It expected the freight market in the UAE to generate $31 billion by 2026
FedEx: Investing in logistics is crucial to the success of import and export
Tarek Heneidy: “The logistical infrastructure of the UAE and India has a tremendous impact on trade between the two countries and the Gulf region more broadly.”
Tariq Huneidi, Vice President of Operations for the Middle East and Africa at FedEx Express, said that one of the most important achievements made by the UAE during the past few decades is the consolidation of the country's position as a major logistical gateway for the flow of international trade, noting that with exceeding diplomatic relations between UAE and India For more than five decades, the UAE has emerged as one of India's most important trading partners in the Gulf region.
He added to «Emirates Today» that the comprehensive economic partnership agreement signed in February 2022 between the UAE and India enhanced new business opportunities for small and medium-sized enterprises, stressing that investment in logistics services is essential to the economy of the UAE and India alike, which is crucial to the success of operations Import and Export.
Heneidy revealed that it is estimated that the Indian logistics services market will reach $380 billion by 2025, while the freight and logistics market in the UAE is expected to generate more than $31 billion by 2026.
He continued, "The logistical infrastructure of the UAE and India, coupled with free trade policies, bilateral agreements, growing investments, and trade ties, will have a tremendous impact on trade between the two countries and the Gulf region more broadly, resulting in a sustainable and self-reliant economy."
Heneidy said: “Small and medium-sized companies constitute a fundamental pillar of the economy in the UAE and India, and in order to maintain its resilience and continued prosperity in difficult times, it must first be able to manage and transport goods without any obstacles, and here comes the role of the Comprehensive Economic Partnership Agreement.”
Heneidy expected that the agreement would lead to an increase in the total value of bilateral trade in goods by 120%, to reach more than $100 billion within five years, pointing out that this highlights the urgent need for a strong logistics sector to push bilateral trade to the next level.
"The UAE is India's third largest trading partner and second largest export destination," he said.
He explained that the Comprehensive Economic Partnership Agreement allows small and medium-sized companies in both countries easy access to companies and dealers in 11 main service sectors, and more than 100 sub-sectors, by reducing 80% of customs duties on goods exchanged between the UAE and India, and ensuring that all fees are canceled within 10 years.
Jewelry and medicines
Vice President of Operations for the Middle East and Africa at FedEx Express, Tarek Heneidy, revealed that trade in some sectors, such as precious stones and jewelry, has witnessed tremendous growth since the signing of the Comprehensive Economic Partnership Agreement.
He expected trade across the pharmaceutical, medical device and automotive sectors to increase significantly, leading to more investment in smart and specialized supply chain networks, noting that expensive commodities such as precious stones and jewelry will benefit from digital operations of customs documents.
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