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$26 Billion in Investment Boosts UAE Logistics

DUBAI — Global investors are eager to share in the UAE’s efforts to reinforce its position as a global logistics hub, where authorities have already spent around $26 billion to develop the country’s air and maritime infrastructure, a leading exhibition organiser said 
on Thursday.

The high-profile projects underway in the UAE include the $7 billion Dubai World Central airport initiated by the Dubai Civil Aviation Authority, the Abu Dhabi Airport Company’s $6.5 billion expansion program for the UAE capital’s airport — including a logistics park — and a $1.6 billion expansion programme for the Jebel Ali Port by Dubai Ports Authority, said the Hannover-based exhibition company 
Deutsche Messe.

A recent research report from Standard Chartered Bank said the logistics industry could emerge as the United Arab Emirate’s biggest asset outside 
of oil.

“More than a ‘stop-off’ point, the UAE is becoming a logistics hub that serves a vast population, with its location at the crossroads of major shipping routes between Europe, Asia, Africa and the Middle East, while one-third of the world’s population is also located within four hours by plane,” said Philippe Dauba-Pantanacce, senior economist at Standard Chartered Bank.

Although billions of dollars have been invested to develop the warehousing and transportation infrastructure in Dubai — with the construction of new projects such as the Dubai Logistics City and Al Maktoum International Airport, as well as expansions to current developments such as Jebel Ali Port and Dubai Cargo Village — other emirates in the country have also increased their focus on logistics in recent months.

Ajman Free Zone Authority or AFZA secured Dh54 million of financing earlier this year to complete the third phase of its large-scale warehousing complex, while Abu Dhabi Airports Company, or Adac, has announced plans for logistics parks to support its airports in Abu Dhabi and Al Ain.

According to Khalifa Mohamed Al Mazrouei, chairman of ADAC, the Middle East remained an expanding market for the logistics and aviation sectors, due to its strategic location and growing economic strength despite the current economic situation.

“Projections show the region will continue its strong growth and we are confident there is demand to support our logistics parks at Abu Dhabi International Airport and Al Ain International Airport.”

Deutsche Messe Dubai Branch, which is organising the CeMAT Middle East show for internal logistics and materials handling in Dubai in February 2010, said the positive attitude of industry players towards the trade events reflected the region’s excellent market conditions “as private and public sector organisations continue to invest for the long-term through various infrastructure development projects and 
technology adoption.”

The inaugural Dubai edition of CeMAT will be held from February 9-11, 2010, at the Dubai International Convention and Exhibition Centre.

It will host world leaders in mechanical handling, warehouse technology, workshop equipment, packaging and order picking equipment systems for materials handling technology, warehouse technology, loading technology, internal logistics — systems and software, services and outsourcing, said Angela Schaschen, Managing Director of Deutsche Messe Dubai Branch.

· issacjohn@khaleejtimes.com