Freight Forwarding to and from the Middle East and contract logistics are welcoming high growth over the next few years.
While this market for Freight Forwarding not as busy as the Asia Pacific Region, Europe and North America when it comes to global growth, the two regions are expected to be approximately $9 billion and just over $3 billion a year, by 2016.
The areas are some of the key trends highlighted in two recent reports by an independent research company. They also say the strength of the Middle East Freight Forwarding logistics sector is due to more than just strong oil growth.
UAE and Dubai have become a major international trade hub with the Middle East having a share of the total Freight Forwarding market which had approximately 5% back in 2012 – including 4% of the air freight and 6% of the sea freight business – which is predicted to stay steady at this level until 2016.
The expansion at Jebel Ali in the United Arab Emirates and Oman’s port of Salalah attracting Freight Forwarders as figures confirm, also along with Dubai (World Central) are due to the final completion of the Ports. Growth with this new infrastructure has continued to rise by approximately 6.8% in 2012 from $5.7 billion to around $6.
The continuing development of this area of the globe will be a prime area in the Freight Forwarding industry to nurture and grow even with the continuing unrest in the region.
Development in this area will thrive and not just in the familiar business sectors such as petroleum and gas, but other areas of industry, thereby diversifying away from the oil and gas industries.
Freight Forwarding has increased in moving various products such as generators, engines and products manufactured in cement plants to name a few.
Also there is a considerable increase in project work, this includes water treatment facilities, cement factories, and power stations.