Cargo at Jebel Ali Port

Cargo at Jebel Ali Port

UAE logistics, distribution hits $20.9bn

June 2019

The total value of the UAE’s logistics and distribution sectors have grown to Dh76.78 billion ($20.90 billion) in 2017 and represent about 5.4 per cent of the Dh1.42 trillion ($386.5 billion) economy, according to the Annual Economic Report 2018, published by the UAE Ministry of Economy.

These two sectors are growing at 7.9 per cent per annum. They are expected to drive the growth of the UAE economy till 2023, according to another report by Dubai Chamber of Commerce and Industry.

“Real GDP of the UAE’s non-oil sector is projected grow at an average rate of 4.1 per cent between 2019 and 2023, compared to 2.8 per cent growth recorded in the 2014-2018 period. Momentum behind the UAE’s GDP growth over the next five years will likely be led by the country’s transport and logistics sector which is set to record GDP growth of 7.9 per cent,” Dubai Chamber said in its report.

The growth in the UAE’s distribution and logistics sectors will be driven by online sale and e-commerce sector, said a top industry official.

Shahzad Ahmed, chairman and chief executive officer of Blue Ocean Global Group, said: “More and more consumers are currently shifting towards online purchase – due to wider choice, price competitiveness and the convenience of home delivery.”

“As a result, the Distribution and Logistics business is also moving towards the digital space,” he said.

“Over the last few years, we have seen our online distribution jump many folds and currently represent about 20 per cent overall distribution business. This growth is phenomenal and will change the logistics, distribution, wholesale and retail businesses,” he added.

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