Insights into core areas of transport and logistics
11 leading voices in the Middle East region
5 key themes for 2023
TLME began operations in 2017 and has built itself up as one of the leading and most influential transport and logistics brands in the Middle East region. In today’s globalised world transport of goods and related logistics operations have become more important than ever before in order to facilitate global trade. Transport & Logistics Middle East (TLME) is a unique initiative by the Cargo Business Management (CBM) Group to bring together service providers, product suppliers and end users across the spectrum of the transport industry in the Middle East and the rest of the world. It aims to provide best-in-class “last mile” delivery of online services and information along with print products to everybody involved in the transport of goods.
With its strategic alliances and partnerships, Transport & Logistics ME is the region’s first print magazine and online portal that engages buyers and sellers in the transport industry on a 24/7/365 platform. The latest industry news along with accurate company, product or service information is made easily and attractively available at your fingertips using your computer or mobile phone.
TLME has also built a portfolio of conferences and events, often inviting the VIPs, thought leaders, and key industry figures to conjoin in Dubai for events that shapes the future of the industry.
Please get in touch by calling or emailing as below: Level 29, Marina Plaza, Dubai, UAE, PO Box 112229
Switchboard: +971 4 559 5631
Email: info@cbmmediagroup.com
FROM THE FOUNDER & CEO
What a year we have ahead of us here in the Middle East! With COP28 on the horizon and a host of mega-projects in the pipeline, the Middle East is really coming into its own as a region, being a legitimate global leader in innovation and dynamism. This feels very much like the region fulfilling the potential it has shown over the past few decades, which is why we themed our TLME Conference on ‘Inspiration’.
Inspiration garners the essence of what the Middle East is now tasked with; the region and major players herein must be visionary, brave, pioneering and driven in order to bring about a new tomorrow not just for the region itself, but also for the world. This is what the future of the Middle East is now, gone are the days of simple oil wealth and oilcentric economies, a new chapter that champions
innovation, sustainability, and safe and stable cities.
Of course, transport and logistics is at the centre of this. The region has always benefited from its strategic position between east and west, yet with several of the world’s leading ports, airports, logistical developments, and airlines, it is fast becoming a major hub in its own right. This edition charts that journey and looks into how key players in our sector are driving this change.
We start, as always, with a view from Dubai. Despite having an international team, our HQ has always been Dubai, it’s a place that inspired TLME into formation after all!
Because of this, we’re very passionate about the developments here and see the core industries in the region as symbiotic elements of one whole. This is why we offer this overview; it gives us a contextual understanding of the world we’re living in, the future awaiting us, and
how it’s all going to shape the future supply chain.
As well as the aforementioned, our team offer insights into all the key sectors as per usual, giving unrivalled deep dives into how each arena is growing and what challenges it faces. We also bring forward 10 key voices in our region to see how they’re inspiring change, and finally, we have a look at the key themes that are defining professional life and the health of transport and logistics in 2023. Finally, let me wish you a very happy 2023 and I hope you enjoy this edition.
Sam Khan, CEO, TLMEEDITORIAL info@cbmmediagroup.com
Editor Baibhav Mishra
Head of Editorial Richard Joy
Chairman Joe Beydoun
Head of Digital Juzer Karbalai juzer@cbmmediagroup.com
COMMERCIAL
Publisher & CEO
Sam Khan sam.khan@cbmmediagroup.com
All material is strictly copyright and rights are reserved. Reproduction in whole or in part without written permission from the publishers is prohibited. CBM Mediagroup does not accept responsibility for omissions or errors.
27th Floor, Marina Plaza
Dubai UAE
Total Length: 40 ft
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S P A C E - C R E A T I N G
S P A C E - C R E A T I N G
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C A R B O N E M I S S I O N R E D U C T I O N
C A R B O N E M I S S I O N R E D U C T I O N
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TLME serves the whole of the Middle East from its HQ in Dubai, and we’ve long felt the developments in this city are key to developments in the sector, so this piece offers an insight into the latest from the Emirate.
As has become the tradition in TLME print (and now digital) publications, we begin with an insight into Dubai itself. This isn’t simply for the glitz and glamour, nor because the TLME offices are headquartered here, but because Dubai acts as an exemplar for the region as a whole.
Dubai was the first major Middle Eastern city to ‘go global’, moving from a relatively unknown desert strip in the 90s to a major global city in record time, and having now cemented its place on the top table, it’s looking to go one step further.
Of course, this has implications for the UAE and the Middle East, and arguably now even the world. Why?
Because Dubai is now a global tourist hotspot, a highly strategic location in the movement of goods and people, as well as an increasingly important political player. To add the cherry on top, Dubai is also hosting the Conference of the Parties (COP) 28 in November/December 2023, meaning hot on the heels of Expo 2020, the world’s leading figures will descend on Dubai once more to discuss climate action for the new age.
Before we look into the opportunities and challenges COP28 promises for the region, let’s first set the table in order to understand the political, economic, and cultural landscape Dubai (and the supply chain) finds itself in today.
The major news of 2023 that so much of Dubai’s future centres on is the US$8.7 trillion economic plan to boost trade, investment in the region and Dubai’s already significant global hub status. Sheikh Mohammed recently tweeted that Dubai aims to “double the size of its economy in the next decade” and become one of the “top 3 economic cities around the world”.
Quite ambitious plans then to put it mildly. Yet,
ambition and Dubai go hand-in-hand as the Emirate has historically strived to transform Dubai into a leading light of the modern world, heavily in-step with cutting-edge technology, business, and lifestyles. This is perhaps why, with some controversy in traditional corners of the region, the UAE recently changed the Islamic weekend of Friday Saturday, to the Western weekend of Saturday-Sunday, which has been replicated by most of the world. Such moves are emblematic of the thinking in the region, global rather than regional, aligned rather than out-of-sync.
It goes without saying that Dubai’s massive fiscal injection isn’t haphazard either, seeming to be meticulously planned in terms of specifics. Reportedly we are to see 100 “future transformational projects” included in a ten-year economic roadmap. These transformational projects include boosting foreign trade to 25.6 trillion dirhams from 14.2 trillion dirhams in the last decade, nearly doubling annual foreign direct investment to 60 billion dirhams yearly and increasing government spending from 512 billion dirhams in the last decade to 700 billion in the next.
The plan also aims to bring private sector investments up from 790 billion dirhams in the last decade to 1 trillion in the next and pledged 100 billion dirhams in annual contributions to the economy from digital transformation projects.
With this announcement, things are looking rather auspicious for Dubai and the broader region. At present,
much of the world, especially the Western world, is struggling under the weight of high costs of living, challenging geopolitical issues, recessions, and even identity crises. Meanwhile, Dubai, and the region looks set to flourish.
Say it quietly, but we may be witnessing a reshaping of the global order, with declining American influence, as well as a stagnation of European markets, and with a resurgent China and an ambitious and driven Middle East, we could be on the cusp of a new world.
Tourism, Reality, Supply Chain
Dubai's tourism sector, very much a key driver of its modern economy, has rebounding strongly after the Covid-19 pandemic. According to Emirates NBD Bank, 3.1 million visitors landed in the emirate over January and February, as Dubai is fast becoming a pre-eminent getaway for European and Russian visitors looking for some revitalising sunshine during the winter months while remaining a highly popular destination for Indian visitors.
The figures are obviously inflated because of the pandemic aftereffects and ongoing lockdowns in 2022, but January 2023's visitor numbers were up 50% year on-year, although it should be added that these figures are still 9% below pre-pandemic levels. Although another caveat to this would be that in February Dubai welcomed 1.63 million visitors, which is actually up 7% on pre-pandemic levels, according to official figures.
The rise in arrival numbers also proved helpful for Dubai hotels to improve their average occupancy rates, which climbed to 84.4% in January and February, which was 0.2% higher than in 2019.
Meanwhile, the Dubai real estate market recorded 433 sales transactions worth AED820.06 million, in addition to 98 mortgage deals of AED419.64 million, and 13 gift deals amounting to AED55.19 million, data released recently by Dubai's Land Department (DLD) showed. The sales included 397 villas and apartments worth AED688.48 million, and 36 land plots worth AED131.58 million. The mortgages included 77 villas and apartments worth AED226.77 million and 21 land plots valued at AED192.87 million, bringing the total realty transactions of today to over AED1.2 billion.
Now, much more will be written on the supply chain in the region within this publication, yet to offer a brief insight, inflation and geopolitical tensions are set to dominate concerns for the regional (and global) supply chain over the next five years, that is according to a DP World study released in April 2023.
In the study, DP World surveyed dozens of freight forwarders in October 2022, in order to get a clear picture
of the industry. That picture is of an industry in turbulence, with climate change and access to talent weighing heavily on business resilience, while the ability to create seamless supply chains remains a challenging issue across the board. In the study, 63% of respondents said “inflation” was a main concern, while 56% cited geopolitical tensions as another major cause of concern, presumably referring to the stand-off in Ukraine between the US, EU, and Russia, as well as tensions surrounding Taiwan with the US & China.
The World Climate Summit – The Investment COP 2023 returns on 3-4 December alongside COP28 in Dubai, promising a revolution in climate action. As stated prior in this piece, it’s another scalp for the region to attract a global set of decision-makers, thereby solidifying Dubai’s place at the top table.The World Climate Summit has stated that it aims “to share best practices and innovations across sectors that are essential to decarbonisation efforts in the focus areas of energy, transport, buildings, industry, finance, and nature”.
Further, the event links up to the ongoing ‘Global Stocktake’, with a focus on how non-government stakeholders can achieve transition pathways to deliver on climate action. The Summit further serves as a platform for frontrunning pledges, commitments and action plans aligned with the objectives of the Paris Agreement.
In essence, we have a very exciting decade ahead of us in Dubai and the Middle East region. Now is not a time for holding back, but being bold, brave, and creative as a new tomorrow is being created in real-time.
The major news of 2023 that so much of Dubai’s future centres on is the US$8.7 trillion economic plan to boost trade, investment in the region and Dubai’s already significant global hub status. Sheikh Mohammed recently tweeted that Dubai aims to “double the size of its economy in the next decade” and become one of the “top 3 economic cities around the
To the outsider, the supply chain can seem a bland, even mundane element of the modern world. It certainly doesn’t get the fanfare of other industries such as the arts, politics, or infrastructure. Yet to the insider, that is those who work on and within it, the supply chain comes alive both in its significance and its raw power.
