Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, on Wednesday tweeted about the launch.
“A year ago, we launched the ‘Dubai Silk Road’ as part of the 50–year Charter. Today we launched the global logistics passport at Davos, the world’s largest economic gathering, a move that confirms our progress in achieving our strategic project to ensure a promising future for our economy, with solutions that reiterates Dubai’s position as a link supporting global trade,” Sheikh Mohammed tweeted.
"Trade is a major asset of the UAE economy. We have a long history and vast long experience in trade that qualifies us to play a leading role that supports the future of international trade and ensures equal economic opportunities for all. We look forward to working with our partners to make the Dubai Silk Road a guarantee for a prosperous economic future for the region and the world,” Sheikh Mohammed tweeted.
The effort is aimed at improving quality of service and attracting a higher share of international trade at a time when Dubai is preparing to host Expo 2020.
Sultan bin Saeed Al Mansoori, Minister of Economy of the UAE, said: "The World Logistics Passport marks the beginning of the implementation of the Dubai Silk Road strategy that will lead to a new phase of economic growth. We aim to further boost Dubai’s position as a global economic and business hub, powered by our exceptional connectivity and logistics."
How does it work?
The World Logistics Passport has been designed to overcome non-tariff trade barriers, such as logistics inefficiency that currently limit the growth of trade between developing markets.
South-South trade is already worth an estimated $4.28 trillion annually, more than half of total developing countries’ exports in 2018, according to the WTO. However, many countries in Asia, Latin America and Africa have much smaller market shares in key export products in each other’s markets compared to their shares in developed countries, indicating the potential for further substantial growth and boosting prosperity.
According to a statement from DP World, World Logistics Passport is designed as a points loyalty scheme. It will incentivise companies and traders to use Dubai’s world-leading logistics facilities in return for cost and time savings and enhanced customs clearances.
Not only will this increase the ease of moving goods in Dubai, it will also foster more optimal direct trade routes between Latin America, Africa and Asia, the statement said.
Sultan Ahmed bin Sulayem, Group Chairman and CEO, DP World, and Chairman of Ports, Customs and Freezone Corporation (PCFC) in Dubai said: “DP World has built a network of ports, economics zones, and logistics operations across six continents to enable smarter trade by offering cargo owners and consolidators of demand end-to-end, digitised supply chains."
(Writing by Seban Scaria email@example.com, editing by Cleofe Maceda)
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