GCC, a Key Player in Logistics

How does the GCC hold up against the global logistics industry? Pretty well indeed, considering the number advantages the region possesses that enable it to become a logistics hub for the region and beyond.

A prime geographical location at the crossroads of the East and West countries, efficient air, sea and road routes, a sustainable focus on developing infrastructure, and great locations to do business, all rule in favour of the GCC. Furthermore, international events such as the Expo 2022 and the FIFA World Cup 2022 drive investment into infrastructure upgrades, which in turn impact logistics industry growth. With a dedicated approach to diversifying from oil and gas sectors, these countries are now developing their economies to focus on other sectors such as logistics, manufacturing and so on.

In fact, the United Arab Emirates, Kingdom of Saudi Arabia and Qatar are among the top 10 emerging markets from a logistics perspective, according to the 2021 Agility Emerging Markets Logistics Index. Moreover, the GCC is the strongest in terms of business fundamentals. It offers the most stable business climates among emerging markets and many countries rank high in terms of ease of doing business.?

While the pandemic may have introduced new, permanent ways of working, the GCC countries are among the first to undertake vaccination drives and digitally transform the business and operations models. The industry is expected to grow by 4.3 per cent between 2020 and 2025, according to a recent Frost and Sullivan report. Building confidence in associates to go out in the field and understand customer requirements while following covid appropriate behaviour was another focus point of Al-Futtaim Logistics' pandemic response.

Dr Raman Kumar, Managing Director of Al Futtaim Logistics asserts that technology has increased the transparency of the entire supply chain and enabled logistics companies to achieve record delivery times. At the same time it has opened up new opportunities in warehousing and e-commerce fulfilment.

The changing consumer preferences in F&B logistics sector was quickly captured by the Al-Futtaim Logistics team to ensures sustainable growth and expansion of services from UAE, to KSA and Oman, according to Binoy George, General Manager – Warehousing & Contract Logistics.

Digital technologies chart the course towards manned and unmanned connected autonomous transportation and sensor-driven connected physical transportation infrastructure. Robotics, autonomous vehicles, big data analytics, the Internet of Things (IoT), and augmented reality are vital technologies to improve efficiency in sorting, order picking, inventory management, and packing operations in warehouses. These ultimately lend visibility and efficiency of systems and processes vital to the logistics industry.

GDP growth across the Gulf Cooperation Council region increased by 2.1 per cent in 2019 according to national figures. Increased government focus on digitalization, the contribution of knowledge economy sectors, and the launch of 5G services to support artificial intelligence and cybersecurity technologies will spur the transformation of the logistics ecosystem, states the Frost and Sullivan report.?