We saw this on display during the Covid-19 pandemic, while the majority of the globe’s population merely thinks about the endpoint that they receive a product – being a shop, an e-store, or local market, suddenly, when the world went into lockdown the supply chain became front and centre of global news.
Why? Because when the supply chain buckles, everything shakes. We can understand this via the simple shock of seeing empty shelves in a supermarket, or via the vast abstract enigma of the global economy. When trade stops flowing, markets get spooked, meaning investment and borrowing ceases, meaning value spirals. When we understand the supply chain through this lens, rather than as a distant containership we see on the horizon at the coast, we understand it for what it really is – a plethora of vital veins and arteries in the vast network of human civilisation.
With this in mind, this piece looks at the big global issues affecting our times, which is so important because each will have a major impact on the supply chain, and if we can understand the impending challenges our world faces, the more we’ll be prepared to handle them when they arise.
Recent years have seen a focus on climate change massively ramp up, with a series of meetings of global leaders and states in which new regulations have been drawn up. The next time we’ll get a very clear mandate for the future will be at COP28, which is being held here in Dubai. One of the key considerations for this will be the return of the implementation of the UN’s Sustainable Development Goals (SDGs).
The UN’s SDGs were a pre-pandemic measure of 17 areas in which sustainable working methods and strategies could be fostered, yet with the pandemic, they were blown off course. COP28 is likely to see the resurgence of these goals and a legal framework to ensure they’re implemented. Another key area of environmental
to watch in 2023
development is the ongoing global stocktake, in which nations around the world can monitor their progress and build an idea of what demands will be needed in the future. COP27 in 2022 (held in Egypt) also saw the development of a “loss and damage” facility intended to provide support to countries already experiencing the consequences of climate change. This, combined with the launch of the Secretary-General’s Early Warnings for All initiative, represented important steps in 2022 to address the harms of climate change, which are disproportionately felt in developing countries.
2022 headlines have been dominated by the Russian invasion of Ukraine and the ramifications this has caused. The first and most obvious is the huge
turbulence in the energy trade given Russia was a huge provider of gas to Europe. Given the West has collectively condemned Russia’s invasion, this has led to something of a stalemate which is in turn hiking prices in certain regions (while reducing them in others), causing great uncertainty in markets, and ultimately leading to a global recession.
While the human cost has been terrible, and the economic effects will have and are having a big impact on global trade flows, perhaps the most impactful, and least explored, angle on the current conflict is whether we’re experiencing a shift in the global power balance. With Russia’s invasion of Ukraine, and China and the US sparring over Taiwan, one could be
The point here is that the restructuring of the global power balance could be on the cards, and it’s worth closely monitoring to understand new ways of working, new markets to explore and new mandates that will fall upon nation-states.”
forgiven for noticing how China, the world’s only other superpower along with the US, and Russia, a historic superpower with a vision to reestablish itself at the top table of global politics, feel emboldened enough to act in a more forthright manner.
For many decades now, the US has been so dominant that it’s effectively been able to take the role of a global
policeman (much to the chagrin of many countries), yet Russia has hit back at the US and its Western allies for its “hypocrisy” in its condemnation of the Ukrainian invasion, referencing the invasions of Iraq and Afghanistan. This all points towards a shift in the power balance that could be on the cards.
In fact, President Putin recently said to Chinese Premier Xi Jinping “change
is coming” during a filmed warm goodbye after a recent meeting with the leaders. What that change looks like is beyond the scope of this article, as is whether US power will lessen to such a level meaningful change will even occur; these are the questions we’ll see unfold. The point here is that the restructuring of the global power balance could be on the cards, and it’s worth closely monitoring to understand new ways of working, new markets to explore and new mandates that will fall upon nation-states.
As the world becomes increasingly globalised, with peoples and cultures intermingling, the importance of inclusion has grown in prominence to ensure equity in operational systems. Yet another, more political dimension of this, is integration.
Integration aims to ensure a dialogue across the global community, meaning peoples, countries and nation-states are all heard and respected. This will be a key focus of the UN’s Summit of the Future in 2024. There, nations will begin negotiating key elements as proposed in the UN Secretary-General’s ‘Our Common Agenda Report’, released in 2022. These include a new agenda for peace, a global digital compact, and a declaration on future generations.
A preparatory ministerial meeting at the UN General Assembly next year will offer leaders the chance to make a down payment on this ambitious set of proposals on the future of multilateralism. Beyond the UN, India plans to use its G20 presidency to focus on multilateral reform and Japan has similar plans for its G7 presidency. We should also expect to see more serious efforts to make the multilateral system more inclusive and responsive to 21st century challenges, including across the UN Security Council, World Bank, and IMF.
Making the most of the opportunity at hand in 2023 will require a clear and honest look at where the world is off track without becoming hopeless about the scale of the challenge. Without doubt, global cooperation will be tested in new ways in the year ahead, and the urgency required to meet the 2030 deadlines will be laid even more bare. As humanitarian, health, and climate crises rage on, the world’s leaders will need to choose solidarity and step up for people and planet in unprecedented ways before the clock runs out. Far too much is at stake to make any other choice.
Over the past decade or so, we’ve heard plenty in the media – both regional and global – about how the Middle East is intent on diversifying away from an oil-based economical structure to a new model. This new model is rooted around several key elements, namely, tourism, cultural leadership, sustainability, sporting events and innovation.
We have witnessed this with the grand ambitious plans in Saudi Arabia to build buildings of astounding heights, new revolutionary cityscapes and to become a global leader in social and cultural development,
not to mention sustainability. The UAE led the way on this in many ways, becoming a leading light of a new generation of global players, while Qatar too recently showed its credentials during an exciting and impressive World Cup.
Yet the core point here is that we may be on the cusp of the era when Middle Eastern nations are no longer ‘diversifying away’ from oil-based economies, but actively have already made that jump. One could argue that Saudi are perhaps still in that process with Vision 2030, yet Dubai in particular seems to have already made the transition.
A very modern measure of how this has occurred is what happens when one googles ‘Dubai’ and sees what suggestions follow. Is it ‘oil’, ‘money’ or ‘sheikhs’ that arises? No, it is actually ‘time’, ‘YouTube’, ‘technology 2023’, and ‘holidays’ that come up as the leading suggestions. This rather cursory, although still very revealing, form of research shows us what the majority of people are searching for when it comes to Dubai. You could say that’s a job well done by the Dubai government in moving the public perception of Dubai from oil towards tourism and innovation.
How the Middle East is becoming the leading light for global innovation
It is no secret that the Middle East region is now home to some of the most innovative, forward thinking cities in the world, but also to those who are up-and-coming in terms of future vision. But to begin, let’s clarify what we mean by “innovation”. In its most simple sense, innovation is about creating new solutions and experiences. It has been found time and time again that those who put innovation at the forefront of their thinking tend to outperform and overtake others who stick to the way things have always been.
In 2020, the Boston Consulting Group stated that the Middle East ranks second only to China in its level of commitment to innovation. Meanwhile, the UAE has now made it up to 31st in the Global Innovation Index, with Dubai and Abu Dhabi leading the way. In fact, Dubai has actually been named as the ‘city of the future’.
Dubai is very much on its way to becoming a ‘smart city’, meaning a city that is digitally connected, highly automated, and extremely efficient, which is why it is home to some of the most exciting technological innovations today. One example of this is Expo 2020 – an exhibition which was said to be ‘uniting the world in one place by providing a global experience dedicated to bringing people together, building bridges between communities and nations, and inspiring action and delivering real-life solutions to real-life challenges’, such events show Dubai’s ability and capacity to be a genuine global leader.
This is evidenced perfectly in the UAE’s ambitious plan to realise Hyperloop, a super-speed new transport system that has the power to revolutionise both cargo and passenger transport. Currently, under development between Dubai and Abu Dhabi, Hyperloop is a ‘sealed tube or system of tubes with low air pressure through which a pod may travel largely free of friction or resistance’. The end
product is expected to be ready by the end of the decade.
With regard to telecommunications, Etisalat in the United Arab Emirates is the fastest mobile network in the world. It offered average download speeds of 193.88 Mbps and average upload speeds of 29.87 Mbps during Q1-Q2 2021, showing how the UAE is at the forefront of connectivity – a vital metric for a smart city.
With regards to AI, IBM believes AI could contribute more than US$300 billion by 2031 to Middle East GDP. In fact, the UAE appointed its first minister of AI after estimating this technology might add $182 billion to the economy by 2035.
The Middle East region’s logistics industry has garnered a good reputation in the last decade or so, generally performing well despite many challenges such as the global pandemic, turbulent global markets and a disjointed global strategy surrounding trade. Logistics has become core to several GCC countries’ future development plans, with the region’s logistics market proving a fundamental pillar of regional economies.
In 2015, logistics accounted for 13% of Saudi Arabia’s GDP, and 10% of the UAE’s – figures that will have undoubtedly risen in the interim thanks to both countries’ ambitious diversification and development plans. And the region’s growing capabilities have given it international recognition. According to the World Bank’s latest Logistics Performance Index, the UAE ranked 13th out of 160 countries, outdoing the likes of Canada, France, Finland, Denmark, and Australia. Against its emerging market peers, the UAE ranks first. Similarly, a January report by Kuwaiti logistics firm Agility placed the UAE as the third best logistics centre among 50 emerging markets, behind China and India. Bahrain was ranked fifth, with Oman in sixth and Saudi Arabia in seventh position. But while an external view suggests plain sailing, there are continual challenges, changes and developments that regional logistics firms must contend with and adapt to in order to stay at the front of the pack. A major contributor to this is technology, which has and is changing the logistics industry at an accelerated rate. From artificial intelligence (AI) to blockchain, and big data to robotics, logistics players are on a constant mission to understand and implement new and developing technologies in the most effective and efficient ways possible.
... We may be on the cusp of the era when Middle Eastern nations are no longer ‘diversifying away’ from oil-based economies, but actively have already made that jump. One could argue that Saudi are perhaps still in that process with Vision 2030, yet Dubai in particular seems to have already made the transition.”
2023 has seen a stuttering start with worldwide trade struggling to find its flow. With the multivariate forces of geopolitical instability – most notably the Russian invasion of Ukraine, which has divided key players on the global stage and sent energy costs spiralling – new sustainability demands, and disagreements on strategies, the present state of play is a turbulent picture.
In this piece, we will break down the key issues affecting the container shipping sector, highlight the key themes for the present, and end by offering an outlook to the future, which will hopefully be smoother sailing than at present.
