9 hours ago
From ports to policies: How Dubai is rewiring the future of trade
In the rapidly transforming landscape of global trade and commerce, Dubai has positioned itself as a world-class logistics and supply chain hub. According to Abdulla Al Hashmi, CEO of Parks and Zones at DP World GCC, 'Dubai is the best place to launch and test a product. Its diverse base of over 200 nationalities provides a large, dynamic sample pool to test innovations, and its cutting-edge infrastructure allows businesses to scale globally.'
Rishab Kapoor, Founder of Ray Holding, a comprehensive next-gen aviation company, echoes this, noting, 'Dubai's ecosystem offers more than just a strategic location. Its infrastructure, policy framework, and geopolitical positioning have made it a magnet for global enterprises. At the core of this ecosystem lies the triad of sea, air, and land infrastructure, connecting seamlessly to form the Dubai Logistics Corridor. Hashmi highlights this potential further: 'With Jebel Ali Port, Al Maktoum International Airport, and a growing network of roads, bonded customs corridors, and industrial zones, Dubai offers direct access to over 300 cities worldwide, 65% of global gross domestic product (GDP) and 3.5 billion consumers.'
A world-class logistics hub
Dubai's prowess is also backed by global metrics. According to the 2023 World Bank Logistics Performance Index, the United Arab Emirates (UAE) ranks seventh globally with a score of 4.0, reaffirming its position as a world-class logistics hub—driven by Dubai's streamlined processes, high service quality, and efficient customs operations.
Three core pillars are fuelling Dubai's rise as a global logistics hub:
Live Events
1. Strategic location and world-class infrastructure:
Dubai's position at the crossroads of Asia, Europe, and Africa gives it a location advantage. The Jebel Ali Port, one of the world's top 10 busiest ports, Al Maktoum International Airport, and Dubai South—a next-generation aerotropolis—provide seamless integration between sea, air, and land transport.
Then there are special economic zones (SEZs) and Parks, which create opportunities for ancillary businesses (warehousing, fulfilment centres), marketplaces, and commercial activities. Talking about DP World, Hashmi states that between six special economic zones, including Jebel Ali Free Zone (JAFZA), National Industries Park, Dubai Auto Market, Maritime City, and others, substantial trading and manufacturing value addition takes place. This is reflected in the numbers: In 2019, Jebel Ali clients generated a trade value of $99 billion, which increased to USD 190 billion in 2024.
DP World is now the world's largest vehicle handler and supports sectors, including commodities trading and industrial manufacturing. Global companies, such as Eaton (US), A-Heat (Germany), and Global Surfaces (India), have already established precision manufacturing facilities in Dubai's free zones.
2. Policy innovation and digital transformation:
The Dubai Economic Agenda is at the centre of Dubai's non-oil diversification strategy and includes a strong focus on logistics, with the Land Transport Strategy aiming to double the sector's direct contribution to AED 16.8 billion by 2030. According to Hashmi, the initiative also includes an incentive package aimed at doubling the manufacturing value added and bilateral trade over the next 10 years.
A major driver of this expansion will be technological adoption, with Kapoor and Hashmi identifying automation, artificial intelligence (AI), blockchain, and green initiatives as game changers. Hashmi notes that 'DP World is no longer just a port operator, but a multi-modal infrastructure provider,' citing advances such as AI forecasting and blockchain-based contracts. Kapoor highlights DHL's Dubai South Innovation Centre, drone delivery trials, and real-time e-commerce tracking as evidence of digital tools reshaping regional logistics.
Sustainability is another cornerstone of Dubai's transformation. As per Hashmi, JAFZA has the Middle East's largest solar rooftop programme. In addition, all power needs of DP World are met from the Al Maktoum solar park. Green warehouses, solar-powered logistics facilities, and blockchain use cases that reduce paperwork and waste are becoming the new normal. These innovations are likely to attract companies looking to align with environmental, social, and governance (ESG) goals while optimising operations.
ET Spotlight
3. Geopolitical heft and expanding trade agreements:
Dubai's influence extends beyond its infrastructure, bolstered by the UAE's growing geopolitical clout through trade agreements, such as the Comprehensive Economic Partnership Agreement (CEPA), which spans Asia, Europe, and Africa. Hashmi notes, 'CEPA creates more affordable trade corridors by eliminating customs duties.' Jean Shahdadpuri, CEO of Nikai Group, highlights the impact of the UAE's first-ever CEPA with India, with a 15% compound annual growth rate (CAGR) and bilateral trade reaching $83.7 billion.
Beyond trade deals, DP World's strategic acquisitions and partnerships—such as those in Turkey, India, the GCC, and Africa—are also creating new interdependencies and allowing companies to 'build in Dubai for the region.'
Dubai South: A future-ready ecosystem
According to Kapoor, 'Ray chose Dubai to be its central hub despite the varied choices, because Dubai's planned aerotropolis supercharges the company's plans. From the Al-Maktoum airport to Aviation and Logistics District, to commitments by major Aviation players for MRO and R&D services, the company can access all facilities for its luxury jets, specialised cargo operations and commercial airline. With its cargo-first design, scalable warehousing, and proximity to both sea and air gateways, Dubai South is expected to anchor the next phase of supply chain evolution in the region.'
Opportunities for Indian businesses
India stands to benefit significantly from Dubai's logistics boom. Saurabh Goyal, CEO of Xindus, a cross-border trade and commerce enabler, highlights a three-pronged strategy for Indian companies.
With reduced tariffs and faster customs clearances, Dubai enables Indian companies to utilise it as a staging ground for reaching Africa and Europe. From pharmaceuticals to textiles, Indian goods can be shipped in bulk, stored in bonded warehouses, and redistributed as per demand.
Additionally, Dubai's consumer base, combined with its role as the commercial capital of the GCC, presents a lucrative local market. With over 200 nationalities and high per capita spending, it is a testbed for consumer products, agri-tech solutions, and digital services.
Hashmi highlights the government incentives and subsidies to attract Indian companies to free zones. According to him, 25% of companies in JAFZA are of Indian origin, and initiatives such as Bharat Mart are increasingly engaging in the UAE-India business and trade corridor. Bharat Mart is a first-of-its-kind wholesale and retail marketplace being developed within DP World's ecosystem. It will enable Indian businesses to leverage Dubai's world-class infrastructure to access free zones, the mainland, and regional markets through integrated storage, warehousing, transport, and customs facilitation. Expected to be operational by end-2026, Bharat Mart will offer end-to-end trade support, including distribution networks and streamlined export services for Indian companies.
Another opportunity area for Indian companies is light assembly, precision manufacturing, and packaging within Dubai's free zones. Moreover, Dubai's strong financial sector can provide services such as supply chain financing, risk underwriting, and blockchain-enabled transparency.
As the world grapples with supply chain disruptions, inflation, and geopolitical uncertainty, Dubai's bet on infrastructure, digital innovation, and openness seems to be paying off. With its stable governance, business-friendly policies, and tax incentives, its ports, airports and free zones are increasingly attracting commodity-specific marketplaces, agri-tech businesses, and precision manufacturing startups.
This article is contributed by Shraddha Bhandari.
Click this
link
for more on Business in Dubai.
Disclaimer - This article is a part of a featured content series on Business in Dubai.
