“Construction, too, has outpaced general growth predictions. This, in turn, has provided increased prosper- ity to the local populace, resulting in greater consumption and well being,” he adds.
trade activities in the Middle East. Moreover, the survey’s findings back strong manufacturer support for China government targets to double Middle East trade – set to reach (US) $100 bil- lion in 2010, up from (US) $51.3 billion in 2005. This growth bodes well for UAE’s emerging seaport network. Currently, it features two ports among the world’s top 50 in terms of container volume, with Dubai ranked ninth (7.6 million TEUs) and Khor Fakkan, on the UAE’s east coast, landing at 47 (1.9 million TEUs). The development of Free Trade Zones in and around the UAE’s grow- ing port facilities – it now maintains 32 – have similarly helped facili- tate and expedite foreign trade with China and the United States, and other areas. Global ocean freight carriers are taking notice of the UAE’s growth as well. Last year, Emirates Shipping Line launched its inaugural sail- ings, with the Middle East trade lane as the focal point of its development strategy. Maersk Line, the world’s larg- est ocean container shipper, credits Middle East business with 10 percent of its total trade volume, according to Marc Gijsbrechts, Maersk CEO for the Middle East. In 2007, the ocean carrier expects the Middle East to grow faster than any other market in its network and predicts that by 2009 Maersk Middle East alone will handle the same vol- ume that all of Maersk Line handled globally 10 years ago. One reason for this expected freight volume surge is the Middle East’s increasingly balanced import/export market. In Dubai, for example, over the past three decades the freight import/export balance has shifted from a ratio of 6:1, to a ratio approach- ing parity. As of 2004, import volume stood at 618,996 tons of freight versus 522,154 tons of exports, according to the Global Cargo Village. A balanced overall import/export market in the Middle East–which has primarily been an import-driven sur- plus market – will require countries and companies to invest in necessary equipment as the market progresses from surplus to deficit. This trend
OCEAN FREIGHT: GOING THE DISTANCE
Growing in tandem with this appe- tite for consumer goods are trade links with countries such as India and China. By example, the Middle East is
currently India’s top export destination for a burgeoning consumer electronics sector. Exports reached $175 mil- lion in 2005-06, an increase
Thanks to increased trade with countries such as China and India, demand for ocean freight capacity in the United Arab Emirates is on the rise. The country boasts two ports – Dubai and Khor Fakkan – ranked in the global top 50 for container volume.
While Asian/European trade is a pri- mary factor driving air cargo growth in the Middle East, growing consumerism in cities such as Dubai is also contribut- ing to this freight phenomenon. “The Middle East today is one of the fastest-growing regions in the world,” observes Jamshed Safdar, senior vice president of marketing for Emirates Shipping Line, a Dubai-based ocean carrier. “This economic boom is pri- marily driven by oil revenues, as well as organic business growth, which are being reinvested within the region itself.
of 96 percent over the previous year, according to the Electronics and Computer Software Export Promotion Council (ESC). As far as growing trade reciprocity with China, 63 percent of respondents to a recent China supplier sur- vey, Middle East Export Opportunities , cited the Middle East as the next “hot” export market for Chinese- manufactured goods. The report, authored by consultancy Global Sources, polled exporters from main- land China, Hong Kong, and Taiwan to evaluate their current and potential
152 Inbound Logistics • July 2007
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