Another key reason for the present instability revolves around how manufacturers and distributors are battling to reduce excess inventories
while simultaneously dealing with rising interest rates. Naturally, the hike in interest rates is causing trepidation buyers. Early data for 2023 shows us that container flows have fallen in Jan/Feb year-on-year, showing the inventoryliquidation cycle remains an issue.
As ever, it’s helpful to read the market by looking into spot rates, and if we look at the cost of moving a box from China to the US (West Coast) we can see something
quite shocking. In 2022, fees were around US$16,000, in 2023, they’re closer to $1,000 for a forty-foot equivalent unit, according to the Freightos Baltic Exchange index.
The biggest influence on global trade flows, arguably even global politics, at present comes in the form of Vladimir Putin’s invasion of Ukraine. Commentators in the field of geopolitics
and political strategy seem to have formed something of a consensus that President Putin expected a swift victory in Ukraine, after which, a new normal could be created in the region.
However, what Putin has found is a stubborn resistance, which has led to a significant loss of life, as well as major support for Ukraine stemming from the West. Given Russia provides (or did provide) masses of energy to Europe, we’ve seen energy prices spiralling out of control, thereby rocking global markets, and leading us headlong into a global recession throughout 2023.
Despite the dark impending clouds, this may not be as long-term, or damaging an issue as one may think. In its outlook for 2023, Lloyd’s List stated that: [While it] may sound callous… if the past few years have proved anything, it is that those glitches in the global system routinely throw up lucrative opportunities for maritime businesses.”
Continuing: “Parking the prospects for 2023 for just a moment, it is worth reminding ourselves that the shipping industry has once again earned a record amount of money in 2022.
“Earnings may not have seen the historic peaks, but they have been consistently high. Granted, market conditions are generally expected to deteriorate in 2023, but a low orderbook with a short runway supports a mediumterm outlook that is — in historical terms — not too bad.”
The International Maritime Organization (IMO) has recently announced its ‘World Maritime Theme’ for 2023 as 'MARPOL at 50 – Our commitment goes on'. According to the IMO, “the theme reflects the organization's long history of protecting the environment from the impact of shipping via a robust regulatory framework and emphasizes its ongoing commitment to this important work. The theme 'MARPOL at 50 – Our commitment goes on' also spotlights the International Convention for the Prevention of Pollution from Ships (MARPOL), which covers prevention of pollution of the marine environment by ships from operational or accidental causes.”
With global warming taking centrestage in global issues, with clear and obvious ramifications for all, it’s no surprise that the IMO is furthering its aims with regard to sustainability. The IMO has also already released a new set of rules called ‘IMO 2023’. IMO 2023 aims to reduce shipping carbon emissions by 40% by 2030, and 70% by 2050, when compared to 2008 levels. The IMO 2023 directive took effect on January 1, 2023, meaning shipping lines have significant work to do to stay in line with the directive.
A blend of new challenges as well as obstacles as old as the supply chain itself is causing retailers to reassess their current shipping strategies. It may be something of a worn out – and arguably incorrect – cliché, but in a ‘conservative’ industry like container shipping, new blood has entered the sector with ambitious new aims.
Hence, instead of relying on tried and tested methods, key players and shipping businesses have become warmer to the notion of adaptable strategies that meet challenges in real time over longer-term strategies that are far less agile. Maggie Barnet, COO of e-commerce fulfilment company ShipHero recently spoke about how the key to successfully manage challenges is to remain flexible.
She said: “The positive thing about the last two years is that companies have gotten really good at predicting supply chain disruptions. Brands don’t need to reinvent their shipping strategies, but they may need to adjust accordingly. Staying flexible is key to surviving the ups and downs of the pandemic.
She added: “Companies should be able to scale operations and resources depending on consumer demand and product shortages. 2023 will be all about elastic logistics. Companies should also consider investing in AI and cloud technologies, as these are the best ways to predict consumer demand and have total visibility into the supply chain.”
On the back of the record profits in 2021 and 2022 due to spiralling freight rates, the extent of liner profitability can be gauged from the fact that various estimates have put the aggregate industry profits for the last two years as being more than the combined profits over the past two decades. The super profits have left carriers flush with funds, even after placing orders for new vessels and equipment. Carriers then are deploying the surplus profits to boost their resiliency and create alternate revenue streams intended to help them sustain when the container market eventually stabilises.
With this in mind, carriers are moving away from a sole focus on container shipping and starting to look into logistics and freight forwarding, and even air and rail transport, as well as the more predictable venture into the port side of operations. These additional investments in ports, terminals, air capacity, train operators and logistics assets result from a conscious strategy to pivot away from a cyclical industry and develop a more robust organisation operating across the entire supply chain.
While the above is an understandable aim, there may be monopolisation issues to contend with should one of the major carriers be highly successful in forming a complete, in-house supply chain. Still, that aside, it would be interesting for the industry to see how smoothly a chain can function if all elements are working together.
The container shipping sector has enjoyed an unprecedented boom during the pandemic but 2023 will see a difficult combination of sluggish demand and sharply rising fleet growth. This is contextualised by an uncertain geopolitical landscape, sustainability concerns and demands, as well as new strategies that could change how we approach the shipping sector.
After the turbulence of recent years, the air cargo industry has been set on stabilising itself towards a new normal. However, as tends to be the case in life, such a task is never simple, with a raft of unknowns challenging the sector, alongside the more consistent challenges the industry usually faces.
Before we cover these, a quick update on the present market. The International Air Transport Association (IATA) has recently released its first data for 2023, finding that global air cargo markets are showing that air cargo demand declined as economic headwinds persist.
Global demand, measured in cargo tonne-kilometres (CTKs*), fell 14.9% compared to January 2022 (-16.2% for international operations). Capacity (measured in available cargo tonnekilometres, ACTK) was up 3.9% compared to January 2022. This was the first yearon-year growth in capacity since October 2022.
International cargo capacity increased by 1.4% compared to January 2022. The uptick in ACTKs reflects the strong recovery of belly capacity in passenger airline markets offsetting a decline in international capacity offered by dedicated freighters. Several factors in the operating environment should be noted: The global new export orders component of the manufacturing PMI, a leading indicator of cargo demand, increased in January for the first time since October 2022. For major economies, new export orders are growing, and in China and the US, PMI levels are close to the critical 50-mark indicating that demand for manufactured goods from the world’s two largest economies is stabilizing.
Global goods trade decreased by 3.0% in December, this was the second monthly decline in a row. The Consumer Price Index for G7 countries decreased from 7.4% in November to 6.7% in January. Inflation in producer (input) prices reduced by 2.2 percentage points to 9.6% in December.
Willie Walsh, IATA’s Director General, gave his views on this: “With January cargo demand down 14.9% and capacity up 3.9%, 2023 began under some challenging business conditions. That was accompanied by persistent uncertainties, including war in Ukraine, inflation, and labour shortages. But there is solid ground for some cautious optimism about air cargo. Yields remain higher than pre-pandemic. And China’s much faster-than-expected shift from its zero COVID policy is stabilizing production conditions in air cargo’s largest source market. That will give
a much-needed demand boost as companies increase their engagement with China.”
Air to Ocean?
Murmurings in the sector are pointing towards 2023 being the year when a significant volume of air cargo will be diverted to ocean freight. Such a move follows on from the global pandemic, during which we witnessed a huge increase in air freight demand primarily due to the change in purchasing trends. Another key element was the uncertainty of the ocean freight sector, which at the time was bogged down in supply issues, delays, and bottlenecks. Hence, shippers who would otherwise have opted for sea freight shipment were forced to move their shipment via air freight because of the equipment shortage, port congestion, blank sailings, and other problems in the sea freight sector.
However, now the pandemic is all but over, and the global economy is kicking back into gear, the ocean freight sector has returned to normal. In simple terms, this means increased schedule reliability, more capacity, and, of course, lower freight rates. This change is what is driving many freight forwarders to shift to sea freight shipments to save expenses.
Sustainability is another key factor here too. With intense scrutiny on businesses to not just espouse a ‘green’ philosophy, but to actively show they are making sustainable choices while building a climate conscious operational culture, forwarders are eager to make the switch from air freight to sea freight, with the latter being far more sustainable.
Finally, the increase in belly capacity due to the easing of travel restrictions will be further supplemented by the arrival of new freight orders placed
by the carriers during the peak of the pandemic. Therefore, air freight capacity will continue to increase in the coming months leading this sector to join the ocean freight industry in terms of overcapacity.
The air cargo sector has long been a leader when it comes to the trend of digitization, and this doesn’t show any sign of abating in 2023. Carriers and airports around the world have increasingly been looking into AI developments that can synergise with other technological evolutions in the sector. Such evolutions include realtime data availability and increased transparency in the shipping processes. What this ultimately offers is a change in working methods and operational strategy as the industry moves from a manual model to a 24/7 real-time, largely automated system.
This change is also being driven at a time when customers have gotten used to getting immediate access to data on their smartphones, meaning the air cargo sector will soon give the customers the ability to track and locate their shipments in real-time. Additionally, we are also likely to see an increase in the development of online portals for quoting, tracking, and shipment booking.
Another trend that will dominate this industry in 2023 is the increased focus on sustainability. In this context, the use of sustainable aviation fuel (SAF) will continue to play a major role. SAF could provide a massive opportunity for the air cargo industry to take a stride toward increased sustainability.
Sustainable aviation fuels can lower the net carbon emission by around 80% as compared to traditional jet fuel. Additionally, scientists are doing new research into SAF that will even be capable of absorbing more carbon
dioxide than they release. Moreover, carriers, air freight forwarders, and airport authorities will continue to take environment-friendly steps by increasingly depending on solar power. The focus on digitization and sustainability will in turn benefit the entire value chain including, shipping companies, freight forwarders, investors, exporters, and consumers.
In this regard, DHL Express has recently announced the launch of a new service that will allow customers in Hong Kong to reduce associated with shipments through the use of SAF. It’s ‘GoGreen Plus’ service is available through the MyDHL+ online portal and is made possible through the express firm’s SAF partnership with bp and Neste.
The service was launched elsewhere earlier this year and is already available to customers in the UAE, the UK, Italy, Denmark, Sweden, Canada, Australia, New Zealand, and South Africa. It will be rolled out globally over the rest of 2023.
Ng Chee Choong, senior vice president and managing director of DHL Express Hong Kong and Macau, said: “In line with our global mission of ‘Connecting People, Improving Lives’, we continue demonstrating our commitment to Hong Kong by helping the city reduce its carbon emissions through investments in green fleet and facilities.
