The United Arab Emirates, Saudi Arabia and Qatar continue to rank among the world’s top 10 emerging markets, improving or holding steady in key areas while neighbouring Oman, Bahrain and Kuwait have lost ground in the 15th annual Agility Emerging Markets Logistics Index.
The 50-country index ranked UAE third after China and India meaning it has held its rank from 2023, as has Saudi Arabia in sixth and Qatar in seventh. Oman (15), Bahrain (16) and Kuwait (21) all fell in the rankings.
In Agility’s survey of 830 logistics industry executives, respondents say Saudi Arabia and UAE are doing the most among GCC countries to accelerate economic diversification and lessen reliance on income from oil and gas.
UAE ranks first for best business fundamentals with Saudi Arabia third in that category. Even so, logistics professionals in the survey identified further improvements for small businesses and multi-nationals as the most powerful drivers of continued diversification for all GCC countries.
The survey and Index are Agility’s 15th annual snapshot of industry sentiment and ranking of the world’s 50 leading emerging markets. The Index ranks countries for overall competitiveness based on their logistics strengths, business climates and digital readiness — factors that make them attractive to logistics providers, freight forwarders, air and ocean carriers, distributors and investors.
UAE and Saudi Arabia rank in the top 10 in every category. Qatar ranked among the top 10 in all categories except international logistics opportunities, where it was 20th. The only top 10 ranking for Oman, Bahrain or Kuwait was Bahrain at No. 8 for business fundamentals.
Half of the logistics professionals surveyed a global recession in the coming year – down from nearly 70% a year ago. Executives surveyed say they are battling higher costs, reducing dependence on sourcing from China, and planning to boost investment in Africa despite seeing emerging markets investment overall as somewhat riskier.
Transport Intelligence (Ti), a leading analysis and research firm for the logistics industry, has compiled the Index since it was launched in 2009.
John Manners-Bell, Chief Executive of Ti, said: “Supply chain managers are still coming to terms with the political and economic instability characterising the post-COVID global economy. Geopolitical relationships are changing rapidly, and this is having a major impact on international trade and risk profiles. Businesses need to be alive to the opportunities and threats that exist in emerging markets and use data, such as that the Agility Emerging Market Logistics Index, to inform agile decision-making.”
