Sultanate ranks 14th in emerging markets logistics competitiveness
With its business-friendly conditions and improved logistics and transportation infrastructure, Oman has been ranked 14th globally on the Agility Emerging Markets Logistics Index.
The index is a broad gauge of competitiveness based on logistics strength and business fundamentals. Gulf countries outperformed most other emerging market regions in the 11th annual Agility Emerging Markets Logistics Index which was released on Monday.
According to Agility, Gulf countries as a group are the world’s most business-friendly emerging markets. Businessfriendly conditions and core strengths position several Gulf countries at the top of the index, behind giants China (1) and India (2), and alongside Southeast Asian nations.
In the GCC region, the UAE ranked at third position globally, Saudi Arabia at sixth, Qatar at seventh, Bahrain came at 15th and Kuwait achieved 19th rank in this year’s Agility Emerging Markets Logistics Index. “The Gulf nations continue to diversify, making steady progress in streamlining regulation and realising increased digital capabilities,” said Elias Monem, CEO of Middle East & Africa for Agility GIL.
“The entire region is growing and the outlook continues to be healthy as we enter the new decade.” Agility’s annual survey of 780 supply chain professionals reveals overall pessimism about the world economy with 64 per cent saying a global recession is likely, and only 12 per cent of executives saying a recession is unlikely. Downward pressure on global trade volumes, uncertain growth prospects and the ongoing trade war between the US and China are driving this belief.
The index ranks 50 countries by factors that make them attractive to logistics providers, freight forwarders, shipping lines, air cargo carriers and distributors. Despite the belief a recession is likely, emerging markets still grew an estimated 3.7 per cent in 2019 and are projected by the International Monetary Fund to grow 4.4 per cent in 2020.
As for what is driving emerging markets growth, 23 per cent say modernisation of customs systems and processes; 18 per cent cite increased Internet penetration; 16 per cent say modernisation of logistics provider systems; and 15 per cent mention increased adoption and modernisation of online payment systems.
E-commerce fulfillment, in the survey, is the top choice for logistics services that are expected to maintain or improve growth, well ahead of other services like domestic last-mile delivery and inter