“We look forward to further redefining logistics while setting our sights on our net-zero-emissions target via the industry’s most comprehensive portfolio of green logistics solutions.” The new service is part of the company’s ambition to use 30% percent SAF for all air transport by 2030.
The air cargo sector has long been a leader when it comes to the trend of digitization, and this doesn’t show any sign of abating in 2023. Carriers and airports around the world have increasingly been looking into AI developments that can synergise with other technological evolutions in the sector. "
According to a new market research report by Mordor Intelligence entitled "Middle East and Africa Freight and Logistics Market(2023 – 2028),” the regional market is expected to register a CAGR of 6%. Some of the trends driving the growth of the Middle East and Africa freight and logistics market are as follows.
The Middle East in particular is projected to grow significantly, with the region witnessing significant growth annually in terms of air transport. Cargo volumes are estimated to double in most countries of the region, and at such levels, several challenges and opportunities arise.
In the Middle East, the vast number of significant airport capital expansion programs are led by demand coming from the growth of domiciled carriers. However, there is also geographic proximity to major source markets, such as the Indian subcontinent and intercontinental traffic flows and the MENA regional travel. Airports in the Gulf have led this trend, with Dubai, Abu Dhabi, Bahrain, Doha, Muscat, and Jeddah investing billions of dollars in infrastructure and focusing on improving the passenger experience.
This investment is due to the close symbiotic relationships the airports have with domiciled carriers such as Emirates Airlines, Etihad Airways, Qatar Airways, and Saudi Arabian Airlines, which enable most stakeholders in the value chain to
work together and develop an end-to-end experience, serving the industry and the respective local economies.
Meanwhile, the UAE is also wellpositioned to export to African countries due to its developed logistics industry. The UAE Trade Center offers Emirati companies a one-stop exporting solution to take their business into emerging markets in Africa. The initiative facilitates meetings for small- and midsize enterprises with potential business partners either in the UAE or in Africa. The UAE Trade Center mainly focuses on East Africa, with an office in Nairobi, Kenya, but CEO Walid Hareb Al Falahi said he is looking to connect Emirati and West African businesses, starting in Accra, Ghana, where the business is working on a 100-megawatt solar project.
E-commerce is now driving the development of the logistics industry globally, and the e-commerce industry across the Middle East is also growing rapidly due to the high levels of internet penetration and the rising GDP of many countries, including Bahrain and Saudi
Arabia.
While many of the Middle East’s imports have historically come from China, an increasing number of shoppers in the region are also buying from different markets. Across the Middle East, Amazon and eBay are used just as frequently (and sometimes more) as the local sites, such as Cobone, Souq, and Sukar. The purchasing power of the Middle Eastern region comes largely from an extremely young population. In Saudi Arabia, over 55% of the population is under 30 years, meaning young, digitalsavvy shoppers are driving smartphone use in the region to over 65% and internet penetration to over 90% in the UAE, Bahrain, and Qatar. As a result, e-commerce is growing steadily.
Other key news lies in Bahrain-based investment firm Investcorp’s continuing warehouse investments in India, betting the nation’s manufacturing ambitions and e-commerce boom will fuel demand for logistics. Warehousing currently accounts for almost 16% of the firm’s US$350 million real estate portfolio in India, and it’s planning to boost that share in the coming year, according to Ritesh Vohra, the firm’s real estate head in the nation.
He said: “Warehouses could end up being our biggest strategy in Indian real estate.” Investcorp joins a flood of international capital investing in
a sector that’s been buoyed by the government’s plan to transform India into a manufacturing hub, and a steady rise in online shopping on platforms such as Walmart’s Flipkart and Amazon.com.
The company, whose Indian real estate portfolio is currently dominated by residential property, last year deployed $55 million to back Chennai-based developer NDR Warehousing. That helped grow NDR’s stock of warehousing space to 14 million square feet from 9 million square feet. Private equity investment in Indian warehousing climbed 45 per cent to $1.9 billion in 2022 from the prior year, when funding for all other real estate classes declined amid a global economic slowdown, according to a report by international property consultant Knight Frank. That momentum is seen continuing in 2023.
Saudi Arabia has jumped up the rankings in the World Bank’s Logistics Performance Index, coming in at 38, a big jump from number 55 in the 2018 report. In the last few years, Saudi Arabia has seen its stock as a global logistics hub rise as it formulates plans for as many as 60 logistics hubs around the Kingdom, and contemplates wholesale upgrades of existing ports, as well as a number of greenfield facilities.
Identical rankings to Saudi Arabia
were achieved by India, Lithuania, Portugal, and Turkey, with identical overall LPI scores of 3.4. The rankings were topped by Singapore, with a score of 4.2, with Finland coming second, also on 4.2 and Denmark third, with 4.1. Saudi Minister of Transport and Logistics, Saleh Al-Jasser, said: “This progress came with the support of the Crown Prince and the ambitious goals of the National Strategy for Transport and Logistics Services.”
Afghanistan and Libya came bottom of the rankings, in 138-equal position, with LPI scores of 1.9.
Saudi Arabia has also seen major investments in its transport network that is now transforming life and business in the Kingdom. A recent report on the transport sector shows Saudi Arabia has more than 73,000km of roads, 13 ports, conducted more than 700,000 flights and transported 5.8 million people by rail in 2022.
The Kingdom is looking to establish itself as a leading logistics hub and is investing heavily in land, sea, and air transport. Saudi Arabia’s location at the confluence of three continents, Asia, Africa, and Europe makes it a global logistics hub. This location contributed to the Kingdom becoming a leading country in the transport and logistics sector. Saudi Arabia’s 73,000km of roads includes 3,690 bridges and 76 tunnels that fall under the responsibility of the Ministry of Transport and Logistic Services.
More recently, A. P. Moller - Maersk, a global integrator of logistics, and Saudi Ports Authority ‘Mawani’ have broken ground for Saudi Arabia’s largest Integrated Logistics Park at Jeddah Islamic Port. Present at the groundbreaking ceremony were His Excellency Mr Omar Bin Talal Hariri President, Saudi Ports Authority (Mawani), Her Excellency Ambassador Liselotte Plesner, Danish Ambassador to Saudi Arabia, Mr Abdullah Al Zamil, CEO of Zamil Construction, and Mr Mohammad Shihab, Managing Director, Maersk Saudi Arabia, along with Maersk’s valued customers, and partners. The greenfield project spread over an area of 225,000 sq. m. will be the first of its kind at the Jeddah Islamic Port offering an array of solutions with an aim to connect and simplify the supply chains of Maersk’s customers in the Kingdom. The 346 Mn USD- (1.3 Bn Saudi Riyal) investment project will not only create bespoke logistics solutions but also focus heavily on decarbonising logistics with the use of renewable energy to power the entire facility. The project is expected to create more than 2,500 direct and indirect jobs in Saudi Arabia.
Kuwait-based logistics real estate firm Agility has announced plans for a series of data centre campuses across the Middle East and North Africa. Agility Logistics Parks (ALP), which develops industrial and logistics real estate in the Middle East, Africa, and South Asia, this week announced the launch of four ‘tailored, master-planned data centre campus sites’ in Saudi Arabia, Kuwait, Egypt, and Ghana.
The company said the sites are being readied at ALP’s existing parks with power allocation, fibre connectivity, and building permits. The first set of campuses are within ALP parks in Riyadh, Saudi Arabia; Kuwait; Cairo, Egypt; and Accra-Tema, Ghana. The company said it expects to add sites in other markets in the future including Nairobi, Kenya; Casablanca, Morocco; and Lagos, Nigeria. Ronald Philip, senior director at ALP, said that the company was “uniquely poised with a portfolio of ideal sites” across the Middle East and Africa.
The Middle East continues to play a leading global role in furthering advancements in sustainability and clean technologies, and this piece will look into the actions several key M.E. states are taking to bring about a greener and cleaner tomorrow.
The UAE Leads the Way
2023 is a massive year for sustainability in the Middle East, not only is the annual Conference of the Parties (COP) holding its 28th iteration in Dubai, but His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE and Ruler of Abu Dhabi, has announced that 2023 will be the “Year of Sustainability”.
According to the UAE government, the Year of Sustainability will include several initiatives, activities and events that draw upon the UAE's “deep-rooted values of sustainability and the legacy of its founder, the late Sheikh Zayed bin Sultan Al Nahyan”. It will also focus on environmental sustainability by inspiring collective action through a nationwide commitment towards sustainable practices, in line with the UAE’s national strategy to “bring together everyone who calls the UAE home to
work towards a prosperous future”.
The year also aims to showcase the UAE’s commitment towards fostering a global collaboration in seeking innovative solutions to challenges, such as energy, climate change and other pressing issues related to sustainability. The yearlong initiatives are being overseen by H.H. Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of the Presidential Court; and H.H. Sheikha Mariam bint Mohamed bin Zayed Al Nahyan.
President His Highness Sheikh Mohamed bin Zayed said, “Sustainability has been a fundamental principle in the United Arab Emirates since its unification. The nation continues to serve as an exceptional model for environmental conservation and resource management. The late Sheikh Zayed was a global leader in environmental and climate action, leaving behind a legacy that we continue to follow today.”
His Highness added, "Today for Tomorrow embodies the UAE's approach and commitment to sustainability and its responsibility to protect the future. By working, making efforts, and initiating actions today, we are ensuring that we leave behind a legacy of stewardship for future generations, just as our ancestors did for us.”
His Highness also emphasised that the Year of Sustainability has particular significance as the UAE prepares to host the 28th United Nations climate change summit, Conference of Parties (COP28). He stated that the UAE is determined for COP28 to set a precedent in the collective global efforts to address climate change.
His Highness also invited community members and institutions to engage with the initiatives and activities of the Year of Sustainability and come together in collective efforts that lead the nation towards a more sustainable future.
The Year of Sustainability solidifies the UAE's commitment in addressing current challenges and promoting sustainable practices at an individual and community level. Notable examples include the "Net Zero by 2050 Strategic Initiative", which details the country's commitment to promoting environmental protection, and its efforts to create thriving communities ideal for living and working.
The announcement comes following the successful conclusion
of Abu Dhabi Sustainability Week 2023, which saw the participation of numerous state leaders and officials worldwide. This further cemented the UAE's position as a leader in promoting sustainability awareness both domestically and internationally and reinforces its commitment to tackling the challenges associated with it.
