The next phase of growth in the Middle East will be primarily driven by the region’s efforts in building modern warehouses and transportation infrastructure, according to a local news outlet.
Shailesh Dash, CEO of Al Masah Capital, told The Khaleej Times that the Middle East, led by the United Arab Emirates (UAE), has become “one of the most important hubs in the ensuing changing global trading lanes”.
“As the MENA (Middle East and North Africa, ed.) countries pursue political transformation and economic diversification, transportation and logistics investment are increasingly becoming the cornerstone to its future growth,” he said.
“Leading local and global manufacturers have started setting up their regional headquarters and distribution facilities in MENA, enthralled by the improving transportation links and modern facilities.
“This, in turn, has also led to the set-up of companies specialising in logistics, transportation, freight handling, warehousing, packaging and supply chain management in the region to meet the growing demand.”
While Dash warned that the transport and logistics industy in the region is still “highly fragmented”, he said it was emerging as one of the key drivers of economic activity and will constitute a “major industry sector” in the future.