The UAE’s position as the region’s main logistics hub will see revenues in the sector rise to over US $7 billion this year and $9.4bn by 2014, a new study claimed on Wednesday.
The new study by consultants Frost and Sullivan into the logistics market in the UAE found that the sector is set to record revenues of $7.03 billion this year and estimates that revenue could reach $9.40 billion within the next four years.
The freight forwarding segment accounts for around 63% of the market, with transportation and warehousing accounting for the bulk of the remainder.
“Being located near India and China, the high growth economies, UAE imports about 60% of its products from these countries, mostly transiting through the Dubai borders,” said Frost and Sullivan transportation and logistics program manager Srinath Manda.
The Dubai government is making investments in this sector, specifically in the development of Dubai Logistics City, which received a major boost recently when Switzerland-based Kuehne and Nagel, the world’s biggest sea freighter, relocated its Middle East and central Asia headquarters from Turkey to the emirate.
He added that October’s freight volumes rose 9.2%, with year-to-date figures showing a 21.6% improvement over the corresponding period in 2009. He forecast that freight traffic is predicted to increase by 4.8% to 2.2 millio tonnes next year.
In a bid to enhance growth in the logistics sector, the Dubai government is also expanding the Jebel Ali Port and Hamriyah Free Zone and Abu Dhabi recently established the Khalifa Port and Industrial Zone (KPIZ).