Executive SummaryIndustrials and logistics have been identified as two core pillars to diversification agendas and key drivers of Foreign Direct Investments (FDI) into UAE economy. UAE in investing heavily to further improve their network with big projects like the USD 3.5bn Al Mafraq-AI Ghuwaifat road upgrade for 246km of roads in the western region. The UAE has a sophisticated airport infrastructure, the major airports being Dubai (DXB), Dubai (DWC), Abu Dhabi and Sharjah. Jebel Ali sea port in Dubai is the largest sea port (19mn TEU) in the GCC followed by Khalifa (3.0 mn TEU) & Sharjah (2.5 mn TEU). Industrial activity is on the rise in the UAE to achieve sustainable economic diversification under the UAE Economic Vision 2030 and this is an important driving factor for logistics sector growth.
The government is targeting on increasing the contribution of the manufacturing sector to the overall GDP from its current 11% to 25% by 2025. There are around 28 free zones in Dubai and they play a significant role in total Dubai’s GDP and trade. Each Free Zone has its own authority that regulates its activities. Freight transportation and last-mile delivery are major sources of inefficiencies in the UAE’s logistics market. Warehousing automation, digital freight platforms, and innovations in last-mile delivery are required focus areas. To know more about this sector read Marmore’s latest report on UAE Logistics Sector.
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