Abdullah bin Dmeithan: A New Era for Global Trade
Abdullah bin Dmeithan, the CEO and General Director of DB World in the Gulf Cooperation Council, stated that Dubai is shaping a new phase in global trade characterized by quick adaptability to changes and enhanced resilience. This initiative involves a comprehensive integration of maritime and air freight services, responding to unprecedented pressures in international trade resulting from tariff wars, rising protectionist policies, and shipping companies’ hesitance to resume routes through the Red Sea.
Hybrid Connection: A Lifeline for Businesses
In an exclusive statement, bin Dmeithan highlighted that Dubai’s integrated model of linking sea and air freight has been a lifeline for many companies facing recent disruptions in global trade. He pointed out that this approach allows for minimizing delays and ensuring a steady flow of goods. Shipments from Asia reach Jebel Ali Port, after which they are transported by air via Dubai airports to Europe, saving valuable time and avoiding bottlenecks.
He elaborated on the extensive impacts of tensions in the Red Sea, noting that ships traveling between Europe and Asia have been rerouted around the Cape of Good Hope, a longer journey adding approximately 4,000 nautical miles and 15 additional days to their voyages.
Since late 2023, over 6,600 ships have opted for routes avoiding the Suez Canal, choosing alternative paths to reduce risks.
In May, the canal’s transit activity dropped to its lowest level in over a decade, with only 100 vessels passing through. Additionally, maritime traffic from China to southern California ports decreased by nearly 44% in the first week of May compared to the same period the previous year, though it saw recovery in June as tariffs were eased.
Significant Investments
Bin Dmeithan remarked, “Dubai’s achievements, as well as those of the UAE, are the result of significant investment in the logistics sector as part of a broader strategy aimed at diversifying the economy away from oil dependency.” He noted that the value of the shipping and logistics market in the UAE is projected to reach about $20 billion in 2024, with expectations of growth to $28 billion by 2029.
Furthermore, he mentioned that Dubai’s investments in infrastructure, including the Dubai Logistics Corridor linking Jebel Ali Port with Al Maktoum International Airport, have reduced transportation times from sea to air from four hours to under one hour, quadrupling the city’s logistics efficiency and confirming its strategic position as a link between the East and West.
With ambitious plans to launch over 400 new trade routes to cities in Africa, Latin America, and Southeast Asia, the opportunities ahead appear exceptionally promising for enhancing Dubai’s trade influence.
Bin Dmeithan anticipates a surge in growth, particularly with the formation of the UAE Logistics Integration Council and recent initiatives aimed at elevating the logistics sector’s annual value to 200 billion dirhams (approximately $54.45 billion) over the next seven years.
Regarding how the private sector can seize available opportunities to establish rapid-response supply chains, he pointed out that in the past year, the hybrid connection model between sea and air freight has emerged as a genuine lifeline for companies. He cited DB World’s experience during the disruptions in the Red Sea, successfully redirecting over 2,000 metric tons of goods from Asia to Europe for a major European fashion brand, in addition to shipping medicines and ready-made garments from Pakistan and India to the United States.
He emphasized that this integrated solution, combining maritime and air services, significantly reduced transit times and emissions, making the flexibility of a multimodal approach a critical competitive edge in supply chain management.
With the continued expansion of this multimodal infrastructure, the role of external logistics providers will only grow in ensuring the flow of trade and building resilient supply chains.
The port-centric logistics model, which connects storage, distribution, and value-added services within port facilities, will play a pivotal role in enabling companies to navigate border complexities.
He added, “With the upcoming launch of the Union Railway project, there is immense potential for rail networks to bolster regional trade and enhance resilience.”
For instance, DP World launched the “Saral” service in India in 2023, offering sustainable and flexible logistics solutions reliant on rail, connecting western India to northern markets.
This network includes approximately 65 trains, 14,000 containers, and seven dedicated rail-linked loading stations, creating an on-demand multimodal transport network that enhances cargo movement efficiency.
Last year, this service expanded to include a new route connecting northern and southern India with daily trains capable of transferring 500 standard containers weekly.
Implementing a similar model in the region could unlock new possibilities for strengthened readiness and infrastructure integration, boosting trade among Gulf Cooperation Council countries.
He pointed out that the biggest challenge in multimodal logistics remains the lack of real-time tracking across different shipping modes.
Information regarding shipments is often spread across various platforms, forcing companies to navigate multiple systems to track the movement of goods.
Our logistics platforms aim to bridge this gap by providing real-time visibility of multimodal shipments from their starting point to final destination, ensuring seamless integration between maritime and air shipping routes via Jebel Ali Port and Dubai airports, thus reducing delays and equipping stakeholders with the necessary information to quickly adapt to changes.
He concluded, “In light of the accelerating climate change and increasing geopolitical uncertainties, the future of global trade lies in redefining supply chains. Innovation, flexibility, and sustainability must be the core of this transformation for Dubai to continue its journey toward establishing the foundations for sustainable growth in its trade and logistics sector.”