UAE is implementing Advanced Cold Chain and Logistics Technology. Know Why!
UAE is advancing in all fields, be it education, tourism, healthcare, the glass sector, infrastructure, and aviation. All these sectors require the use of effective cold chain and supply chain solutions due to their hot and humid weather.
Due to all the combined factors UAE cold chain market is projected to reach $4.8 billion by 2027 and is inviting key global players who can advance the sector through their innovative cold chain management and supply chain technology solutions.
Modern technologies are transforming the supply chain sector. The "smart" supply chain is poised to become the new standard thanks to its quickly advancing capabilities in generative AI, data analytics, automation, machine learning, Internet of Things (IoT), blockchain, and other fields.
Let us explore 5 reasons why the country is striving hard to bring the latest technologies and solutions in the cold chain to practise.
1) High Imports of Food & Beverages - 1) UAE along with the entire Middle East has a dry climate. Its limited availability of water resources adds to the crisis and challenge to grow healthy and produce locally.
Moreover, the GCC countries struggle with accessibility rather than affordability. Read the report to know more.
Why would the cold chain and logistics supply do better?
By implementing a stricter and much more regulated industry, the UAE aims to achieve the following results and these are;
● Food Safety & Security Restoration - UAE is one of the most developed GCC countries and holds the highest net migration rate. Which means more mouths to feed.
Once the food is imported or grown locally, it would then require optimum temperature for maintaining the safety, freshness and quality.
In addition to that, cold chain and logistics solutions in UAE would also add up to helping the food and retail chain industries so that they experiment with more variety of frozen food while maintaining the quality for a longer period.
2) Growing Population - UAE's economy is growing and hence the population. According to the Khaleej Times's report, in the first three months of 2024, the country's population grew by 25700.
With the growing population, and increasing economy, disposable income also grows and hence, demand for processed food items, pharmaceuticals and other temperature-sensitive products has started to show a considerable amount of boom.
3) E-Commerce Boom - The UAE e-commerce market is expected to grow from USD 11.01 billion in 2024 to USD 18.99 billion by 2029, with an average yearly growth rate of 11.52% according to the latest report published by Mordor Intelligence.
Similar website eCommerce Insights also segregates the verticals in percentage and reports that out of the total increase, the latest shareholders are Electronics which is 33.3% followed by Fashion at 30.2%, Grocery at 17.0%, Hobby & Leisure at 8.4%, Care Products with 3.8%, DIY with 3.7%, and Furniture & Homeware with the remaining 3.7%. '
4) Strong Government Support - The UAE's government Vision 2021 and Vision 2030, both prioritise strong support for various initiatives about cold chain and infrastructural technology.
Apart from that, the government is also pushing hard to strengthen industries like:
1) A good amount of funds are being sanctioned periodically to cater to logistics facilities, cold storage and transportation networks.
2) Additionally, the government is pushing Third Party Logistics (3PL) to upgrade freight terminals, free zones, distribution centres, and seaports with large investments.
3) New routes with better commute facilities are being developed. One such recent initiative is Al Mafraq-Al Ghuwaifat road" in the UAE. This road upgrade initiative is aimed at enhancing 246 kilometres of roads in the western region of the UAE to improve connectivity and efficiency in logistics and transportation.
Strategic Location - UAE enjoys the status of being the gateway between East and West along with having a very good economic strength. This further facilitates smooth international trade and investment making it much easier for global companies.
Some of the top achievements are as follows;
1) UAE has 10 Major Airports and 12 seaports.
2) Roads are also developed with wide transport facilities.
3) In alignment with its sustainable development agenda, the country has made significant investments in public transport and renewable energy projects.
4) According to the United Nations Conference on Trade and Development's World Investment Report 2023 (WIR), the United Arab Emirates received US$22.7 billion in foreign direct investment in 2022, the highest sum ever recorded.
5) Very recently, the news of UAE made headlines where it was set to host a new international manufacturing hub for electric refrigeration trucks. This initiative follows a significant investment from a local UAE entity, aimed at advancing clean energy and high-tech industries - enhancing the cold chain and logistics industry.
So, now we see that there are a lot of prospects to go to the UAE and do business in the cold chain and logistics industry. To facilitate this, we are coming up with an innovative platform this September that would cater to global business leaders looking to expand their businesses in the region.
We are talking about none other than the World ColdChain Expo 2024 which is set to take place on 24th - 25th September 2024 at Mövenpick Grand Al Bustan Dubai.
Register for the show today - https://lnkd.in/dwjumNKU