Dubai's commercial transport sector boosts economy with Dh16 billion contribution

The sector reflects an increase of 26% growth in activities in 2022

by

Nandini Sircar

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File photo
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Published: Sun 16 Jul 2023, 3:31 PM

Dubai’s commercial transport activities contributed Dh16 billion to the emirate’s economy in the year 2022, reflecting a 26 per cent increase from the previous year.

This was revealed by the Roads and Transport Authority (RTA) which stated that over 7,000 companies employ approximately 242,000 individuals.


Emphasising the importance of the sector involved in commercial transport activities, which serves as the foundation of Dubai's flourishing economic and commercial environment, Mattar Al Tayer, Director-General, Chairman of the Board of Executives Directors of Dubai’s Roads and Transport Authority (RTA), said: “The sector is critical in achieving the goals of Dubai Economic Agenda (D33) which aims to position Dubai among the top 3 economic cities globally. It also contributes to accelerate the emirate’s growth by assuring an uninterrupted flow of goods and global supply chains and enhancing Dubai's reputation and competitiveness besides bringing about positive social impacts across several other sectors.”

He stressed that the commercial transport activities sector has experienced consistent economic growth over the last two years fuelled by e-commerce.


Transportation hub

“Dubai is a significant logistical hub for shipping and distribution in the region. Over 7,000 companies operate in the sector, which is a remarkable 26 per cent growth in 2022 compared to the previous year," Al Tayer added.

"The number of registered commercial vehicles operated by these companies exceeds 300,000, reflecting a 16 per cent growth rate compared to 2021. The commercial and logistical transport sector contributes about Dh16.1 billion to Dubai's economy, with Dh8.5 billion constituting direct contributions and Dh7.6 billion accounting for indirect contributions.”

RTA is presently engaged in the development of seven projects and initiatives in partnership with the private sector. These endeavours encompass the implementation of the digital adoption project, aimed at boosting the efficiency of transport and leasing activities by fostering digital transformation.

Additionally, there are efforts underway to revise business requirements to align them with government directives, facilitating a smoother process for conducting business.

Implementing regulations governing 83 activities

RTA is also focused on implementing superior standards for regulating and governing the transportation and leasing sectors, incorporating best practices in these areas.

“The projects also include fostering collaboration with partners to support the collective efforts of engaging transport and leasing companies as well as stakeholders in government agencies in advancing the services provided and revamping the regulation and governance of the transportation and leasing activity sectors to boost the sustainability and competitiveness on a global scale. The measures also include implementing regulations governing the activities of 83 transportation and leasing activities, with special emphasis on crucial areas such as transport, leasing services, and the management of transport services activities,” Al Tayer added.

Development of truck rest areas

Currently, the RTA is collaborating with the private sector to build three all-inclusive truck rest areas.

These designated spaces cover an expansive area of 226,000 square metres and have the capacity to accommodate approximately 500 trucks and heavy vehicles.

Additionally, there are 16 supplementary truck rest stops situated along various major roads in Dubai. These establishments play a crucial role in enhancing traffic safety by minimizing accidents caused by driver exhaustion due to prolonged driving.

Furthermore, they promote seamless traffic movement during truck ban periods and effectively tackle the problem of trucks parking on main roads and residential areas.

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