Posted by Bob Brunskill
The logistics market in the UAE is set to record revenues of $7.03 billion in 2010, new research shows.
A study by Frost & Sullivan entitled Strategic Analysis of Logistics Market in United Arab Emirates also predicts that the sector will generate $9.4 billion in revenues by 2014.
The report pointed to the UAE's advantageous position for conducting trade between countries in the Eastern and Western hemispheres.
It noted that the freight forwarding segment contributed to about 63 per cent of logistics revenues, representing $4.42 billion in 2010.
"Being located near India and China, the high growth economies, the UAE imports about 60 per cent of its products from these countries, mostly transiting through the Dubai borders," observed Frost & Sullivan transportation and logistics programme manager Srinath Manda.
"Thus, the UAE has a unique advantage over the other Middle Eastern countries and has been able to establish itself as a centre for trans-continental trade."
Elsewhere, it was suggested that the UAE government's huge investments in infrastructure and logistics projects were likely to retain the nation's position as a key logistics hub in the Middle East.