It is not in the least surprising for the UAE to attain the best results among Middle East and North Africa countries in the 2014 version of the ‘Logistics Performance Index (LPI). This can be partly attributed to Dubai’s status as the leading trading hub in Asia.
The study, executed by the World Bank, is published bi-annually. The 160 economies surveyed must do well in six components to obtain an outstanding performance.
These variables compromise of efficiency in customs and border clearance; the quality of trade and transport infrastructure; ease of arranging competitively priced shipments; the quality of logistics services including trucking, forwarding and customs brokerage; tracking and tracing consignments; and timeliness of shipments reaching consignees within scheduled delivery times.
Among the Gulf Cooperation Council (GCC) countries,
The UAE achieved a score of 27 on the LPI. Sure, this is not the best show for the UAE, which has had scores of 17 and 24 in the 2012 and 2010 reports.
The drop partly reflects the determination of countries elsewhere to improve their connectivity in the global logistics business. Certainly, streamlined logistics entice foreign investments, thus help achieving other goals like economic growth and job creation for locals.
Undoubtedly, Dubai stands out in the area of connecting importers and exporters in the international markets. This is evidenced by the level of non-oil trade conducted by Dubai, which soared to $362 billion in 2013. The figure is divided into imports of $221 billion and exports and re-exports of $141 billion.
Many Asian countries find it essential to do business with Dubai, mainly the emirate’s re-exporting activity, to meet their needs.
Dubai’s logistical services are boosted by the numerous ports and airports. In fact, the ever-expanding networks of Emirates and Flydubai, regional leaders in full service and economy carriers, contribute to creating additional cargo capacity.
DP World is known for extending port services worldwide. The operator posted a net profit of $604 million in 2013, showing a satisfactory 11 per cent growth. The achievement also mirrors gains from opening new ports in Britain and Brazil as well as expanding port services inside the UAE.
Turning to other GCC countries, the fact that Qatar achieved the second best regional performance says a great deal about ongoing economic development in the GCC’s third largest economy. The report ranks Qatar at number 29 on the LPI, preceded by the UAE and China.
Qatar stands the chance of improving its ranking on the back of expenditures relating to hosting the football World Cup 2022. Investments relating to Doha Metro project alone are estimated at more than $30 billion. The first phase of is due for commissioning in 2019 with 37 operating stations.
In fact, Qatar is expected to strengthen its logistical capacity with opening of the Hamad International Airport with a 30 million capacity. Phased opening of the long-awaited airport is scheduled for the second half of the year.
Saudi Arabia, Bahrain, Kuwait and Oman are ranked at numbers 49, 52, 56 and 59, respectively on the LPI. Amazingly enough, GCC countries are the best performers among Arab countries at large.
Egypt, the best Arab performer outside the GCC, is ranked number 62 globally.
The ever-growing expansion and addition of ports and airports confirms throughout the GCC should solidify the group’s position on the global map of logistical services.
The writer is a Member of Parliament in Bahrain.
