UAE ranks third in global logistics index

Dubai / Emirates Business

United Arab Emirates ranks first in the region and third globally, after China and India, for a fifth consecutive year, according to the 2019 Agility Emerging Markets Logistics Index.
In Agility’s 10th annual ranking of 50 leading emerging markets, a broad gauge of competitiveness based on logistics strength and business fundamentals, Gulf countries outperform most others. Business-friendly conditions and core strengths position several Gulf countries near the top of the Index, behind giants China (1) and India (2), and alongside Southeast Asian nations. The UAE also ranks first in business fundamentals globally.
In the Gulf, the UAE was ranked number 3, Saudi Arabia at number 6, Oman comes at number 12, Bahrain at 16 and Kuwait was ranked at number 18. Among Asean countries, Indonesia was ranked at 4, Malaysia at 5, Vietnam come at 10 Thailand came at 11 and Philippines was ranked at number 20.
“The strong performance of Gulf economies in the Index is the result of wise investment in logistics and transport infrastructure, concerted efforts to diversify, steady progress in streamlining regulation, and strategic development of digital capabilities,” says Elias Monem, CEO of Middle East & Africa for Agility Global Integrated Logistics. “The healthy competition among Gulf economies has helped put the entire region out in front.”
Agility’s annual survey of more than 500 supply chain industry professionals shows logistics executives are upbeat about the 2019 emerging markets growth outlook, but fearful that trade tensions, currency and interest rate volatility, and Brexit could trigger a crisis.
In the survey, 55.7% say a 2019 growth rate of 5% is “about right,” but a surprising percentage – 47.1% – say an emerging markets crisis is “likely” or “highly likely.” Emerging markets expanded by 4.7% in 2018, and the International Monetary Fund now forecasts 4.5% expansion for 2019.
The Index ranks 50 countries by factors that make them attractive to logistics providers, freight forwarders, shipping lines, air cargo carriers and distributors. The top 10 are: China, India, United Arab Emirates, Indonesia, Malaysia, Saudi Arabia, Mexico, Qatar, Turkey and Vietnam.
China, India and Indonesia rank highest for domestic logistics; China, India and Mexico are top for international logistics; and UAE and Malaysia have the best business fundamentals.
The UAE and Malaysia top for business fundamentals. Gulf countries Qatar and Saudi Arabia also score high.
South Africa, which was ranked at number 24, was considered as an underperformer. But in rankings of business fundamentals, Ghana and Kenya do relatively well at number 19 and 21 respectively. Nigeria, which vies with South Africa to be the region’s largest economy, suffers from poor business conditions, an area where it ranks 44th.