The UAE has long been a leader in promoting clean energy and building effective partnerships for the benefit of the global community. One notable partnership is the UAE-US Partnership for Accelerating Clean Energy (PACE), which will catalyse US$100 billion in financing and other support in addition to deploying 100 new gigawatts (GW) of clean energy in the US, UAE, and emerging economies around the world by 2035.
The UAE isn’t the only major Middle Eastern player making serious moves in sustainability, with Saudi Arabia too making a major commitment to climate action.
His Highness Mohammed Bin Salman, Crown Prince and Prime Minister of Saudi Arabia, has recently
Alongside further investment and a commitment to global collaboration, Saudi Arabia has also stated its intentions to see out a major energy transition, involving both land protection and afforestation. The Kingdom is focussed on a “whole-ofsociety ambition” that is activating public and private sectors and enabling citizens to achieve ambitious national targets.”
launched the Middle East Green Initiative. This strategy aims to reduce carbon emissions and plant 50 billion trees across the Middle East. In November, he said the kingdom would contribute $2.5 billion to the initiative over the next ten years and host its headquarters. Saudi Arabia had said last year it aimed to contribute 15% of the $10.4 billion required for the fund’s clean energy projects.
Yet the good work doesn’t stop there, with Saudi Arabia making commitments to green change across the board. His Highness Mohammed Bin Salman said: “We are ushering in a new green era for the region; in which we are collectively leading and reaping its fruits, in our joint belief that the effects of climate change are not limited to the natural environment only, but also to the economy and security of our nations.”
Other initiatives include, the Circular Carbon Economy (CCE) framework, which is an integrated, inclusive, and pragmatic approach to managing emissions. To date, Saudi has implemented more than 30 CCE initiatives across the energy system, enabling climate action while bolstering economic growth.
Alongside further investment and a commitment to global collaboration, Saudi Arabia has also stated its intentions to see out a major energy transition, involving both land protection and afforestation. The Kingdom is focussed on a “whole-of society ambition” that is activating public and private sectors and enabling citizens to achieve ambitious national targets.
Environmentalism in Egypt
Egypt is famed for the beauty and cultural heritage of its famous River Nile, yet one of the biggest environmental hazards facing Egypt’s biodiversity is the plastic pollution in the beloved river.
Reportedly, about 4.5 million tons of waste make its way into the Nile each year. Environmentalists and volunteers have decided to act. In keeping with Egypt’s tradition, the decision has been made to build a giant pyramid – inspired by the shape of the Giza Plateau – made entirely out of discarded plastic. Ahead of COP27 in 2022 (held in Egypt), the country rolled out several initiatives, the biggest of which was the commitment to plant 100 million trees and reduce the use of
single-use plastic bags by instituting a country-wide ban.
Another major concern for Egypt is the health of its splendid coral reefs. Home to over a thousand species of fish and around 350 coral species, the United States Agency for International Development has committed up to $15 million to scale coral reef-positive blue economic growth and conservation finance in the Egyptian Red Sea in partnership with the Global Fund for Coral Reefs during the COP 27 summit.
Oman’s sustainable city ‘Yiti’, a development by Sustainable Development Investment Company (SDIC), reaffirmed its commitment to roll out initiatives to support Oman Vision 2040 and the National Tourism Strategy by creating a green, energyefficient city, which is people-centric.
Reportedly, nearly 58 SMEs in Oman have also benefited from the job opportunities spurred by the sustainable city in the last two quarters. Among the ambitious projects in Oman is an agreement signed by Oman Oil Marketing Company (OOMCO) and Oman Aluminium Rolling Company (OARC). This agreement makes OOMCO the first fuel marketer providing biofuel in Oman and OARC the first enterprise to employ environmentally viable biodiesel contributing to a reduced carbon footprint. This is also a big step toward the achievement of the Oman 2050 Carbon Neutrality target, as biodiesel from the plant will reduce 4.3% of carbon emission, and OARC will employ B5 in its aluminium rolling operations as a quick fix to inch closer to its decarbonization goals.
Qatar’s amazing FIFA World Cup 2022 will be remembered for more reasons than the headline-grabbing wins and upsets that marked football history. The World Cup several had sustainability initiatives, including Stadium 974. The 40,000-seat stadium, crafted by Spanish architects Fenwick Iribarren Architects, is the first entirely demountable stadium in World Cup history. The stadium, constructed with repurposed shipping containers and modular steel, is a relic of sporting history and sustainability.
HIS HIGHNESS SHEIKH MOHAMED BIN
ZAYED AL NAHYAN p23
HIS HIGHNESS SHEIKH
MOHAMMED BIN RASHID AL MAKTOUM p24
MOHAMMED
HIS ROYAL HIGHNESS
BIN SALMAN AL SAUD p25
HIS HIGHNESS SHEIKH AHMED BIN
SAEED AL MAKTOUM p26
H.E. SULTAN AHMED BIN SULAYEM p27
AMADOU DIALLO p28
CAPTAIN MOHAMED AL SHAMISI p29
PAUL GRIFFITHS p30
AMIN NASSER p31
OTHMAN ALJEDA p32
AHMED BAHROZYAN p33
Popularly known by his initials as MBZ, His Highness Sheikh Mohamed bin Zayed Al Nahyan is the third President of the United Arab Emirates and the Ruler of Abu Dhabi. HH Sheikh Mohamed is the third son of Sheikh Zayed bin Sultan Al Nahyan, who was the first president of the UAE and the ruler of Abu Dhabi. In 2019, The New York Times named MBZ as the most powerful Arab ruler and one of the most powerful men on Earth. He was also named as one of the 100 Most Influential People of 2019 by Time Magazine.
His Highness Sheikh Mohamed has made a major commitment to the key issue of our age – sustainability. In fact, His Highness made such a commitment to name 2023 as the Year of Sustainability with COP28 set to be held in the UAE, stating: “2023 is the Year of Sustainability in the UAE. Effective climate action requires a shared vision and collective will. As host of COP28, we are committed to fulfilling our role as a global convener and will continue to support action and innovation in the field of sustainability.”
The year-long aim also looks to showcase the UAE’s commitment towards fostering a global collaboration in seeking innovative solutions to challenges, such as energy, climate change and other pressing issues related to sustainability. These initiatives are overseen by H.H. Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of the Presidential Court; and H.H. Sheikha Mariam bint Mohamed bin Zayed Al Nahyan.
President His Highness Sheikh Mohamed bin Zayed also said: “Sustainability has been a fundamental principle in the United Arab Emirates since its unification. The nation continues to serve as an exceptional model for environmental conservation and resource management.
“The late Sheikh Zayed was a global leader in environmental and climate action, leaving behind a legacy that we continue to follow today.”
His Highness also emphasised that the UAE is determined for COP28 to set a precedent in the collective global efforts to address climate change. The UAE has long been a leader in promoting clean energy and building effective partnerships for the benefit of the global community. One notable recent
partnership is The UAE-US Partnership for Accelerating Clean Energy (PACE), which will catalyse US$100 billion in financing and other support in addition to deploying 100 new gigawatts (GW) of clean energy in the US, UAE and emerging economies around the world by 2035.
No list on key voices in the Middle East is complete without His Highness Sheikh Mohammed, Ruler of Dubai. As stated in other parts of this publication, Dubai has been the trailblazer when it comes to the modernising of the Middle East, and Sheikh Mohammed has been at the forefront of that charge.
Under his leadership, Dubai has become a byword for dynamism, innovation, daring and futuristic living, and building on that legacy, His Highness has recently released the UAE's 5 core priorities for 2023. HH Sheikh Mohammed revealed the 5 priorities when he chaired the first UAE cabinet meeting of 2023, after which he took to Twitter to share details of the meeting, which are as follows.
1. National identity and its consolidation
2. Environment and sustainability
3. The educational system and the development of its vision, indicators, and outputs
4. Emiratisation and its acceleration
5. Expanding the UAE's international economic partnerships
With this vision, HH Sheikh Mohammed is clearly attempting to bridge a gap that has left many nations around the world split down the middle on. Namely, does a country take a global or national-centric approach.
We’ve seen this issue at play in many major countries, with half a population seemingly eager to engage in a modern, interconnected globalised world in which national identity plays a subordinate role to interconnectedness around the
world. Meanwhile, the other half of a given nation, usually the less affluent and privileged of the two, seemingly desires a more ‘nationalistic’, protectionist approach.
Perhaps this has always been a friction in modern-day nation states, yet at no time in history has it been as explicit as it is now, which is presumably why Sheikh Mohammed is pursuing a dual track of expanding international partnerships and collaboration, while buttressing the Emirati identity of the UAE.
A Vision for 2031
Further to this, HH Sheikh Mohammed has also recently announced a new initiative entitled, ‘We The UAE 2031’, a vision that aims to double the country’s gross domestic product (GDP) from AED1.49 trillion to AED 3 trillion. The UAE also outlined its aim to double the number of tourists to 40 million over the next decade, contributing AED 450 billion to GDP.
The ‘We The UAE 2031’ vision also aims to boost industrial sector to AED 300 billion and will include an advanced industry sector worth AED 70 billion. Additionally, the Emirates aims to generate AED 800 billion in non-oil exports over the next 10 years, ranking it as one of the top 10 countries in the world in the scientific innovation index, and also in attracting international talent. The UAE also aims to be one among the top 10 nations in hydrogen energy production, by reducing greenhouse gas emissions by 18%.
Double UAE GDP from AED1.49 trillion to AED 3 trillion
Double the number of tourists from 20 million to 40 million
Add AED450 million in extra tourist income
Boost industrial sector by AED 300 billion
Reduce greenhouse gases by 18%
If the UAE broke the mould when it comes to global, open, and pioneering Middle Eastern nations, Saudi Arabia is the one taking it to the next level. With a massive interest in holding some of the world’s leading sporting events, to building the world’s tallest building, and also the futuristic mega-city NEOM, Saudi Arabia is not only a leading light for the Middle East, but the world itself.
Much of this revolution in Saudi policy has come under the rebranding strategy of its new leader, Crown Prince Mohammed Bin Salman, popularly known as ‘MBS’. One could even say that given a royal leader carries such an acronym, it points to a new era – instead of a regal sounding full name complete with honorific titles, the option that his forefathers and European royal dynasties would opt for, we have a shorthand, trendy way to refer to Saudi Arabia’s leading man which is more synonymous of a US President, such as JFK or LBJ.
