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Gulf States ranked near the top in the top 50 emerging markets

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DUBAI – Asdaf News:

Gulf economies, which beat most countries in the 14th annual Agility Emerging Markets Logistics Index, will benefit most from innovation and support for small firms, according to global supply chain experts.

In the 50-country Index, UAE came in third place behind China and India. Saudi Arabia ranked sixth. Both nations were among the top 10 in each of the four areas of the Index, including local logistics, global logistics, business fundamentals, and digital readiness. With the exception of international logistics, where it ranked 19th, Qatar was in the top 10 in every category.

The GCC nations once again dominated the rankings for business fundamentals, which contrast the judicial, regulatory, and tax systems of emerging market nations. The best business climate was ranked by UAE (1), Qatar (2), Saudi Arabia (3), Oman (5), Bahrain (6), and Kuwait (11).

Kuwait (ranked No. 15 overall) made the most progress in enhancing its competitiveness among the six GCC economies, with gains across the board. Oman moved up five points to No. 10 in terms of digital readiness, and Bahrain moved up six spots to No. 16 among GCC nations.

The Index and a survey of 750 executives from the global logistics sector make up Agility’s 14th annual overview of industry sentiment and ranking of the top developing markets in the globe. Based on elements that appeal to distributors, investors, air and ocean carriers, logistics service providers, and freight forwarders, the Index evaluates nations for overall competitiveness.

The GCC countries, all of which are attempting to lessen dependency on oil and gas by increasing private-sector growth, were all asked to list the most significant drivers of economic diversification in the study. Industry executives were asked to respond. The key factors, according to the respondents, are technological advancement and innovation, the environment for small businesses, infrastructure development, regional and global integration, business conditions for multinational corporations, a skilled labor force, ending energy subsidies, and providing opportunities for women in the workforce.

Outside of the GCC, there was significant volatility in the rankings.  Conflict, sanctions, political tumult, economic missteps and continued COVID fallout damaged the competitiveness of Ukraine, Iran, Russia, Colombia, Paraguay and others. Among countries leaping forward in certain categories: Bangladesh, Pakistan, Jordan, Sri Lanka and Ghana.

2023 Index Highlights

SURVEY

  • Net-Zero Commitment – 53% of logistics executives say their companies have committed to net-zero emissions, and another 6.1% say their businesses have already achieved net-zero.
  • Climate Change – Half say climate change is a concern their businesses must plan for, while another 18% say it is already affecting them.
  • Emerging Markets – 55% say they will be more aggressive in emerging markets expansion and investing or leave their existing plans untouched despite fears of recession.
  • Digital Forwarding – Respondents say the biggest advantage is improved tracking and visibility; the biggest disadvantage is error/exception management.
  • Ukraine – 97% indicate that their businesses have been hurt by higher costs or other supply chain challenges as a result of the Russia-Ukraine conflict.
  • China – There is an even split between companies planning to reduce their reliance on Chinese sourcing and those planning to expand in China. But only 11% of respondents say their company’s manufacturing footprint is the same as before COVID.
  • Africa – Logistics executives see big benefits for Africa from the African Continental Free Trade Agreement (AfCTA), despite slow implementation of the agreement.

COUNTRY RANKINGS

  • In the Middle East and North Africa, overall rankings were: UAE (3); Saudi Arabia (6); Qatar (7); Turkey (11); Oman (12); Bahrain (14); Kuwait (15); Jordan (16); Morocco (20); Egypt (21); Tunisia (32); Lebanon (33); Iran (36); Algeria (41); Libya (50).
  • Rankings in Sub-Saharan Africa: South Africa (24); Kenya (25); Ghana (29); Nigeria (34); Tanzania (37); Uganda (43); Ethiopia (45); Mozambique (46); Angola (48).
  • Overall Index rankings in Asia: China (1); India (2); Malaysia (4); Indonesia (5); Thailand (8); Vietnam (10); Philippines (18); Kazakhstan (22); Pakistan (26); Sri Lanka (30); Bangladesh (35); Cambodia (38); Myanmar (49).
  • Rankings for Latin America: Mexico (9); Chile (13); Brazil (19); Uruguay (23); Peru (27); Colombia (28); Argentina (31); Ecuador (39); Paraguay (40); Bolivia (44); Venezuela (47).
  • In Europe: Russia (17); Ukraine (42).

Transport Intelligence (Ti), a leading analysis and research firm for the logistics industry, compiled the Index since it was launched in 2009.

John Manners-Bell, Chief Executive of Ti, said: “It is not possible to overstate the challenges faced by emerging markets countries in the past couple of years. Geopolitical tensions have combined with financial uncertainty and the lingering effects of the pandemic to create an ever more complex business and investment environment. The role that the Agility Emerging Market Logistics Index plays in providing insight into this volatile, uncertain environment landscape is more critical than ever.”

 

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