E-Paper
Sign In
How logistics is powering a diverse and resilient economy in major GCC countries
There is no denying that international trade is set to grow exponentially. Within the region, also other countries have been emerging as key trade hubs
- PUBLISHED: Sat 7 Feb 2026, 12:29 AM
- By:
- Samer Kaissi
The global economy is at a critical juncture, as there are trade tensions and geopolitical conflict. Against this backdrop, the GCC region has remained a beacon of strength and resilience. Dubai’s economy surged by 4 per cent in Q1 2025, recording a GDP of AED119.7 billion. Saudi Arabia has also made rapid progress, with the World Bank raising the nation’s 2025 economic growth forecast to 3.2 percent. In particular, the Kingdom’s tourism sector had an 8 percent growth forecast this year.
In the UAE, a rapidly growing population, driven by a strong inflow of expatriates, tourism and a rise in global investors, has ensured that Dubai remains largely unscathed from ongoing tensions. In fact, the emirate looks poised to navigate strong consumer demand in 2025, on the back of well-performing sectors, including real estate, tourism, hospitality, entertainment, and healthcare.
Recommended For You
It is hard to imagine the success of any of these industries without mature and efficient logistics. Although many businesses are re-evaluating and adapting their supply chains to safeguard profitability and strengthen resilience in the wake of the latest tariffs, there is no denying that international trade is set to grow exponentially. Within the region, also other countries have been emerging as key trade hubs. For instance, Qatar’s strategic location and advanced infrastructure place it at the forefront of global trade, opening up access to markets in Africa, Asia, and Europe.
In Dubai, trade has always been a part of the socio-economic fabric. But over the past decade, logistics has emerged as a vital cog in the economic growth wheel, supporting the expansion of key sectors: Jebel Ali Port, one of the busiest ports regionally and globally, has grown in size and stature, with the capacity to handle 19 million containers annually. Coupled with two world-class airports, Dubai is home to infrastructure that facilitates fast, profitable, and efficient air, sea and road transportation locally and internationally.
This connectivity is critical for a high-performing logistics sector because each item being transported is unique, and therefore requires stringent criteria to be met so that goods arrive safely and on time.
Take Dubai’s thriving hospitality industry, which supports 80% of the 340 fine dining restaurants operating in the UAE. For Dubai to retain its position as a regional, and indeed, global culinary hub, it must ensure freshness and integrity of perishables. This is essential as even the tiniest temperature differences or fluctuations can result in product spoilage, degradation, or even complete loss, leading to financial losses, reputational damage, and legal liabilities.
In the pharma industry, the need for specialised cold chain solutions to support life sciences is pivotal. Per capita spending in the UAE in the healthcare industry has grown consistently, and there are over $65 billion worth of healthcare investments in Saudi Arabia, alone. This evolution calls for GDP-certified pharma hubs, expanded cold chain capacity, temperature-controlled vehicles and advanced packaging solutions to support the launch of new national clinical trial centers in the region.
Logistics operators, including DHL, have announced plans to invest €2 billion globally in healthcare logistics by 2030, with 25% allocated to EMEA, to support this demand. But it isn’t just healthcare that calls for reliable transport; cold chain networks are essential to meet the region’s food security and import-reliance challenges. The UAE’s National Food Security Strategy 2051 has outlined plans to diversify import sources and develop sustainable local production to protect its food supply.
Transporting food and medicines across international borders at consistent temperatures is not an easy feat, particularly as regulatory requirements for handling and transporting temperature-sensitive products become even more stringent. Fortunately, tech-enabled supply chains are making it easier for businesses to comply with industry standards and ensure freshness through every stage of a product’s journey.
Data can effectively optimise supply chain management, from forecasting demand to mitigating risks. Digitalisation, including predictive maintenance, warehouse robotics, and customer service chatbots, have become indispensable to improve efficiency and responsiveness. More recently, AI-driven forecasting and route optimisation is helping reduce delays and improving cost efficiency across a range of functions.
This is particularly evident in the construction, tourism and entertainment sectors, where the timely movement of building materials, marketing goods, promotional materials, and B2C items, is crucial to get events and exhibitions off the ground. The UAE’s rapidly-expanding real estate market demands tailored logistics solutions for interior fit-outs and a robust furnishing supply chain – something that only logistics operators with multimodal capabilities and regional expertise are equipped to deliver.
Even in the aviation sector, as national carriers in the region expand their fleets and launch new routes, there is increased demand for logistics services across luxury retail, hotel operations, and hospitality supply chains. Given that businesses in the present day are operating in an environment where supply chain shocks have become frequent, more reliable, scalable, and flexible logistics solutions are critical to maintain operational continuity and secure economic growth.
As the UAE aims to double its GDP to over $800 billion by 2030, logistics will play a vital role in sustaining development initiatives. The region’s strategic location and world-class infrastructure already give it a competitive edge but investments in logistics infrastructure, including specialised transport solutions for temperature-sensitive products, state-of-the-art technologies for temperature monitoring, control, and correction will ensure greater cold chain capacity and sustained economic growth.
The writer is CEO Gulf Cluster DHL Global Forwarding MEA.