The UAE is increasing its investments in fast-growing shipping sectors such as cold chain logistics and has formulated bilateral trade agreements with Asian partners to invest in logistics infrastructure, a recent study revealed at the Dubai Air Show.

The strategic location of the UAE market as a transit hub between Europe and Asia, as well as its advanced infrastructure, will support future growth trends as the trade and manufacturing center moves eastward into the growing middle classes of Asia and India.

Expected growth

The recent trade and political effects globally have created some uncertainty in the global logistics and shipping sector, according to a study by Tarsus F&A, the organizer of the Dubai Airshow.

However, research shows that this is a short-term issue, as the World Trade Organization forecasts that the sector will grow on a par with the country's GDP by 2.6%. This year, rising to 3% in 2020, faster than GDP growth, while the long-term forecast by the Organization for Economic Co-operation and Development (OECD) indicates that global demand will rise to 2050, much of it in the air cargo sector, which is expected to grow at a compound annual rate 4.5%.

Cold chain

Air cargo accounts for 35% of global freight, but only 1% of volume, while the Trade and Manufacturing Center moves east to the Middle East as a commercial hub, pointing out that the logistics and cold chain logistics sector is growing 7.8%.

Emirates and Etihad have launched facilities to ship fresh products and pharmaceuticals, she said, adding that one of the fastest growing sub-sectors in the air cargo market is the cold chain. 7.8%, the sector covers climate-controlled transport of fresh produce and medicines, both of which enjoy growth from Asia's emerging middle class.

Latest facility

Emirates SkyCargo, the cargo arm of Emirates Airline, has launched Emirates SkyPharma, the newest air cargo facility dedicated to the handling of heat sensitive medicines at Dubai and Al Maktoum International Airports, where the facility witnessed a 38% growth in shipments of pharmaceuticals and perishable items. .

Emirates Air Cargo handled pharmaceutical products at a new facility in Chicago, developed in partnership with Maestro Ground Handling, which can handle 15,000 tonnes of pharmaceutical shipments a year, Etihad added to its list of services. Specialized service «FreshForward» for the transport of fresh materials, to support the sector of refrigerated goods and the import of perishable goods, where «Etihad Cargo» transported more than 90 thousand tons of perishable goods over 12 months.

Logistic centers

RSA Logistic and Kuehne and Nagel have open logistics centers in the UAE to manage the Middle East and North Africa (MENA) region. UAE market to meet future demand.

Middle classes

The trade and manufacturing center, such as the aviation industry, is moving eastward into the growing middle classes of Asia and India, while strategically, this leaves the Middle East and the UAE market in a privileged position as a transit hub between Europe and Asia.

In particular, the UAE has formulated bilateral trade agreements with Asian partners to invest in logistics infrastructure.

E-Commerce

Tarsus F&I study shows that e-commerce is growing by 18% each year, but there is still room for further growth such as online sales, which account for only 15.2% of all retail sales, pointing out that Dubai South has recently opened The area dedicated to e-commerce covers an area of ​​920 thousand square meters.

38%

Growth in shipments

Medicines and midwives

Damaged through «UAE

Sky Pharma.