The best is yet to come

Three trends that will shape our future

It’s easy to assume the world’s eyes are on our region. Media around the world – be it online, print, radio or television – have used nothing but superlatives to describe the rapid economic progress witnessed here. The logistics industry, as well, is no stranger to this phenomenon, having enjoyed its fair share of the global media limelight.

With a tax-free environment, abundance of space and a third of the world’s population living within a three-hour flight radius, this region has evolved as a natural hub for trade between the East and the West.

But these factors are only the foundation. The best, as they say, is yet to come. Over the next five years, three trends – deregulation, competition and technology – are going to revolutionise our industry.

• DEREGULATION The biggest debate of the season seems to be over a GCC wide single currency. Today, the complex web of tariffs and formalities not only add to the cost of goods, but also hinder the development of over-land transportation routes. In the logistics industry, a GCC-wide single customs tariff would fuel the movement of goods throughout the region. Such a deregulation move could connect Oman with Turkey and beyond.
• COMPETITION Great opportunities often create fierce competition. Almost all of the world’s major logistics players are in this region. Local businesses, such as Mohebi, Aramex and UAE government-backed Empost are investing heavily to expand their portfolios. This trend is set to continue. Prices will remain competitive and new players will have to come in with even larger investments.
• TECHNOLOGY Everyone knows technology is important, but very few understand how important. New knowledge is enhancing the industry’s ability to offer customers rationalisation, quality assurance and better service. Logistics is increasingly becoming a tech business. It is no longer enough to have the largest warehouses or fastest ships. Having the right technology can make or break a business.

Continuing infrastructure development and diversification into non-oil products and services have positioned the Middle East as one of the world’s key trade hubs. At LOG.Middle East, we consider ourselves extremely fortunate, to not only document this community, but to be a part of it.

Our journey starts here.

Jacob Joseph
Executive Editor
jacob.joseph@dvvmedia.com