Dubai, UAE: The Chartered Institute of Procurement & Supply (CIPS) has today launched its quarterly CIPS Risk Index, powered by Dun & Bradstreet, for Q4 2017. The latest results revealed that the UAE supply chain outlook remained positive for four quarters in a row.

According to the Index, the UAE continued to retain its position in the ‘green category’ for its positive supply chain environment. This follows a global trend of improving economic conditions, despite global challenges such as trade wars and protectionism on the horizon.

The UAE’s positive supply chain environment follows an acceleration in growth for the world’s major economies, contributing to reduced supply chain risk. In fact, the CIPS Risk Index score for Q4 2017 saw a decline in overall operational risks to global businesses for the fourth time in a row.

Sam Achampong, Head of CIPS MENA said: “This edition of the CIPS Risk Index shows the UAE as a driver of stability and positive economic conditions in the MENA region. As a strong economy with an overall safe environment, the UAE continues to enjoy its position as a ‘green category’ country, indicating its positive supply chain environment outlook. The UAE fosters innovation in technology and invests heavily in infrastructure in line with the country’s government agendas. Leading up to Vision 2021, the supply chain environment will no doubt continue to improve, further establishing the UAE as a leading economy on the world stage.”

Looking at the wider Middle East and North Africa (MENA) region, there were no high-level changes in the Index in 2017. In fact, the supply chain environment for countries facing some political uncertainty improved and, in turn, benefited cross-border supply routes. As oil prices continue to strengthen and business conditions improve in the region, a delicate balance remains between regional supply chain considerations and geopolitical challenges.

John Glen, CIPS Economist said: “Given the threats looming over the global economy, it was a surprise to see overall risk in supply chains improving again for another quarter and the fourth in a row at the end of 2017. The overall Index figure was at its lowest since the first quarter in 2016, as a period of stability descended over global supply chains, but the threat of trade wars between the US and China, also the UK and Europe may severely impact this trend for improvement.

Though the Index reported no change to risk in the US and Canada, the undercurrents are showing there are more expected improvements to come in 2018 with predictions for the strongest rebound in economic growth since the recession.

The drivers for this growth appear to be good labour conditions with more employment in more regions, consumer confidence resulting in strong spending patterns, and businesses benefitting from recent tax breaks as they re-invest their spare capital into business opportunities and higher wages.

Political threats, however, could create an unwelcome adjustment in this trajectory of strong global economic growth, resulting in an undesirable start to what was a promising 2018.”

The quarterly CIPS Risk Index, powered by Dun & Bradstreet, tracks the impact of economic and political developments on the stability of global supply chains. It analyses the business continuity factors contributing to supply chain risk across the world, weighing each score according to that country’s contribution to global exports.

About the CIPS Risk Index, powered by Dun & Bradstreet:

First launched in April 2014, the CIPS Risk Index, powered by Dun & Bradstreet, is a composite indicator of pressures acting upon supply chains globally. The Index analyses the socio-economic, physical trade and business continuity factors contributing to supply chain risk across the world, weighting each score according to that country’s contribution to global exports.

The Index helps sourcing professionals understand the risks to which their supply chains are exposed, articulate questions and scenarios for key suppliers, inform assurance activities, check the readiness of contingency plans, support the negotiation of risk transfer in contracts, and establish factors which may impact the financial stability of tier one and sub-tier suppliers upstream.  Regular production of this Index will help procurement and supply professionals communicate and justify risk-informed sourcing decisions and support effective Supplier Relationship Management. 

About the Chartered Institute of Procurement & Supply:

The Chartered Institute of Procurement & Supply (CIPS) is the leading international body representing purchasing and supply management professionals.  It is the worldwide centre of excellence on purchasing and supply management issues.  CIPS has a global community of 200,000 in 150 different countries, including senior business people, high-ranking civil servants and leading academics.  The activities of purchasing and supply chain professionals have a major impact on the profitability and efficiency of all types of organisation and CIPS offers corporate solutions packages to improve business profitability.  www.cips.org, @CIPSnews. 

About Dun & Bradstreet

Dun & Bradstreet (NYSE: DNB) grows the most valuable relationships in business. By uncovering truth and meaning from data, we connect our customers with the prospects, suppliers, clients and partners that matter most, and have since 1841. Nearly ninety percent of the Fortune 500, and companies of every size around the world, rely on our data, insights and analytics. For more about Dun & Bradstreet, visit DNB.com. Twitter: @DnBUS

© Press Release 2018

Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.

The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.

To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.