As Saudi Arabia continues to make groundbreaking plans with regard to logistics as part of its Vision 2030, and the UAE continues to steam ahead as a major name in the arena, this piece asks which of the two (or could it be another?) will be the logistics king of the future.
While it is evident that there's plenty of room for all the major Middle Eastern states to be global players in logistics, when it comes to being the strategic node between East and West, only one can truly dominate on the global scale.
This is because liners, shippers and cargo owners want to minimise stops on journeys, and henceforth, Middle Eastern states each can stake a claim to be the one-stop-shop for all major logistics needs.
In order to explore this question, this insight will focus on three main criteria: present state of development, major name businesses within a given country, and future vision.
Once we've explored each area, we will offer a final insight into which state(s) hold the greatest potential.
1. Present State of Development
UAE
Without doubt the UAE is in prime position when it comes to present state of development in logistics.
This is chiefly down to the long-term commitments of the state in modernising its economy, infrastructure and social life.
This began in the 1970s with the vision of the UAE's first leader Sheikh Zayed bin Sultan Al Nahyan who aimed to make the UAE a world-renowned force, and it has since been carried on with future plans ever since.
One of the most recent, the ‘We the UAE 2031’ vision represents a national plan through which the UAE will continue its development path for the next 10 years, with a focus on social, economic, investment and development aspects.
The plan seeks to enhance the position of the UAE as a global partner and an attractive and influential economic hub, yet with the world's busiest airport for international flights (DXB), the tourism hub of Dubai, and the port operating giants of DP World, with its flagship port Jebel Ali, and Abu Dhabi Ports, that plan is already close to completion.
Saudi Arabia
While Saudi Arabia may be behind the UAE in starting its transition to a leading modern state, it has made some serious ground in very short time.
The Kingdom of Saudi Arabia (KSA) launched its Vision 2030 in April 2016 and a key pillar of the Vision is transforming the Kingdom into the go-to logistics hub for the region, capable of efficiently linking trade across three continents: Asia, Europe, and Africa.
Today, the path forward is taking shape. Import and export processes are being streamlined. Governance structures and regulations are being reformed, opening a path toward market liberalization and private-sector participation.
In addition, public-private partnerships are helping finance the infrastructure and bringing in capabilities from the top logistics markets. By 2030, Saudi Arabia expects to be among the foremost logistics hubs in the region.
Other Key States
Qatar is worth more than a mention here as it has invested heavily into its logistics arena.
Recent reports indicate that it invested up to US$100bn in infrastructure after hosting the Asian Games in 2018 and the World Cup in 2022.
Plans included an inner-city mass transit system and an estimated $25bn rail network able to handle up to 11 million tonnes a year of freight.
Further, with the ultra-modern Hamad International Airport and Hamad Port, which is capable of handling up to 7.8 million tonnes of products annually, Qatar has made major inroads too.
2. Major Name Businesses
UAE
The UAE is very much a leader in this regard again due to the aforementioned long-term commitment.
Names such as DP World, Emirates and Etihad aren't just renowned in the Middle East, but worldwide, chiefly due to savvy marketing and a reputation for excellence.
Yet it isn't just the big names that make the UAE noteworthy, on the back of its two major Dubai hubs - Dubai International Airport (DXB) and the Port of Jebel Ali, it has built a variety of logistics hubs and arenas around these nodes.
What these arenas provide is fertile ground for start-ups, visionaries and the leaders of tomorrow, which gives the UAE - and specifically Dubai - a real dynamism.
Saudi Arabia
Saudi Arabia has shown its eagerness to move away from an oil-based economy in the same way the UAE has done, and this has brought forth a host of major name companies in recent years in the logistics sphere.
With big names such as Barq Express, Fetchr and Careem making waves in recent years, the Kingdom is modernising with its offering of brands.
Further, with the King Abdulaziz Port, the largest and busiest port in the Persian Gulf and the third largest and busiest port in the Middle East and North Africa area, and the King Abdulaziz International Airport, Saudi Arabia is already a major player.
Also, with air cargo name Saudia Cargo, which has won awards at TLME events before, it has made in-roads into the air cargo space also.
3. Future Projects
UAE
Given the UAE has already built so much key infrastructure, its aims are somewhat changing to look to technological advancement within said infrastructure.
This means a huge focus on automation, robotisation, AI and sustainability, while the UAE leadership gets ever more ambitious, with reports even of missions into space.
Yes, you read that correctly, the UAE leadership is planning to send shuttles up into space to explore the moon in 2024, and the asteroid belt in 2028.
Other projects over the next decade include the Abu Dhabi Economic Vision 2030, Environment Vision 2030 (Abu Dhabi), Plan Abu Dhabi 2030, Abu Dhabi Transportation Mobility Management Strategy, Surface Transport Master Plan (Abu Dhabi), Dubai Autonomous Transportation Strategy, Dubai Industrial Strategy 2030, Dubai 3D Printing Strategy, and the UN’s 2030 Agenda.
Saudi Arabia
While Saudi Arabia may have lagged behind in getting started, this is where it is really making up speed.
With a host of mega-projects that have the power to change the world, Saudi has made it a mission to lead the world in new ways of working and living.
Projects such as NEOM, the futuristic city in the desert, and the Red Sea Project, one of the world's most ambitious regenerative tourism plans, and King Abdullah Economic City, Saudi Arabia is wowing the world.
However, the Saudi government is also working to butress its present supply chain.
The Global Supply Chain Resilience Initiative (GSCRI) is an initiative of the Saudi National Investment Strategy that particularly targets investments in the KSA’s supply chain.
The initiative focuses its efforts to support foreign investment strategies, by adding more economic zones and making KSA a key logistics hub for global exports economies.
The country aims to establish a secure resilience in its supply chain with access to the global supply chains to avoid and supply chain related disruptions that negatively impacted the country during the COVID pandemic.
Other Mentions
Kuwait is looking to change the world with its Silk City Project.
Silk City is a large infrastructure project in northern Kuwait which is currently under development.
The project will be built in individual phases and includes a huge port as part of the new mega city.
The Winner
At the risk of disappointing you dear reader, it is hard to truly pick one winner as it remains to be seen how the Saudi projects will develop.
If they are a huge success, it will surely wrestle some of the logistics and tourism might from the UAE, yet the UAE is the more dependable and established of the two now.
Henceforth, Saudi Arabia seems to be the long-term bet (so long as their mega-projects go swimmingly), while the UAE takes the crown at present.
Read more: 5 Ways Smart Cities Will Revolutionize the Middle East