Where There’s Connection, there’s Creation: Dubai’s World-class Logistics are Helping to Transform Global Trade

By Falcon And Associates Fz-llc, PRNE
Tuesday, October 11, 2011

DUBAI, UAE, October 12, 2011 -

Two-thirds of the world’s population lives within an eight hour flight of Dubai. One third is within just 4 hours’ reach. With such clear geographical advantages, Dubai’s success as a freight and passenger hub is perhaps no great surprise.

Last year, 50 million people moved through Dubai International Airport. When completed, the new Al Maktoum International Airport, already receiving cargo flights, will have a capacity of 120 million passengers a year.

But Dubai does not just have airports - it is an Aerotropolis. Dr. John D. Kasarda, the academic and futurologist who coined the term, says that great air travel hubs like Dubai will be at the heart of globalization’s next phase. These mega-hubs, rather than simply serving local economies, can transform them. According to Kasarda, air transport connectivity has a major impact on international trade.

The real connectivity story takes place at Dubai Logistics City. This huge development brings together the new mega-airport and cargo hub with logistics, warehousing facilities, and aviation services. It will be the world’s largest air-freight facility, capable of handling 12 million tons of freight each year.

The advantages of Dubai’s connectivity extend from air to land and sea. Dubai Logistics City, housing over 6,400 companies, is part of the Emirate’s free trade area and linked to Jebel Ali Port. Cargo can move between airport and seaport in under an hour, and from there to the world beyond. Many call this the world’s first truly integrated logistics platform.

But what effect does this connectivity have on the local economy? A powerful one, according to UK-based consultancy Oxford Economics. It estimates Dubai’s aviation sector contributes 125,000 jobs and $11.7 billion in gross domestic product, more than 14 percent of the total.

The study also indicates how Dubai’s aviation sector benefits other markets. For example, India gains nearly $612 million from Dubai’s connectivity. China gains $1.4 billion and is accelerating along Dubai’s multimillion dollar trading highway. Today there are more than 2,000 Chinese companies registered in Dubai, up from 18 in 2005.

In June, the Dubai International Financial Center, the emirate’s financial and business gateway, announced a tie-up with the Chengdu Financial City Investment and Development Corporation, supporting relations between the two global economic hubs.

Dubai offers many advantages to Chinese businesses. The Middle East is the natural springboard for Chinese companies wanting to enter Africa. Of China’s trade with Africa, 35 per cent goes to North Africa. Dubai’s preeminence as a logistics hub and its favourable business conditions make it the automatic choice for many companies establishing regional headquarters.

With goods, capital, and ideas flowing ever more strongly from China and India to the Middle East, Europe, Africa and beyond, Dubai is now an integral point of connection on what could well become known as the New Silk Road.

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Nicky Hawes T: +971-4383-3500

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