The UAE, Saudi Arabia and Qatar continue to rank among the world’s top 10 emerging markets, improving or holding steady in key areas while neighboring Oman, Bahrain and Kuwait lose ground in the 15th annual Agility Emerging Markets Logistics Index
The UAE was positioned at third place after China and India, while Saudi Arabia and Qatar were at sixth and seventh positions respectively.
In Agility’s survey of 830 logistics industry executives, respondents say Saudi Arabia and UAE are doing the most among GCC countries to accelerate economic diversification and lessen reliance on income from oil and gas.
UAE ranks first for best business fundamentals, while Saudi Arabia third in that category. Even so, logistics professionals in the survey identified further improvements for small businesses and multi-nationals as the most powerful drivers of continued diversification for all GCC countries.
The survey and Index are Agility’s 15th annual snapshot of industry sentiment and ranking of the world’s 50 leading emerging markets. The Index ranks countries for overall competitiveness based on their logistics strengths, business climates and digital readiness, which are factors that make them attractive to logistics providers, freight forwarders, air and ocean carriers, distributors and investors.
UAE and Saudi Arabia rank in the top 10 in every category. Qatar ranked among the top 10 in all categories except international logistics opportunities, where it was twentieth.
Half of the logistics professionals surveyed a global recession in the coming year – down from nearly 70% a year ago. Executives surveyed say they are battling higher costs, reducing dependence on sourcing from China, and planning to boost investment in Africa despite seeing emerging markets investment overall as somewhat riskier.
More than 63% of respondents say their companies continue overhauling supply chains by spreading production to multiple locations or relocating it to home markets and nearby countries. China, the world’s leading producer, stands to be most affected: 37.4% of industry professionals say they plan move production/sourcing out of China or reduce investment there.