MBS has become renowned globally as a progressive force in Saudi Arabia, having restricted the powers of religious police and improving women's rights, such as the removal of the ban on female drivers in 2018. Other cultural developments under his reign include the first Saudi public concerts by a female singer, the first Saudi sports stadium to admit women, an increased presence of women in the workforce, and opening the country to international tourists by introducing an e-visa system, allowing foreign visas to be applied for and issued via the Internet.
Perhaps most famous of MBS’s policies has been Vision 2030. The Saudi Vision 2030 program aims to diversify the country's economy through investment in non-oil sectors including technology and tourism. Under HRH MBS, Saudi Arabia started co-ordinating its energy policy with Russia since 2016, and also strengthened its relations with China, signing a comprehensive strategic partnership with Xi Jinping in 2022. In
2023, Saudi Arabia restored full diplomatic relations with Iran leading to a wider regional rapprochement, including negotiations for peace deal with Houthis, following talks mediated by China.
HRH Mohammed Bin Salman said the vision is rooted in 3 core pillars: “The first pillar of our vision is our status as the heart of the Arab and Islamic worlds. We recognize that Allah the Almighty has bestowed on our lands a gift more precious than oil. Our Kingdom is the Land of the Two Holy Mosques, the most sacred sites on earth, and the direction of the Kaaba (Qibla) to which more than a billion Muslims turn at prayer.
“The second pillar of our vision is our determination to become a global investment powerhouse. Our nation holds strong investment capabilities, which we will harness to stimulate our economy and diversify our revenues.
“The third pillar is transforming our unique strategic location into a global hub connecting three continents, Asia, Europe, and Africa. Our geographic position between key global waterways, makes the Kingdom of Saudi Arabia an epicentre of trade and the gateway to the world.”
His Highness Sheikh Ahmed bin
Saeed Al Maktoum has quite a resume. As well as being a member of Dubai's ruling Al Maktoum family, he is the President of the Dubai Civil Aviation Authority, CEO and founder of the Emirates Group, and chairman of investment company Dubai World. Further to this, he is also the current Chancellor of The British University in Dubai, Chairman of the Dubai Supreme Fiscal Committee, Chairman of the Dubai Airports Company, second Vice Chairman of the Dubai Executive Council, and Chairman of Emirates NBD Bank PJSC.
Given the various roles and influence Sheikh Ahmed holds, he is a key voice in the Middle East and a major player in how the region will develop in the future. HH Sheikh Ahmed bin Saeed Al Maktoum began his aviation career in 1985, when he was appointed President of the Dubai Department of Civil Aviation. In the same year, he became Chairman of the newly founded Emirates, and helmed the launch of the airline with two leased aircraft to two destinations from Dubai.
Today, he leads the Emirates Group, which includes dnata, one of the world's largest air services providers offering ground handling, cargo, travel, and flight catering services across five continents. Emirates is now an award-winning global airline with a network of more than 150 destinations spanning six continents. With more than 270 aircraft, the airline has the world’s largest fleet of Boeing 777s and Airbus A380s. Under his leadership, Emirates has been profitable for the last 30 years, a rarity in the airline industry.
Most recently, Emirates reported an annual profit of AED10.9 billion (US$3.0 billion), a new profit and revenue record and a significant turnaround from 21/22 (increase of 81%) with strong customer demand worldwide with almost all travel restrictions removed. HH Sheikh Ahmed bin Saeed Al Maktoum, took the news in humble fashion, pointing to the broader regional reforms of HH Sheikh Mohammed: “We’re proud of our 2022-23 performance which is not only a full recovery, but also a record result. This achievement would not have been possible without HH Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister, and Ruler of Dubai, whose leadership has been critical to our success today and through the years.
“The architect of Dubai’s
progressive economic policies, HH Sheikh Mohammed is also the engine behind the Emirates Group’s trajectory. Without his drive and support, Emirates will be half the size of what we are today.”
Regarding the future, Sheikh Ahmed said: “We go into 2023-24 with a strong positive outlook and expect the Group to remain profitable. We will work hard to hit our targets while keeping a close watch on inflation, high fuel prices, and political and economic uncertainty.”
His Highness is sounding a confident note for the future, believing his organisation can maintain multiple airlines, digitise processes, double its cargo capacity in the next year, and make major steps towards a sustainable industry. On a final note, Sheikh Ahmed has committed US$200 million to a newly created aviation sustainability fund.
Sultan Ahmed bin Sulayem has become synonymous with the growth in logistics in the Middle East region, perhaps now being the most instantly recognisable figure due to his leadership of port operating giant DP World.
While not being the biggest, DP World itself is arguably the most globally renowned port operator in the world given its investments in ports and terminals globally and its famed golf tournament. Such developments are typical of Sultan Ahmed bin Sulayem and synergise with the vision of Dubai, that is to create positive, forwardthinking, and internationally respected brands.
With regards to DP World, the Dubaibased ports and logistics firm saw its gross volume grow by 1.4% year-on-year in the first quarter of 2023 with Sultan Ahmed bin Sulayem citing a “somewhat uncertain” near term outlook, but saying he expected a stable performance this year.
Sultan Ahmed bin Sulayem said: “A strong performance in Asia Pacific and India drove our growth. However, as anticipated, volume growth has softened in some regions, such as Europe and the Americas, due to uncertain economic conditions. Volumes at our flagship Jebel Ali terminals remain robust, with growth of 2.3%.
“Looking ahead, the near-term outlook remains somewhat uncertain given the geopolitical backdrop, high inflation, and currency fluctuations. However, we expect our portfolio to deliver a stable performance in 2023 as we remain focused on driving revenue synergies from our recent acquisitions while managing costs and growth capex.”
Under Sultan Ahmed bin Sulayem’s stewardship, DP World handled 19.5 million twenty-foot equivalent units (TEU) across its global container terminals in the first quarter of 2023, with gross container volumes increasing by 1.4% year-on-year on a reported basis and up 3.7% on a like-for-like basis. Jebel Ali Port alone handled 3.5 million TEU, up 2.3% YoY.
On a consolidated level, the company’s terminals handled 11.4 million TEU during the first quarter, up 0.7% YoY, on a reported basis but down 1.3% on a likefor-like basis, a Nasdaq statement said. DP World has operations in 60 countries on all continents, employing more than 100,000 people.
In other news, DP World and the Saudi Arabia-based Hassana Investment Company (Hassana) have announced an
investment of approximately US$2.4bn in three of DP World’s flagship UAE assets. This sale of a strategic minority stake in Jebel Ali Port, Jebel Ali Free Zone, and National Industries Park, follows on the earlier transaction that successfully closed in June 2022.
Investment by Hassana implies a total enterprise value of approximately $23bn for the three assets. The Jebel Ali Port, Free Zone and National Industries Park together comprise a best-in-class group of infrastructure assets, with a solid long-term track record of growth. Combined, they form a world-class integrated ecosystem for the supply and logistics chains of over 9,000 companies from around the world, serving more than 3.5 billion people globally. The three assets generated pro-forma 2021 revenue of $1.9 bn.
Amadou Diallo is CEO of DHL Global Forwarding Middle East & Africa. Based in Dubai, he is responsible for the performance and long-term strategic development of the unit. With an overview of the African and Middle Eastern markets, Mr Diallo has the advantage of understanding major markets as individual units and as cohesive wholes.
One of Diallo’s key tasks is harnessing the power of these regions, both in terms of present operations, and how new energy can be fostered. One way in which DHL is doing this is via its Fast Forward Challenge, a global competition that aims to encourage companies across the world to showcase innovative technologies in the logistics industry, with a particular focus on sustainability.
Amadou Diallo said of the challenge: “There were some genuinely
outstanding ideas at the Fast Forward Challenge this year. Every single one of the ideas and pitches at the regional edition was path-breaking, but ARC Ride [he winner] showcased a robust, scalable model that incorporated a fleet of electric vehicles and the infrastructure for battery charging.
“We witnessed a definitive shift and growing commitment among young entrepreneurs to pursue sustainable business ideas. There was also increased collaboration using technology in transformational new ways.”
And Diallo’s commitment to bringing forth new energy in the sector doesn’t stop there, having recently spoken on how organisations can capitalise on new opportunities in Africa. He recently said: “Against the backdrop of rising unemployment and underemployment, and low-paying, unstable and hazardous sources of
income, entrepreneurship has become one of the most sustainable job generation tools available to young people.
“Bright young minds that can identify opportunities and deliver solutions are vigorously embracing this opportunity, and for a good reason: high levels of entrepreneurial activity may yield high returns in the future. The International Monetary Fund (IMF) estimates that the global population will increase by about two billion over the next three decades, with half of that growth coming from sub-Saharan Africa (SSA).
“The region’s population is projected to double from nearly one billion to two billion, making it potentially one of the world’s most dynamic economies. It will also have the world's youngest population, so its entrepreneurs must be cushioned against future economic shockwaves.”
Captain Mohamed Juma
Al Shamisi is well known to TLME having been the recipient of the Most Innovative Executive Award for 2022. Capt. Al Shamisi won the award after leading Abu Dhabi Ports Group from a project-focused organisation to a fully operational, integrated business across 5 clusters.
The clusters Capt. Al Shamisi built are: Digital, Economic Cities & Free Zones, Logistics, Maritime, and Ports. Under the leadership of Mohamed Juma Al Shamisi, AD Ports Group holds a prime position in the region’s commercial maritime industry, whilst boosting Abu Dhabi’s global profile.
Since joining AD Ports Group in 2008, Mohamed Juma Al Shamisi has held key leadership positions within its portfolio, including Executive Vice President for the Ports unit, where he was instrumental in restructuring and rationalising its assets. He also oversaw the completion and commissioning of the first phase of the group’s flagship Khalifa Port and KIZAD, its adjacent economic zone.
Since winning the aforementioned award, Capt. Al Shamisi has continued his path of innovation, most recently signing a deal to establish Abu Dhabi’s first EV assembly facility. Within the first phase, the facility will have an annual capacity of between 5,000 to 10,000 units for SDK EVs.
Abu Dhabi’s KIZAD has also signed a lease agreement with NWTN to build an Electric Vehicle (EV) assembly facility, in a bid to serve the growing demand for sustainable
transport. The signing ceremony took place within KIZAD and NWTN also used the opportunity to demonstrate its EV offerings.
Capt. Al Shamisi said: “AD Ports Group is committed to driving sustainable manufacturing, and this key strategic partnership in KIZAD will support our wise leadership’s vision to advance industrial competitiveness while protecting the environment.”
