RIYADH: The UAE’s well-established logistics infrastructure, customs capacity, and connectivity have positioned the Emirates as a key global trade hub, earning it the top rank in the Arab region, as outlined in a recent report.
The inaugural edition of the Whiteshield Global Trade Resilience Index, presented by the global consulting firm specializing in strategic planning and public policy, was unveiled during the 2023 UN Climate Change Conference held in Dubai, according to the Emirates News Agency.
Globally, the UAE occupies the 31st position in terms of trade resilience and stands as the second-highest performer in the Middle East. However, according to the report, despite being a prominent trade hub in the Middle East and North Africa region, the UAE lags behind at the 48th position in terms of network resilience.
Founder and Managing Partner at Whiteshield Fadi Farra emphasized the significance of the Global Trade Resilience Index in addressing global trade policy issues and supporting economies’ sustainability.
He said: “In light of the growing interest in global trade policy issues and their contribution to promoting the sustainability of economies around the world, Wychwood has developed the Global Trade Resilience Index report, which provides an unprecedented methodology to support countries in identifying ways to enhance their ability to withstand and recover from trade volatility.”
The analysis indicates that the UAE excels in operational resilience, which is attributed to its well-organized logistics infrastructure, customs capacity, logistics quality, and connectivity.
The study added: “Nevertheless, the overall efficiency of customs remains a significant performance challenge, mainly attributed to issues with internal border agency cooperation.”
Raed Safadi, chief economist at Whiteshield, highlighted the report’s efficacy as a powerful tool for economic resilience. The index utilized innovative methods grounded in network theory and simulations of trade disruptions, offering insights into potential impacts on trade flows.
The index noted: “Product diversification remains a challenge for the UAE, as it mainly exports two types of products and re-exports three, and therefore its product diversification is one of the lowest among the high-income countries.”
Farra expressed hope that the findings would contribute to COP28’s objectives, particularly in areas where trade and supportive policies can stimulate climate protection measures and promote sustainable development.