(MENAFN- The Peninsula)
The Peninsula
Doha: The logistics sector in Qatar is rapidly expanding and poised for further growth driven by significant investments in infrastructure.
Qatar has been actively investing in developing its logistics sector to position itself as a global logistics hub. The country's strategic location, state-of-the-art infrastructure and efforts to diversify its Economy contribute to the growth of the logistics market, noted a recent report by Invest Qatar which highlighted the recent trends in the global logistics market and explored its potential for future growth.
The rapid growth of the country's logistics sector has been significantly boosted by substantial investments in technology and communication. Furthermore, this growth is further accelerated by extensive trade and investment networks Qatar is a member of the World Trade Organization (WTO), a member of the GCC Customs Union and a signatory of the Pan-Arab Free Trade Area (PAFTA).
Qatar has established 68 bilateral investment treaties (BITs), 28 bilateral agreements on customs cooperation and 80+ double taxation agreements with major economies to ease trade and investment activities.
As a result, the logistics sector has emerged as one of Qatar's fastest-growing industries, experiencing a remarkable growth rate of 26 percent in 2022. Building on years of investment and strategic planning, the country's excellent logistics and supply chain networks serve as a reference case for how to enhance and navigate global supply chain and logistics disruptions.
The country has established itself as a global leader in logistics and supply chain due to its strategic location -situated at the crossroads of Asia, Europe and Africa-world-class infrastructure and advanced facilities. Qatar's free zones and logistics parks, along with advancements in ICT, contribute to a robust and efficient logistics and supply chain network, making it a vital hub connecting major global markets, the report further said.
The logistics sector serves as the foundation of global trade and is poised for continuous growth. The logistics market encompasses various transportation modes, such as airways, waterways, railways and roadways. Additionally, it includes a spectrum of logistics services, comprising inbound and outbound transportation management, warehousing and various auxiliary support services.
The expansion of the e-commerce sector has been a significant driver in propelling the growth of the logistics sector, with e-commerce in the GCC achieving a value of $23.8bn in 2022.
The logistics market in the GCC is anticipated to demonstrate sustained growth with Qatar, KSA and the UAE leading the way. The GCC region continues to invest in various projects such as airports, seaports, railways, roads, energy infrastructure (including renewables) and ICT.
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