(MENAFN- The Peninsula) lalin fernandopulle |
The Peninsula
Qatar's logistics market is forecast to grow at the fastest rate in the GCC region at a CAGR of 6.2 percent between 2020 and 2026, a report by Invest Qatar stated.
According to the report among the markets the KSA is slated to record 5.8 percent, Kuwait, Oman and Bahrian at 4.5 percent and UAE is expected to grow at 2.4 percent in the regions logistics market.
Qatar expects further growth in its warehousing, exports and logistics market with untapped potential for foreign investors.
Amidst the pandemic Qatar logistics and warehousing recorded a revenue of $22,462m and notched a 7 percent growth in the past five years.
Qatar's logistics and warehousing market is driven by improved infrastructure, increased industrial activity and growth in e-commerce.
Qatar has one of the most advanced logistics infrastructure in the GCC region and globally to support its trading activities.
The state accounts for the top 20 percent in logistics performance globally and the second in the GCC region.
The report states that six trends shaping the transportation and logistics market in the GCC such as rising demand for perishable products, free trade and special economic zones, friendly government regulations prevalence of third party logistics, changes in consumer preferences and digitalisation.
Global supply chains, warehousing and logistics are currently undergoing major transformation, creating a wealth of opportunities.
Connectivity, logistics infrastructure, trade activity and business environment of Qatar make it an attractive trading hub, it noted.
The state has a unique positioning and connectivity with a strategic geographic location, population of close to 3 million people and $6 trillion in GDP within 3,000 km from Qatar.
It is connected to more than 140 international destinations through Qatar Airways and 15+ direct shipping lanes through Hamad Port. The 8th globally in ICT infrastructure (incl.leadership in 5G and telecom), which together make the sate an attractive trading hub in the globe.
State-of-the-art logistics infrastructure, a leading airport and best airline globally with Hamad Port as one of the largest green ports, second in the Middle East for logistics performance (among 20 percent globally), well developed warehousing facilities, capabilities and logistical services, especially in industrial free zones also positions the state high in the logistics market.
The global logistics market in 2021 accounted for $9.5 trillion and is projected grow at 7.2 percent CAGR between 2022-2030 and 75 percent commercial supply chain advanced technology adoption rate by 2026 and $57.1bn in total FDI in the logistics, distribution and transportation sector in 2021. The demand for last-mile delivery is expected to grow 78 percent globally by 2030.