- UAE logistics market on upward trajectory with projected 8.41 percent growth by 2026*
- Catalysts for digital transformation within the industry include digitized customer interactions, improved operational efficiencies, enhanced data ecosystems, increased door-to-door business and public-private partnerships
Abu Dhabi, UAE: ADQ, an Abu Dhabi-based investment and holding company, today published its ADQ FWD paper, which examines the opportunities and areas for investment to accelerate digital capabilities in the logistics industry in the UAE, promoting economic competitiveness and sustainable growth in the region.
With the UAE’s logistics market predicted to grow by 8.41 per cent with an approximate value of $31.4 billion by 2026*, the paper, Destination Digitalization: The Future of Logistics, explores how the UAE can use this growth to build a more resilient and agile mobility and logistics sector anchored on data analytics, automation, and digital platform solutions to increase supply chain productivity, minimize costs, and foster greater transparency.
The acceleration of e-commerce over the past two years has also triggered a shift towards digitalization in the sector, encouraging logistics companies to prioritize optimal distribution through automation, internet of things, blockchain, and new warehouse management procedures.
The paper identifies five key drivers to foster the emergence of a data-driven interconnected global logistics network for a more secure and futureproofed supply chain:
- Digitized customer interactions: Improves speed and quality of service while lowering the cost of sales, increasing personalization and rising customer targeting precision.
- Improved operational efficiencies: Advanced data analytics can significantly boost asset utilization, and automation - such as predictive maintenance - can reduce operational costs.
- Enhanced data ecosystems: Collaboration between carriers, terminals, and customers to share data pools will create value and facilitate greater operational efficiencies.
- Increased door-to-door business: Extended digital channels in the movement of shipments can increase the share of door-to-door business, particularly for simple transactions.
- Public-private partnerships: Cooperation among industry players to build innovative fit-for-purpose solutions at scale will accelerate digital adoption across the supply chain.
*Compound annual growth rate (CAGR)
As the UAE accelerates its economic development, the national supply chains that are essential to facilitating global trade will be at the heart of this transition. Throughout ADQ’s mobility and logistics portfolio, investments are being placed into digital solutions that modernize processes and enhance resilience and productivity in the supply chain. This paper emphasizes ADQ’s focus on ensuring commercial activities continue at speed and scale for the long-term digitalization is embedded in the future of logistics.
ADQ FWD is a platform that brings together industry experts, government, and advocacy leaders to discuss and address matters of economic and strategic importance.
The paper can be accessed at Mobility and Logistics (adq.ae)
Established in Abu Dhabi in 2018, ADQ is one of the region's largest holding companies with direct and indirect investments in more than 90 companies locally and internationally. Both an asset owner and investor, ADQ’s broad portfolio of major enterprises span key sectors of a diversified economy, including energy and utilities, food and agriculture, healthcare and pharma, and mobility and logistics, amongst others. As a strategic partner of Abu Dhabi’s government, ADQ is committed to accelerating the transformation of the emirate into a globally competitive and knowledge-based economy.