Catalyzed by the success of the ongoing Dubai Expo, the logistics market in the UAE is expected to generate revenues of over $30 billion by 2025, according to a Ken Research report.
Dubai Expo and Rail Development hold the key
Aside from the Dubai Expo and Abu Dhabi Vision 2030, the development of a rail network of 1200km to connect seaports, major transportation hubs, distribution centers, free zone areas, major warehousing areas, and freight terminals is also playing a crucial role in accelerating the growth of the logistics sector in the country.
The research also noted that the Dubai Expo 2020, aimed at reducing the country's dependence on oil sectors for growth, is expected to add $32.91 billion to the economy by 2031.
However, the growth of the logistics market will be directly dependent on the adoption of technologically advanced operations and trained professionals.
According to the report, the e-commerce market in the UAE is expected to grow annually by 23 percent between 2019 and 2022.
The study revealed that economic diversification, increasing digitalization, an expected rise in manufacturing industries and rising purchasing power of the population are some factors that raise the e-commerce business in the nation.