Nowadays, it is difficult to overestimate the role of passengers and cargo logistics when the large and medium-sized business is not more acting within one country, but goes to the international level. XXI century is characterized by the rapid development of logistics in most countries of the world. In recent years, several large scale logistic projects have been carried out in South-West Asia, the Gulf States, and the UAE, particularly in Dubai.
About Dubai: logistics business development and prospects
The historical development of Dubai was impressive and carried out steadily until the second half of twenties century when its growth has dramatically accelerated. In 1967, the port for 35 piers was built. Later, the second deep-water port was constructed, which today is one of the largest container ports in the world.
At the same time rapid development of tourism and trade has been launched. Over the past decade, the Dubai has managed to establish itself as the elite tourism center. The development of the tourist business has led to the construction of large projects such as the project of the world’s tallest building “Burj Khalifa”, another one is the artificial island The Palm Jumeirah which can be see even from the space, etc.
To implement its ambitious constructing projects in the city, Dubai Sheikhs have decided to make Dubai to become the world’s passengers and cargo logistics center. We are talking about the already existing logistics infrastructure as well as the Dubai Logistics City, which is forming the part of Dubai World Trade Center.
Nowadays, we can definitely say that Dubai logistics is not only one of the best shaped, clear and developed business areas of the world, but it also keeps continuous and rapid development offering visitors, and business the opportunity to efficiently conduct business in any field due to access to the highly developed cargo and passengers logistics facilities.
The Emirates passengers and cargo logistics business sector is the important component of the economy. Nowadays the volume of container cargo transportation in the UAE can be characterized by the huge volume of container transportation. The container terminal Jebel Ali is the sixth largest in the world. In terms of passenger transportation the UAE is aiming to be the world’s leading position in the nearest future whereby it already has the 3rd place in the world.
Due to the advantages of its location and development of logistics facilities the UAE has the position of the significant global player on the passengers and cargo logistics market with billions of dollars of investment and the ongoing challenge of the country to become a leading global player on the logistics market which provides the logistics business in UAE enormous opportunities.
The favorable location and proximity to such fast-growing countries in the regions as Africa, China and India, with the total population of 1.4 billion people, the UAE took the serious stand in terms of cargo trade flow passing through the country by sea and by air.
Due to the reasons mentioned above, the expansion of business cargo and passengers logistics services for logistics companies in the UAE offers the new prospects for business growth.
According to the latest data, the expected volume of logistics services in the UAE is supposed to hit the target of USD 9 billion by 2014.
Here is the list of the largest local and international logistics companies present on the UAE market:
- Agility
- Al-Futtaim Logistics
- Al Majdouie
- Aramex
- BALtrans
- Danzas
- Gulf Agency Company (GAC)
- Kuene & Nagel
- Liberty Logistics
- Momentum Logistics
- Swift Freight
- GAC Dubai
- Danzas
- BALtrans
- Al Majdouie
- Liberty Logistics
- Momentum Logistics
The ratio of import and export puts the UAE on the 3rd place in the world as the business re-export world center after Singapore and Hong Kong.
The growth factors, other than geographical location, are the ongoing multi-billion dollar investments in the logistics sector of the UAE economy. At the same time this development is supported by competent economic diversification, which includes not only passengers and cargo logistics, but also manufacture, banking and service sectors, as well as infrastructure projects for business and residence in the country.
In addition to the major sea and air logistics centers, the UAE, together with other countries in the Gulf region, is actively implementing the project on construction of the railway which would connect UAE with the other countries of the region.
Besides that, the UAE provides the following possibilities for the logistics business:
- Profitable type of companies with tax rate of 0% for most type of the business activities including, for example, the management of the commercial sea fleet.
- The presence of your company in the important for logistics region can provide the new opportunities for the development of your business.
- The presence of the large number of logistics companies enables efficient outsourcing of logistics operations.
- Banking – quick and cost- efficient.
- Management of service ships.
- Tax optimization for business.
- Risk reinsurance.
- The management company – signing contracts with contractors, financial transactions with foreign contractors, security of the important flow of documents.
- Delivery of goods produced in Dubai.
- Financing through a company in the UAE.
- Opportunity to redirect part of cargo through Dubai as one of the global centers of logistics – price optimization.
If you need to register logistics company / business in Dubai, UAE, our specialists will provide the compete legal support within opening the company and obtaining all the necessary permits and licenses.
