UAE Secures Leading Position In Global Emerging Markets Logistics Index: New Report

The UAE is heralded for creating an optimal business environment, outshining nearly all other emerging economies in terms of logistics opportunities and digital preparedness. This acclaim comes from the 2025 Agility Emerging Markets Logistics Index, which also appreciates the UAE's strides in enhancing its overall competitiveness.

This improvement is attributed to its strengths in both domestic and international logistics, conducive business climate, and advanced digital readiness. These elements are crucial for logistics providers, freight forwarders, air and ocean carriers, distributors, and investors alike.

In its 16th year, the Index, which evaluates 50 countries, acknowledges the UAE's efforts in broadening the reach of public-private collaborations, swiftly addressing climate change, and promoting logistics and industrial activities. Additionally, it highlights the Emirates' achievements in bolstering customs operations, enhancing air and ocean connectivity, reducing carbon emissions, and fostering startups alongside digital skill development.

Global Rankings and Geopolitical Challenges

The 2025 Index ranks the UAE third, only trailing behind China and India, which benefit from their large market sizes in the 50-country comparison. Despite this, the UAE is steadily narrowing the gap with the top-ranking countries, showcasing the positive impact of its investment strategies. This progress underscores the Emirates' commitment to improving its logistics and digital infrastructure to compete globally.

This year's Index also incorporates insights from a survey of 567 logistics industry professionals, revealing significant adjustments in supply chain management in response to inflation, potential trade tariffs, and the threat of a global economic downturn. Over 62% of respondents have restructured their supply chains to mitigate these risks.

The logistics sector is bracing for increased costs and potential trade conflicts, spurred by anticipated U.S. tariff hikes and a surge in exports from China. This situation has prompted a cautious approach among shippers, carriers, and forwarders, as highlighted by Agility Vice Chairman Tarek Sultan.

He notes, "There is wariness and uncertainty among shippers, carriers, forwarders and others when it comes to the geopolitical factors that drive up costs, affect trade volumes, and alter supply chains." Sultan further explains, "Companies doing business internationally continue to shift production as they re-evaluate investment plans and search for durable paths to growth."

Insights into Gulf Economies and Emerging Markets

The Index delves deep into the UAE and its Gulf neighbors, identifying them as budding global trade hubs. These countries have made substantial investments in infrastructure, artificial intelligence, energy transition, and workforce development, becoming pillars of stability and resilience despite growing global supply chain risks.

At the top of the 50-country rankings, stability prevails with countries like China, India, the UAE, and Saudi Arabia leading the way. However, there is notable movement further down the list, with Colombia making significant leaps and countries like Nigeria and Bangladesh experiencing drops in their rankings.

The Gulf nations, particularly the UAE, Saudi Arabia, and Qatar, are recognized for their favorable business conditions. In terms of digital readiness, the UAE, alongside China and Malaysia, ranks at the forefront. When it comes to logistics opportunities, both international and domestic, the leading nations include China, India, and the UAE, showcasing their pivotal role in the logistics sector.

The Index survey sheds light on several key concerns within the logistics industry. A significant portion of respondents anticipates a global recession, while a vast majority recognizes the impact of tariffs and trade protectionism on supply chains. Concerning emerging markets, a majority view risks as increasing.

In particular, many are considering moving production out of China due to trade tensions, labour costs, and regulatory challenges. Interestingly, despite these concerns, there's a notable interest in investing in Africa, with a focus on achieving net-zero goals.

Country rankings reveal the UAE's prominent position in the Middle East and North Africa, leading in business climate and digital readiness. The rankings also cover a wide range of regions, including Sub-Saharan Africa, Asia, Latin America, and Europe, providing a comprehensive overview of the logistics landscape.

Transport Intelligence (Ti), logistics analysis firm, has been compiling the Index since 2009. John Manners-Bell, Ti's Chief Executive, commends the resilience of Gulf economies amid global economic challenges. He credits their diversification and investment in infrastructure for laying a solid foundation for future growth, emphasising the region's potential as a linkage between emerging superpowers and the West.