UAE’s Dh76.78 bn distribution and logistics to grow at 7.9% – Blue Ocean Global reports
The total value of the UAE’s Logistics and Distribution sectors have grown to Dh76.78 billion in 2017 and represent about 5.4 per cent of the Dh1.42 trillion economy, according to the Annual Economic Report 2018, published by the UAE Ministry of Economy.
These two sectors are growing at 7.9 percent per annum. They are expected to drive the growth of the UAE economy till 2023, according to another report by Dubai Chamber of Commerce and Industry.
“Real GDP of the UAE’s non-oil sector is projected grow at an average rate of 4.1 per cent between 2019 and 2023, compared to 2.8 per cent growth recorded in the 2014-2018 period. Momentum behind the UAE’s GDP growth over the next 5 years will likely be led by the country’s transport and logistics sector which is set to record GDP growth of 7.9 per cent,” Dubai Chamber said in its report.
The growth in the UAE’s Distribution and Logistics sectors will be driven by online sale and e-commerce sector, a top industry official says.
“More and more consumers are currently shifting towards online purchase – due to wider choice, price competitiveness and the convenience of home delivery. As a result, the Distribution and Logistics business is also moving towards the digital space,” Shahzad Ahmed, Chairman and Chief Executive Officer of Blue Ocean Global Group, says.
“Over the last few years, we have seen our online distribution jump many folds and currently represent about 20 percent overall distribution business. This growth is phenomenal and will change the logistics, distribution, wholesale and retail businesses.”
Despite challenging economic conditions in different parts of the world, the Blue Ocean Global Group companies are penetrating deeper into the market with international brands and helping them to grow in the UAE as well as across 40 countries.
Blue Ocean Global with a network of about 250 resellers and 300 retailers has recently been appointed by NEC Corporation as its Master Distributor for SMB communications solutions in the UAE.