Chinese companies to invest $4-bn in UAE logistics projects

RetailME Bureau

The logistics industry in the UAE is in for big growth with more logistics parks coming up in Dubai and Abu Dhabi. Chinese companies are set to invest more than $4 billion in logistics projects in Dubai and Abu Dhabi, according to the National Association of Freight and Logistics (NAFL).

“Logistics business is in for a boom. Many projects are being built for Expo 2020 and Chinese investors are coming to Abu Dhabi and Dubai. There will be large logistics parks in Jebel Ali and one near the Expo venue. One is for food processing and the other is for manufacturing and exporting. There will be $4 billion (AED14.68 billion) investment by Chinese companies. Abu Dhabi will also have a huge logistics project that will boost the trading sector in the UAE,” said Nadia Abdul Aziz, president, NAFL and vice president, global extended board of the International Federation of Freight Forwarders Associations (FIATA).

“NAFL continues to build government relations to always promote the industry and assist investors to come and invest in the UAE. More importantly, the Association’s mission is to raise the logistics service industry standards in the UAE,” she added. “We are working to raise the industry standards, by training, networking, solving industry issues, by looking at opportunities to help the members, and by building platform for the members to market their companies. We also represent the UAE in international events and attract foreign direct investment (FDI) to the country.”

Commenting on the state of the logistics industry, Abdul Aziz observed that consolidation is taking place in the logistics industry in the UAE, owing to more e-commerce movements and distribution. “There are people buying companies and joint ventures are taking place among shipping lines and freight forwarding companies.”

NAFL’s strategy is to encourage young students to join the growing logistics sector. “In line with the UAE strategy, we will have sharper focus on empowering and training UAE nationals in this sector. As part of it, the Association offers scholarships for UAE nationals in the freight industry courses. The government is spending heavily on logistics and infrastructure sectors which have seen the second largest job growth after tourism,” Abdul Aziz concluded.

 

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