Expansion and investments are expected to drive the UAE logistics sector growth

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The UAE founders of have realised in early stage that the logistics sector is among the key sectors driving the UAE’s economic growth. That’s why massive development was initiated in ports and shipping infrastructure. This vision is paying off now according to the report released recently by the Dubai Chamber of Commerce in collaboration with Business Monitor International.

Diverse infrastructure options

The UAE has an integrated infrastructure in terms of ports capabilities, which enables shipping companies to choose the appropriate port according to their needs. The following are the most important features of the largest ports in the country:

  • Jebel Ali Port: Considered one of the largest 10 ports in the world
  • Sharjah Port: Distinguished from other ports in the UAE being located on the coasts of both the Arabian Gulf and the Gulf of Oman
  • Khalifa Port: This port is characterized by the depth of its basin, which allows the moorage of large vessels

Achievements of the leading ports

Container traffic at Dubai’s Jebel Ali port is forecast to Jebel Ali witness a CAGR of around 6% between 2017 and 2021. Over the next five years, container traffic in Sharjah is forecast to record a CAGR of around 3.2%, while container traffic handled at Abu Dhabi’s Khalifa Port will likely increase at a CAGR of 13.5% over the same period.

The national shipping achievement

The UAE has the largest container port between Singapore and Rotterdam, while the country serves as a maritime hub for the Middle East region. In 2016, container port traffic in the UAE amounted to 21.3 million TEUs. This figure is expected to rise 5% to 22.4 million TEUs in 2017, and increase further to reach a record of 28.4 million TEUs by 2021.

Future development

The analysis highlighted the potential impact of expanding ports in the UAE and further developing their facilities. Jebel Ali Port, managed by DP World, is investing $1.6 billion with the aim of increasing the port's total capacity to 22.1 million containers. Abu Dhabi Ports Company plans to expand Khalifa Port by 100 square kilometres by mid-2018 to accommodate more industries and keep pace with rapid growth within the sector.

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