UAE spends USD 26 billion to reinforce its position as a global logistics hub
Wednesday, 04 Nov 2009
Khaleej Times reported that Global investors are eager to share in the UAE’s efforts to reinforce its position as a global logistics hub where authorities have already spent around USD 26 billion to develop the country’s air and maritime infrastructure.
The Hannover based exhibition company Deutsche Messe said that the high profile projects underway in the UAE include the USD 7 billion Dubai World Central airport initiated by the Dubai Civil Aviation Authority, the Abu Dhabi Airport Company’s USD 6.5 billion expansion program for the UAE capital’s airport including a logistics park and a USD 1.6 billion expansion program for the Jebel Ali Port by Dubai Ports Authority.
A recent research report from Standard Chartered Bank said that the logistics industry could emerge as the United Arab Emirate’s biggest asset outside of oil.
Mr Philippe Dauba Pantanacce senior economist at Standard Chartered Bank said that “More than a ‘stop off’ point, the UAE is becoming a logistics hub that serves a vast population with its location at the crossroads of major shipping routes between Europe, Asia, Africa and the Middle East while one third of the world’s population is also located within 4 hours by plane.”
Although billions of dollars have been invested to develop the warehousing and transportation infrastructure in Dubai with the construction of new projects such as the Dubai Logistics City and Al Maktoum International Airport as well as expansions to current developments such as Jebel Ali Port and Dubai Cargo Village other emirates in the country have also increased their focus on logistics in recent months.
Ajman Free Zone Authority or AFZA secured AED 54 million of financing earlier this year to complete the Phase III of its large scale warehousing complex while Abu Dhabi Airports Company has announced plans for logistics parks to support its airports in Abu Dhabi and Al Ain.
According to Mr Khalifa Mohamed Al Mazrouei chairman of ADAC, the Middle East remained an expanding market for the logistics and aviation sectors due to its strategic location and growing economic strength despite the current economic situation.
He said that “Projections show the region will continue its strong growth and we are confident there is demand to support our logistics parks at Abu Dhabi International Airport and Al Ain International Airport.”
Deutsche Messe Dubai Branch which is organizing the CeMAT Middle East show for internal logistics and materials handling in Dubai in February 2010 said that the positive attitude of industry players towards the trade events reflected the region’s excellent market conditions as private and public sector organizations continue to invest for the long term through various infrastructure development projects and technology adoption.
Mr Angela Schaschen MD of Deutsche Messe Dubai Branch said that the inaugural Dubai edition of CeMAT will be held from February 9th to 11th 2010 at the Dubai International Convention and Exhibition Centre. It will host world leaders in mechanical handling, warehouse technology, workshop equipment, packaging and order picking equipment systems for materials handling technology, warehouse technology, loading technology, internal logistics systems and software, services and outsourcing.