Under Capt. Al Shamisi’s
stewardship, AD Ports has also committed to further expand Khalifa Port to include drydock services. With this expansion, Khalifa Port will expand its range of port and marine logistics services, from container and cargo handling to vessel repairs and maintenance, to better serve existing clients and attract new ones.
As well as the above, AD Ports continues to make new ties to the wider world, most recently with Angola and Egypt.
As CEO of Dubai Airports, Paul Griffiths is tasked with the responsibility for the operation and development of Dubai International (DXB) – the world’s busiest airport for international passengers, as well as Dubai World Central (DWC).
After a turbulent last few years, Dubai Airports has had the task of restoring its operations to prepandemic levels, and Dubai Airports said on Tuesday that traffic at Dubai International (DXB) for the first quarter of 2023 had reached 95.6% of the corresponding period in 2019 (prepandemic), with passenger numbers exceeding 21.2 million.
DXB’s strong performance in the first quarter has meant that officials have now revised the forecast for the airport’s annual passenger traffic. Paul Griffiths said: “With important developments in the international travel sector such as the further easing of travel protocols in China, and the upcoming local annual seasonal peaks and festive holidays, our outlook for the second quarter and the remainder of the year remains bullish. Accordingly, we have had to readjust our traffic forecast for 2023 upward to 83.6 million passengers, which will put DXB within striking distance to our 2019 annual traffic.”
A key element of Griffiths’ leadership has been the focus on energy efficiency, in fact, the Dubai Airports chief recently met with HE Saeed Mohammed Al Tayer, MD & CEO of Dubai Electricity and Water Authority (DEWA) to discuss enhancing bilateral cooperation between DEWA and Dubai Airports.
The meeting aimed to exchange views to achieve common goals and support government directions. The meeting also discussed the latest developments in the project undertaken by Etihad Energy Services Company (Etihad ESCO), which is a wholly owned subsidiary of DEWA. The project aims to retrofit a number
Joined Dubai Airports as its first CEO in October 2007
Instrumental in the flawless launch of Terminal 3 at DXB
In 2010, successfully opened the Emirate’s second airport, DWC
He achieved another milestone in Dubai’s aviation history on 2 January 2013 with the opening of Concourse A, the world’s first purpose-built A380 facility and again with Concourse D on February 24, 2016.
Paul also oversaw the opening of the passenger terminal at DWC on 27 October 2013
On December 20, 2018, Paul joined Dubai Airports’ Chairman HH Sheikh Ahmed bin Saeed Al Maktoum in welcoming DXB’s billionth passenger
of buildings at Dubai Airports to optimize energy efficiency.
Mr Griffiths said: “As an organisation that puts sustainability at the forefront of its long-term strategy, we at Dubai Airports are proud to partner with DEWA on the Etihad Energy Services Company (Etihad ESCO) project to retrofit a number of buildings at Dubai Airports and enhance energy efficiency.
“By working together towards a sustainable future, we aim to contribute to the UAE government's goal towards a net-zero carbon emissions economy by 2050. A key priority in 2023 is to deliver sustainable operations as we strive to maintain our position as the world's busiest global hub. With the UAE hosting COP 28 this year, we are very excited about the developments and opportunities that we are presented with and our role in achieving them.”
As the leading figure in Saudi Aramco, the world’s leading integrated energy and chemicals organisation, and the largest provider of crude oil to global markets, Amin Nasser plays a vital role in Middle Eastern and global development. Nasser is also leading Saudi Aramco’s efforts to produce cleaner energy and products through investments in promising technologies such as next-generation fuel-engine interfaces, crude oil-tochemicals processes, and renewable energy applications; entrepreneurial start-ups focused on cleaner energy solutions; and industry-wide efforts to minimize greenhouse gas emissions, such as the Oil and Gas Climate Initiative (OGCI). He is also an advocate for an efficient, accessible, and world-class supply chain ecosystem that includes smallto-medium-sized enterprises (SMEs) to support Saudi Aramco's growing procurement needs.
As well as leading positive change in the sector, Nasser also plays a key role in aiding global superpower China into a more secure future. He said: “Saudi Aramco aims to play a key role at the heart of China’s long-term energy security and high-quality development,” also stating that Saudi Aramco will expand its oil production capacity to 13 million barrels per day by 2027 while increasing gas production by more than 50% by 2030 to fuel China’s efforts to this end.
Mr Nasser added: “We are also working on solutions such as advanced carbon capture and storage (CCS) and circular carbon economy technologies. Furthermore, we recently launched a US$1.5 billion venture capital sustainability fund to invest in advanced technologies to help us move closer to a net-zero emissions future.
“We want to be an all-inclusive source of energy and chemicals for China’s long-term energy security and China’s high-quality development. That is why we are doubling down on China’s energy supply, including new lower carbon products, chemicals, and advanced materials, all supported by emissions reduction technologies.”
Nasser has also been sounding the alarm with regards to oil capacity of late. According to a statement he made in late 2022, spare global oil production capacity is running thin, and the world should be "worried" about the impact of a rebound in demand when China winds down its zero-COVID policy and aviation
demand fully recovers.
Nasser has also said Saudi Aramco is aiming for 3 million barrels per day of additional oil export capacity by the end of this decade, led by incremental oil and gas projects in the country and by replacing liquid fuels. Chief executive Amin Nasser said he is aiming to free up additional oil barrels for exports in the coming years.
Nasser noted that 1 million bpd of additional crude capacity would come from Aramco’s ongoing capacity enhancement programme by 2027, and another 1 million bpd would follow from “availing additional gas in the utilities sector”, which is presently being used as liquids.
Othman Aljeda was appointed as the Chief Executive Officer (CEO) of Aramex in May 2021, where he is responsible for leading the successful development and execution of the company’s long-term global business strategy. Mr. Aljeda has over 27 years of international experience across logistics, supply chain management, and e-commerce sectors. Prior to his current role, he served as Aramex’s Regional CEO in Europe, North America, and Asia. In addition to his regional CEO responsibilities, he also served as interim Chief Operating Officer for six months in 2020.
Aramex itself is an Emirati (Jordanian Origin) multinational logistics, courier and package delivery company based in Dubai. It is the first Arab-based company to be listed on the NASDAQ stock exchange and the company has approximately 18,000 employees in 70 countries.
Aramex is making major strides in the Middle East by revolutionising eCommerce. In 2022, it entered into a binding agreement to fully acquire Access USA Shipping LLC (MyUS), a global technology-driven platform that enables cross-border e-commerce, for a cash purchase price of US$265 million.
MyUS is a US-headquartered, technology-driven, and cross-border e-commerce platform, providing costeffective package forwarding solutions to millions of customers who shop from retailers based in the US, UK, and China. The acquisition is in line with Aramex’s strategy to expand its cross-border operations and to capitalize on the attractive growth opportunities from a fast-growing US$4 trillion global e-Commerce sector.
Commenting on the acquisition, Othman Aljeda said: “We look forward to soon welcoming MyUS’s customers and employees to Aramex. MyUS’s business and expertise are a natural extension of our solutions, a complementary to our flagship product- Shop & Ship,
and we see significant benefits to be derived from this acquisition. We believe this transaction will open new trade lanes for both companies, as well as increase trade flow from major global trade hubs into the Middle East, where Aramex is a leading player. We are acquiring a profitable business and this transaction is value accretive to Aramex and our shareholders. It will also create great value for our customers and partners.”
More recently, Aramex signed an agreement with Abu Dhabi Ports Group to set up a joint venture to serve the freight forwarding industry. The new non-vessel operating common carrier (NVOCC) enterprise will be 51% owned by AD Ports Group, while Aramex will have the remaining stake, Aramex said in a statement to the Dubai Financial Market, where its shares are traded that the NVOCC company will provide “tailored solutions to all freight forwarding industry players” and will serve their oceanbound container cargo.
The company added that it will be vital in “enhancing and developing shipping connectivity across the GCC, Indian, and East and West African markets with a target of 10,000 containers in the short-term”.
Ahmed Bahrozyan has both the fortune and the pressure of overseeing transport operations in one of the most visionary and futuristic cities on earth. Given the ambitions of Dubai and the UAE’s rulers, this is no easy task. An example of this is the present drive towards autonomous taxis, as Dubai strives to be the first city to facilitate such an innovation.
With regards to this, Dubai’s Roads and Transport Authority in partnership with self-driving technology company Cruise, has announced that they have initiated data collection and testing of its technology for Dubai’s traffic signals, signage, and drivers’ behaviour, among other attributes using five Chevy Bolt-based autonomous vehicles in Jumeirah 1 area. This initiative marks a fundamental step toward the launch of self-driving ride-hailing services in the city.
Mr Bahrozyan said: “Data collection and testing is a crucial phase in Dubai’s quest for excellence in smart mobility and advanced technology. The work being done will ensure Cruise’s advanced generalisable AI and autonomous driving systems safely adapt to Dubai traffic conditions. The aim is to obtain the best readings and data through on-board lidars, radars and cameras that capture data and images within a 360-degree field of vision.”
And this isn’t the only taxi-based innovation in the works, perhaps even more unbelievably, Dubai is aiming to introduce air taxis in the next three years. Mr Bahrozyan stated: “We believe that the air taxis will work like an air limousine service targeting high spenders in its initial days and will
potentially attract tourists who want to see the city of Dubai from the sky.”
The pricing for the flying taxis “… will be in the range of a limousine service in Dubai, maybe slightly higher,” according to Bahrozyan. The RTA describes limo services rates as “at least 30% higher than taxi fares” in the city. Taxis have a minimum fare of around US$3.25 and charge $0.50 a kilometre.
As well as being extremely ambitious, which is in keeping with Dubai, autonomous taxis – both in the air and on the ground – offer the value of being much more. There’s also the desire to move away from
carbon-belching gasoline and diesel vehicles as the UAE will host the upcoming United Nations COP28 climate talks later this year. That’s even as the Emirates hopes to expand its production of crude oil ahead of a promised “carbon-neutral” future by 2050.
Meanwhile, Dubai hopes to have a quarter of all cars on its roads be driverless by 2030 green, and this will be a major selling point at the upcoming COP28 in Dubai. On this note, Dubai aims to have a quarter of all cars on its roads be driverless by 2030, presumably with that being offset by taxi services.
Infrastructure has been a buzzword in global government and commerce in recent years for several key reasons, but the most important is the limitations legacy structures impinge on modern nationstates. This is a particular problem is the countries that boomed in the 19th and 20th centuries, specifically those in Europe and North America, as cities and regions were planned with 19th and 20th century structures, technology, and populations in mind.
