. Sharjah port is expected to register a CAGR of more than 3% in the period 2017-2022 while Khalifa Port at Abu Dhabi will grow by over 13% during the forecasted period. The logistics industry is among the key sectors boosting the growth of the economy in the UAE and the past improvements and investments within the UAE logistics market has consolidated Dubai as one of the top logistics hubs in the world and augmented the market share of the top 10 logistics companies in Dubai.