Technological Innovations: Embracing the Digital Age
Lunate, an Abu Dhabi based investment firm, and Blackstone, an alternative asset manager, are targeting investments in logistics assets across the GCC, through a new platform called Gulf Logistics Infrastructure Development Enterprise (GLIDE). The companies plan to target $5 billion in high-quality warehouse assets to speed up the logistics infrastructure improvement in the GCC. They plan to focus on greenfield developments, selective portfolio acquisitions and sale and leaseback transactions.
The UAE, today acknowledged as a worldwide logistics hub, is introducing technology innovations to the transportation sector. Smart logistics solutions such as AI, blockchain, and the IoT, have revolutionized logistics operations. Technology plays a vital role in enhancing logistics efficiency in the UAE. Through automating and using robotics in warehouses and ports, operations are streamlined, human error is diminished, and throughput is increased.
Ibrahim Al-Dali, Supply Chain Head, Al-Yamama Holding Company said, “Technology will never replace people. In fact, I believe that AI, IoT, machine learning and other technologies will need the industry to employ more people to manage them. I believe for a supply chain to be sustainable, there are three main components that need to be considered – the resilient supply chain, the green supply chain and the circular supply chain. There needs to be a long-term investment in sustainability in order for the industry to achieve its goals.”
Digital retail and logistics management systems are tackling complex supply chains and providing supply chain partners with greater visibility of real-time tracking and data analytics. These advances create more efficient supply systems while attracting international businesses that want to use the latest in logistics technology. Companies such as Qafila, GAC Group, and DHL are implementing these innovations to streamline warehouse operations, reduce errors, and provide faster, more secure logistics services.
Mohammed Hussain Al Busaleh, Director of Emergency & Crisis Management, Ministry of Municipalities and & Housing (KSA) said , “Real-time data using IoT, for example, to manage supply chain activities and make smarter decisions overall, is what is going to provide long-term efficiencies. Even though AI is not 100% implemented across the supply chain, it is being leveraged across the globe and has proved to be a reliable approach for improving the resilience of the supply chain.”
In conclusion, the United Arab Emirates is progressing towards future global logistics hub status through their strategic programs and investment. With the developments in infrastructure, technology, government support, and sustainability, the UAE has established the foundations of a strong logistics cluster. Overall, the future for the UAE's logistics sector is bright, and is only set to grow and innovate. This ultimately means the UAE will continue to develop into a global logistics player.