The UAE ranks third in the 50-country 14th annual Agility Developing Markets Logistics Index, after China and India.
Saudi Arabia was ranked sixth. Both nations were in the top ten in each of the Index's four categories: domestic logistics, international logistics, business foundations, and digital readiness. Qatar was in the top ten in every category except international logistics, where it ranked 19th.
According to global supply chain experts, innovation and assistance for small firms will be the most important drivers of non-oil economic development for Gulf nations, which have outpaced most others.
Fundamentals of business
The GCC nations once again led the business fundamentals rankings, which examine developing market countries' legal, regulatory, and tax regimes. UAE (1), Qatar (2), Saudi Arabia (3), Oman (5), Bahrain (6), and Kuwait (11) ranked first and second, respectively, for best business environment.
Kuwait (ranked 15th overall) achieved the most to enhance its competitiveness among the six GCC economies, gaining ground in every area. In terms of digital preparedness, Oman jumped five ranks to No. 10 while Bahrain jumped six spots to No. 16.
Agility's 14th annual overview of industry mood and ranking of the world's biggest developing markets includes the Index and a poll of 750 global logistics industry leaders. The Index assesses nations based on aspects that make them appealing to logistics providers, freight forwarders, air and ocean carriers, distributors, and investors.
Important factors
The poll asked industry leaders to describe the most significant economic diversification drivers for GCC nations, all of which are attempting to lessen reliance on oil and gas by increasing private-sector development. Respondents identified key factors as technological advancement and innovation, a small business environment, infrastructure development, regional and global integration, business conditions for multinational corporations, a skilled labour force, the elimination of energy subsidies, and the creation of career opportunities for women.
Outside of the GCC, the rankings were quite volatile. War, sanctions, political turmoil, economic mistakes, and ongoing Covid consequences harmed Ukraine, Iran, Russia, Colombia, Paraguay, and others' competitiveness. Bangladesh, Pakistan, Jordan, Sri Lanka, and Ghana are among the nations that have made significant progress in certain areas.
Index Highlights for 2023
•Net-Zero Commitment - 53% of logistics executives say their organisations have committed to achieving net-zero emissions, while another 6.1% claim they have already done it.
•Climate Change - Half of firms think they must prepare for climate change, while another 18% say it is already harming them.
•Emerging Markets - Despite economic worries, 55% say they will be more active in expanding and investing in emerging markets or will stick with their current plans.
•Digital Forwarding - The main gain, according to respondents, is increased monitoring and visibility; the major drawback is error/exception handling.
•Ukraine - 97% report that increased prices or other supply chain issues have harmed their firms as a consequence of the Russia-Ukraine war.
•China - Companies intending to minimise their dependence on Chinese sourcing are divided evenly with those intending to develop in China. Yet, just 11% of respondents report that their company's production footprint is the same as it was before Covid.
•Africa - Despite the agreement's sluggish implementation, logistics executives expect significant advantages for Africa from the African Continental Free Trade Agreement (AfCTA).
Country Rankings
•The overall rankings in the Middle East and North Africa were as follows: UAE (3), Saudi Arabia (6), Qatar (7), Turkey (11), Oman (12), Bahrain (14), Kuwait (15), Jordan (16), Morocco (20), Egypt (21), Tunisia (32), Lebanon (33), Iran (36), Algeria (41) and Libya (42). (50).
•Sub-Saharan African rankings: South Africa (24), Kenya (25), Ghana (29), Nigeria (34), Tanzania (37), Uganda (43), Ethiopia (45), Mozambique (46), and Angola (48).
•In Asia, the following countries rank first: China (1), India (2), Malaysia (4), Indonesia (5), Thailand (8), Vietnam (10), Philippines (18), Kazakhstan (22), Pakistan (26), Sri Lanka (30), Bangladesh (35), Cambodia (38), and Myanmar (49).
•Latin American rankings are as follows: Mexico (9), Chile (13), Brazil (19), Uruguay (23), Peru (27), Colombia (28), Argentina (31), Ecuador (39), Paraguay (40), Bolivia (44), and Venezuela (47).
•In Europe, Russia (17) is followed by Ukraine (42).