The reasons for the growth of the Gulf’s logistics infrastructure relate to its strategic geographic location along the Asia–Europe trade route, which has resulted in large levels of expenditure on mega transport infrastructure in various GCC states, including ports, airports, trains and roads.
More than 60% of the total expenditure on ports in the Middle East is in the GCC. Both new mega port construction and expansion of existing ports are taking place, with new, highly automated ports designed to accommodate the largest container ships in the world. These port projects are also integrally linked to the development of wider logistics networks, including passenger and freight railway schemes, airports, special economic zones and so-called logistics cities. In addition to being central to commodity circulation from Asia to Europe, GCC maritime ports are also positioned as crucial feeder ports to smaller East African ports.
Industrials and logistics have been identified as two core pillars to diversification agendas and key drivers of Foreign Direct Investments (FDI) into GCC economies. The GCC has become a central node in the worldwide circulation of commodities. More than 60% of the total expenditure on ports in the Middle East is in the GCC. To know more about the sector read our latest report on GCC Logistics Sector.Get Report View All Reports