Suhail Al Mazrouei: Our Goal is to Increase the Logistics Sector’s Contribution to the National Economy to Over 200 Billion Dirhams

His Excellency Suhail Mohamed Faris Al Mazrouei, Minister of Energy and Infrastructure and Chairman of the UAE Logistics Integration Council, stated that the council aims to increase the logistics sector’s contribution to the national economy from approximately AED 136.7 billion in 2024 to over AED 200 billion within the next seven years.

During the council’s inaugural meeting, held at the ministry’s headquarters in Dubai, he explained that these targets align with the “We are the UAE 2031” vision, which aspires to position the nation among the top three globally in the logistics performance index. This will be achieved through the development of advanced infrastructure, the provision of smart services, and the adoption of integrated systems that enhance global trade while keeping pace with the latest supply chain developments.

He pointed out that the Logistics Integration Council would implement significant initiatives to promote digital and green transformation within the transportation and logistics sector by expanding smart solutions, reducing carbon emissions, and achieving a balance between economic growth and environmental protection, reflecting the UAE’s commitment to sustainable development.

The council will serve as a platform for collaboration and knowledge exchange among all parties involved in the logistics sector at both federal and local levels. He emphasized that the UAE’s strategic location, combined with its advanced logistics infrastructure, positions it to remain a major global hub for trade, re-exporting, and logistics services.

He reinforced that the cooperation and coordination between federal, local entities, and the private sector are fundamental to achieving the council’s objectives, fostering a more efficient and sustainable logistics sector in line with the UAE’s ambitions for the next fifty years and enhancing its competitive edge globally.

He noted that the logistics sector is one of the pillars of the national economy, effectively contributing to the GDP and providing thousands of quality job opportunities. Additionally, it plays a key role in attracting foreign investments and enhancing the country’s appeal as a developed and reliable business environment, solidifying the UAE’s position as a global center for trade and re-exportation and supporting vital sectors.

In 2023, the UAE achieved a significant milestone by ranking seventh globally, which reflects the vast investments made in advanced infrastructure development, as well as modern road networks and the adoption of the latest global technologies and practices. These accomplishments confirm that the UAE’s logistics sector is a key driver of economic growth and a central factor in enhancing the nation’s regional and global competitiveness.

His Excellency stated that the logistics sector is continuously evolving towards greater efficiency and sustainability. He explained that through integration and collaboration, it is possible to enhance the sector’s level, increase efficiency, reduce costs, and provide a better experience for stakeholders.

The UAE Logistics Integration Council comprises all relevant parties in the logistics sector at both federal and local levels, including ports, roads, transportation, customs, railways, and other entities. It aims to coordinate policies and strategies, simplify procedures, and develop quality services that enhance the flow of goods and support national competitiveness.

The establishment of the council is part of national efforts to unify visions and coordinate roles among various stakeholders to enhance sector efficiency and reinforce the UAE’s position as a pivotal link in the global trade system.

During the first meeting, the council discussed several key areas related to logistics integration within the UAE, focusing on strengthening the interconnectivity of different transportation modes and adapting to the shift towards digital and intelligent solutions that support national strategies. This aligns with a comprehensive vision to develop an integrated logistics sector capable of meeting the demands of rapid economic growth and establishing the nation as a global center for trade, re-exportation, and logistics services.

The meeting also covered the development and approval of the national logistics integration strategy, in addition to digital platforms and other related issues. It was agreed to form sub-teams associated with the council to follow up on recommendations and implement mandates in this regard, along with a focus on eliminating bureaucracy in logistics sectors, particularly in maritime transport, as a model for simplifying processes and achieving significant improvements in government service efficiency in line with the nation’s commitment to establishing a world-class governmental system that delivers more efficient, quality, and effective services, thereby enhancing the country’s competitiveness both regionally and internationally.

The council addressed the National Marine Navigation Center as a representation of the UAE’s strategic vision for building a comprehensive marine system that supports national initiatives towards sustainability and innovation, solidifying the nation’s position as a leading global maritime power.

The center is an important addition to the ongoing development of marine infrastructure. It will manage and operate the national integrated vessel movement monitoring system and the unified national marine window aimed at standardizing processes and enhancing maritime operational efficiency to bolster the UAE’s role as a key hub for trade and maritime services.

The center serves as a vital foundation for achieving several strategic goals, including enhancing maritime security and safety, facilitating trade movements, and providing real-time, reliable information to support decision-making. It delivers key benefits, such as strengthening national security, aiding response and institutional integration plans, and ensuring accurate and timely data. Furthermore, it enhances research and investigation capabilities, guarantees operational excellence and maritime safety, and strengthens the UAE’s reputation as a global maritime power, while also protecting the environment and promoting sustainability principles.

The council’s first meeting also explored ways to enhance partnerships with the private sector as a key ally in development and growth. This collaboration will help solidify the UAE’s status as a favored destination for global investments in this vital sector. The meeting featured a presentation from the General Civil Aviation Authority, discussing a specialized study on air freight and its strategic dimensions, as well as its role in supporting economic growth and enhancing the nation’s global competitiveness.

The meeting was attended by members of the UAE Logistics Integration Council, including Abdallah Ahmed Al-Saleh, Undersecretary of the Ministry of Economy; Ahmed Abdullah bin Lahij Al-Falasi, Acting Director General of Customs and Ports Security; Engineer Youssef Khamis Al-Othmani, Chairman of Sharjah Roads and Transport Authority; Sheikh Sultan bin Mohammed Al-Nuaimi, Director General of Ajman Port and Customs; Sheikh Mansour Ibrahim Al-Malla, Director General of the Ports, Customs and Free Zone Authority in Umm Al-Quwain; Mohammed Saif Al-Afkhim, Director General of Fujairah Municipality; Dr. Salem Khalfan Salem Al-Kaabi, General Director of Operations at the Department of Municipalities and Transport in Abu Dhabi; Ahmed Mahboob, Executive Director of the Licensing Authority at the Roads and Transport Authority in Dubai; Engineer Youssef Hashem Al-Aziz, Assistant Director General for Strategic Affairs and International – General Civil Aviation Authority; Omar Al-Subaie, Vice President of the Union Railways for Freight; and Engineer Ismail Hassan Al-Balooshi, Director General of the Ras Al Khaimah Transport Authority.

Business

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