In the present day, many Western nations are delving into the promising future of infrastructural developments in order to try and rework the jigsaw of their aging city geographies, however, the Middle East is in the exact opposite scenario. The Middle East region has the huge advantage of being able to learn from the Western world’s mistakes, as well as having vast swathes of land to build upon, with the financial backing to realise brave and innovative new projects.
Henceforth, infrastructure in the Middle East region is truly exciting in what we could witness in the coming years. Below are several projects to keep an eye on that will change the way human beings live, work, and think about our existence.
NEOM is the flagship project of Saudi Arabia’s Vision 2030. It is a US$500 billion high-tech city on the country’s northwest coast. Situated at the “crossroads of the world,” the city will span 26,500km² and is strategically placed east of Egypt, South of Jordan, and extends 460 km along the coast of the Red Sea. Dedicated to future technologies across 16 sectors— including food, manufacturing, and technology—NEOM will introduce a new model for living. Focusing on nature and creating a sustainable, liveable, and walkable city, NEOM will be powered by 100% renewable energy and become a tourist and innovation hub. At the centre of the city’s design is The Line—a 170km belt of hyperconnected future communities
without cars and roads and built around nature. This revolution in urban living at NEOM is desired to become a blueprint for how people and the planet can co-exist in harmony.
Designed by legendary architect Frank Gehry, the Guggenheim Museum in Abu Dhabi will open in 2025. Located in the heart of the Saadiyat Cultural District, the museum is a collaboration between the Department of Culture and Tourism—Abu Dhabi (DCT) and the Solomon R. Guggenheim Foundation. The 42,000sqm building will become the largest of the four Guggenheim museums globally. The design of the building is “an experiment in inventive 21st-century museum design” and will comprise a cluster of galleries of varying heights, shapes, and characters. The final building will also contain a centre for art and technology, a children's education facility, archives, a library,
and a conservation laboratory.
Etihad Rail
Etihad Rail is the UAE’s new national rail network. With the goal of connecting the UAE to the Gulf Cooperation Council (GCC)—a political and economic union of six Arab states bordering the UAE, KSA, Qatar, Oman, Kuwait, and Bahrain— the state-of-the-art network will form a vital part of the planned railway network across the GCC. Built in several stages, the railway will eventually stretch for 1,000km across the UAE. Stage One connecting Shah and Habshan to Ruwais was completed in January 2016. Stage Two will connect Ruwais with Ghuweifat on the UAE border with Saudi Arabia is underway. The railway will redefine logistics and transport in the region, providing a modern, safe, efficient, and sustainable network and will act as a catalyst for economic growth and sustained social development.
Big Data and the Internet of Things, better known as IoT, are often used interchangeably yet refer to different things. Big Data is pretty much as it sounds – copious amounts of data recorded over time that offers insights into future planning. IoT meanwhile refers to the organisation of and digital connection between ‘things’ in a given environment. Hence, one of the core arenas for IoT is the modern smart city and its key nodes, those being namely the transport logistics hubs, such as roads, ports, and airports.
Despite being distinct fields, in the modern world Big Data and IoT are somewhat intrinsically tied, for we cannot plan the functioning of a smart city if we don’t have a wealth of data to back up our predictive analytics in programming our operations. Because of this, IoT needs Big Data to be realised, and Big Data needs IoT in order to display its full capacity.
So why is this a key theme for 2023 and beyond? Well, it’s important to remember that most businesses will have to adapt and evolve their technology to be able to collate large amounts of data in order to benefit from much of Big Data’s insights. IoT devices will be able to send messages to the businesses, including
information such as activity and behaviours.
Once the business has received this data, it needs to be stored by a platform that can handle such large and complex data. Then, businesses can refer back to this data whenever they are developing a product, analysing customer behaviours, reflecting on the launch of a product, and much, much more. Most importantly, this information is safely stored and can be accessed by businesses whenever it is needed.
Such technology offers businesses in the transport and logistics space a huge – let me say again, huge – advantage on the competition. Granted it takes time and patience to truly ‘harvest’ the energy of Big Data – wine-making references are often used in the Big Data space, specifically around the notion of letting data ‘mature’ – and it takes skilled operators to implement the trends of mass data into actionable steps for IoT-centric operations, yet once the code is cracked, the potential for massive strides forward is unrivalled.
Naturally, in the world of cargo travel, such technology has the promise to predict and ease bottlenecks, organise logistical structures to a point, and to ensure cleaner operations via modulating downtimes and planning for peaks.
When we think of artificial intelligence (AI), the popular imagination often conjures up images of futuristic, human-like sentient robots fulfilling menial duties humans once did. While this vision isn’t a million miles from reality, it is only a small element of modern AI, a subset if you will.
The AI that’s become the most prominent in 2023 isn’t such much the human clone or the robot, but the computer-based chatbot. Most famous in this regard is ChatGPT, an app out of the USA that provides insights into any question you can ask, as well as having the ability to think, calculate and even write essays and news pieces of its own, which could mean great trouble for editors and writers out there (eek!).
The prevalence of ChatGPT promises a revolution in working practices, with automated systems now having the power to offer
business much cheaper (and arguably more accurate) copy. However, even ChatGPT creator and chief Sam Altman, warned the US Senate words of warning for the technology that he helped become mainstream.
Altman, who co-founded OpenAI (the mother company of ChatGPT) in 2015 with financial backing from Elon Musk, warned that if artificial intelligence (AI) and machine learning technology go wrong, “it can go quite wrong”. Altman said: “OpenAI was founded on the belief that artificial intelligence has the potential to improve nearly every aspect of our lives, but also that it creates serious risks… We think that regulatory intervention by governments will be critical to mitigate the risks of increasingly powerful models”.
These words are rather sage given our world runs the risk of developing slower than the technology we create.
The artificial intelligence market has been on a swift growth path for
several years – so much so that the industry is expected to reach US$42.4 billion in 2023. This momentum will continue, and we’re starting to realize it with the debut of powerful new AI-powered tools and services across industries.
Most recently, there has been a shift from the well-understood role of AI in analysis and prediction – helping data scientists and enterprises make sense of the world and chart their courses accordingly – to new and innovative systems, like DALL-E, that are producing entirely new artifacts that have never been seen before.
With the AI world very much democratised (meaning anyone can use open-source software to make advancements of their own – even AI itself), the future looks full of a heady blend of massive potential, but also massive risk. This is why global governments and regions will soon be looking for a code of ethics under which AI can operate.
With great technological advancement comes great risk. Given the mass of financial transactions are now done completely online, along with the core of business strategies, there are plentiful opportunities for cybercriminals to try to steal assets and cash.
There is no easy fix to this given that the figures that private companies, security firms and governments can offer cyber-experts simply do not match the figures cybercriminals can earn through illicit means. To offer an idea into the scale of this issue, according to Cybersecurity Ventures, the cost of cybercrime is predicted to hit US$8 trillion in 2023, growing to $410.5 trillion by 2025. This figure is so large, that if cybercrime was a nation state, it would have the third largest GDP in the world.
Cybercrime went up a gear during the recent global pandemic when cyber criminals took advantage of misaligned networks as businesses moved to remote work environments. In 2020, malware attacks increased 358% compared to 2019. From here, cyberattacks globally increased by 125% through 2021, and increasing volumes of cyberattacks continued to threaten businesses and individuals in 2022. This all begs the question, what can we do about it in 2023?
Here are several key steps any modern business can take to deal with cybercrime. Firstly, it is imperative to invest in training. Cybersecurity training is a modern-day necessary expense, and it should always be ongoing to ensure that your team are up to date with potential threats and how to avoid them. Given the tactics and techniques of cybercriminals are always changing, it pays to stay up to date, as what worked last year, won’t this year. So, whether it’s implementing in-person seminars at your office or setting online training courses for your team to complete, it’s important that the training covers all aspects of cybersecurity that they need to be aware of, from identifying
phishing scams to knowing who to approach if they fall victim to an attack.
Another key step is to regularly update systems. Out-of-date software can leave gaps that render your information vulnerable to attack from cyber criminals. Ensuring that you are regularly updating your system, applications, and programmes can prevent cybercriminals from taking advantage of patchy software to gain access to your data.
Finally, another major step is a focus on mobile device management. With business no longer being tied to a physical premises, your team will be accessing data from a range of devices including mobiles and laptops. It’s important to keep control over your business mobile devices, by implementing mobile device management solutions that prevent business-critical data from being stolen, hacked, or lost via a mobile device.
Recent years have marked a major change in social and cultural attitudes, with a new generation of workers having high standards when it comes to fair and equitable treatment of people no matter their social, cultural, ethnic or gender background. This entered the corporate sphere in a major way, meaning those who fail to ensure they are living by such standards risk a public relations nightmare.
Following on from this, we’ve seen major corporations around the world invest heavily into programmes that offer fast-track growth strategies for disadvantaged groups, as well as marking time for cultural understanding and emphasising the role of women in the workforce.
Many workplaces today focus on ‘DEI’ instead of diversity and inclusion (D&I). DEI stands for ‘diversity’, ‘equity’, and ‘inclusion’, with equity now just as crucial as D&I in several global companies. Equity in the workplace refers to fair and impartial processes and outcomes for each individual in the company. To ensure fair and impartial processes and outcomes, leaders and employers need to be mindful of the challenges, barriers, and advantages
at play for everyone at any given point in time. Equity is the reminder that not everyone starts at the same level playing field, and so swift and vigilant action is paramount to building a fair workplace.
As well as being mindful of cultural sensitivities and conscious of inequalities, DEI also focusses on mental health considerations. The unprecedented arrival of a global pandemic and its aftermath was a blow to the mental health of employees and professionals across the globe. Even though the conversation around the mental health and wellbeing of employees was already gaining traction in the past couple of years, recent times have witnessed it take a whole new turn.
With businesses shutting down, people losing jobs, adjusting to the new normal of working from home, and the constant health scare of getting coronavirus, there was a lot that hampered the peace and sanity of employees. Consequently, a relevant diversity and inclusion trend in 2023 will be for organizations to take intentional steps at supporting the mental health of its diverse pool of talent. This does not only include putting effective policies in place. The simple things like how supervisors, managers, and co-workers talk, behave, and empathize with each other matter as well.
In essence, the modern workplace is fast becoming a realm that prizes safety, equality, and togetherness at its core.
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