By Shane McGinley
The freight forwarding segment makes up 63% of the sector, enhanced by growth in the emirate’s logistics facilities.
The UAE’s position as the region’s main logistics hub will see revenues in the sector rise to over $7bn 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 $7.03bn this year and estimates that revenue could reach $9.40bn within the next four years.
The freight forwarding segment accounts for around 63 percent 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 percent 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.
On Wednesday, Paul Griffiths, the CEO of Dubai Airports, also said air transport in the emirate is set to soar over the next few years and passenger figures at Dubai International Airport are expected to hit 50m by the end of 2011 and 90m by the end of this decade, making the facility the world’s busiest in terms of international passenger traffic,
He added that October’s freight volumes rose 9.2 percent, with year-to-date figures showing a 21.6 percent improvement over the corresponding period in 2009. He forecast that freight traffic is predicted to increase by 4.8 percent to 2.2m 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).For all the latest transport news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.