BY JOSEPH O’REILLY While the Middle East’s cash crop has traditionally been oil production – a factor that has contributed both to the economic prosperity of some countries and the geopolitical volatility of others – increasingly, Middle Eastern nations such as the United Arab Emirates (UAE) are targeting transportation and distribution activities to grow trade prospects and com- pete with other emerging global logistics markets. The UAE, and its prize city Dubai in particular, have started to diversify, focusing on economic development beyond the oil industry. Non-oil foreign trade in the UAE rose nine percent during 2006, from $130.6 billion to $142.5 billion, according to Dubai World, a Dubai- based real estate holding group. “These results reflect the Emirates’ rapid economic growth in a short time and what it can achieve in the global trade arena,” says H.E. Sultan Ahmed bin Sulayem, chairman of Dubai World. “Many factors helped push this economic expansion, especially the impressive growth in the UAE’s real estate sector, and increase in the number of international companies operating in Dubai.” That includes some 6,000 compa- nies located in Dubai’s Jebel Ali Free Zone, he adds.
With constant new development,
soaring air cargo growth, and a busy port
system, Dubai is shaping up to be the
crown jewel of logistics in the Middle East.
July 2007 • Inbound Logistics 149
Powered by FlippingBook