Six trends that will shape the UAE in 2018 and beyond
They are all critical to the nation’s growing economy
The uae has cemented over the past few years its position as the leading regional logistics hub. The GCC market is expected to reach $66.3 billion by 2020, with the UAE and Saudi Arabia at the forefront. Agility’s annual report recently confirmed that the UAE has maintained its position as the third-best logistics hub among 50 emerging markets, and took the first spot for the quality of infrastructure and transport.
Here are six current and future trends that will shape the UAE in 2018 and beyond:
Blockchain: 2018 is the year for blockchain, and after cryptocurrencies had an incredible 2017 it will now bring to prominence the use of blockchain through people’s entire supply chain. We have seen the UAE government wanting to take the lead on this with, for instance, the launch of the Dubai Blockchain Strategy by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, in 2016, establishing a roadmap for the introduction of blockchain technology. I think we will see the private sector making a much larger push on this.
Air taxis: The Roads and Transport Authority has already said the flying taxis will be launching soon. This will open the doors this year to the world thinking about the method by which courier and small packages can be delivered and taken forward.
Solar boom: Solar energy has proven itself as a viable and simple alternative for energy production. This year we will see a huge amount of solar coming online and deals being signed. This will hopefully impact the logistics sector by helping bring costs down.
Continued investment into infrastructure: The UAE, on multiple levels, continues its investments into infrastructure that is vital to boost trade, roads, sea ports, airports and rail networks. With this continuing and more coming online in the UAE, this will only improve the opportunities and channels of trade for the country.
Innovative supply chain providers shall survive: The last 24 months have seen challenging times and have brought to light a lot of the business models that will not be sustainable in the long term. I feel in 2018 we will see a lot of consolidation or liquidation of businesses that will not survive the test of time, leaving behind innovative supply chain providers to take on customer challenges.
Al Maktoum International Airport: We expect tremendous growth in cargo volumes through Al Maktoum in 2018 and this will be driven by the continued growth at Dubai International, as well as the maturing of the Dubai Logistics Corridor and introduction of partnerships in 2017, such as Emirates and CargoLux.