Dubai's Potential As An Integrated Logistics Hub

Abstract

The objective of this study is to examine the potential of Dubai as an integrated logistics hub, identify gaps and recommend polices accordingly. The key features of an integrated logistic hub are identified. The logistics performance of Dubai is compared to that of the top ranked logistics performing country, Singapore. Gaps that need to be looked into for Dubai to attain a similar status as Singapore are identified. The views of company managers in Dubai with regards to logistics facilities in Dubai are elicited using a survey method and analyzed. The study reveals that Dubai requires further development and investment to match Singapore’s performance as a logistics hub. The survey results show that high rents and costs of operation will adversely impact on Dubai’s status as a logistics hub. There also appears to be a logistics skill gap amongst the workforce in Dubai and this must be addressed and e-commerce must be encouraged. The regional competitors in Saudi Arabia, Egypt and Kuwait pose a challenge to Dubai’s standing as a logistics hub for the region. The financial sector should be developed along with public institutions to facilitate a seamlessly integrated business environment. Much of the emphasis in developing Dubai as a logistics hub is on the physical infrastructure where the developments have been impressive. However, emphasis also needs to be given to containing inflation, developing professionals’ skills, expanding the financial sector and ensuring that government regulation is conducive to business.