{"id":662202,"date":"2025-03-12T00:00:00","date_gmt":"2025-03-12T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/hardhats\/egypt-falls-behind-in-global-logistics-ranking-while-gulf-nations-climb\/"},"modified":"2025-03-12T00:00:00","modified_gmt":"2025-03-12T00:00:00","slug":"egypt-falls-behind-in-global-logistics-ranking-while-gulf-nations-climb","status":"publish","type":"hardhat","link":"https:\/\/enterpriseam.com\/egypt\/hardhats\/egypt-falls-behind-in-global-logistics-ranking-while-gulf-nations-climb\/","title":{"rendered":"Egypt falls behind in global logistics ranking while Gulf nations climb"},"content":{"rendered":"

Egypt\u2019s<\/strong> logistics sector drops in global ranking: <\/strong>Egypt slid four spots to rank 24th in Agility\u2019s 2025 Emerging Markets Logistics Index (pdf)<\/a>, which ranks the world\u2019s top 50 emerging markets by assessing their logistics infrastructure, business environment, and digital capabilities. The country was outpaced by peers in the GCC, including the UAE, which sustained its spot as the third most attractive market for the second year in a row, and Saudi Arabia, which came in fourth after moving up two places.<\/p>\n

(Tap or click the headline above to read this story with all of the links <\/strong>to our background as well as external sources.)<\/p>\n

How is this performance measured? <\/strong>The index, which surveyed 567 logistics and supply chain executives, factors in four main indicators \u2014 domestic and international logistics prospects, business fundamentals, and digital readiness. Here is the rundown on how Egypt fared across these sub-indices and how it measured up to the top GCC performers.<\/p>\n

#1- Egypt dropped seven spots on the domestic potential sub-index to land in 20th place<\/strong> amid economic headwinds and sluggish domestic activity. Meanwhile, Saudi Arabia climbed to fourth place, supported by a resilient oil and gas industry and strong GDP per capita, and the UAE retained fifth place. The two countries also benefited from urbanization and industrial clustering.<\/p>\n

#2- Our international logistics potential strengthened, climbing five ranks to 18th place. <\/strong>This indicates that Egypt continues to have strong potential in global trade and connectivity. Other nations also stepped up; KSA and the UAE each climbed one spot to fifth and sixth places, respectively, helped by the growth and sea freight market and higher volumes of exports and imports that require advanced logistics services, among other drivers.<\/p>\n

#3- Egypt\u2019s business fundamentals ranking fell seven places to 23rd. <\/strong>The drop came on the back of inflation coupled with political unrest and economic instability, which made the country less attractive to investors compared to business-friendly GCC markets. The UAE holds the top spot in this category while KSA ranks third \u2014 positions supported by effective inflation control, debt management, access to credit, anti-corruption measures, and law enforcement.<\/p>\n

#4- Egypt moved up seven spots to rank 30th in digital readiness<\/strong>, a sub-index that assesses performance in digitalization and the adoption of green technologies. The UAE remained in second place while Saudi Arabia climbed one spot to fifth place. The two countries were helped by reduced greenhouse gas emissions, e-commerce sales, access to mobile broadband services, and digital inclusion, among other factors.<\/p>\n

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KEY TRENDS ACROSS THE GCC-<\/p>\n

UAE + KSA leading the way in economic diversification:<\/strong> Some 28.8% of the respondents said the UAE observed the highest level of progress in diversifying over the past decade, while about 26% said the KSA had seen the most progress. The UAE\u2019s non-oil economy accounted for 80% of the nation\u2019s GDP in 2024, whereas KSA saw its non-oil activity rise 4.6% y-o-y the same year, Reuters<\/a> reports.<\/p>\n

UAE is developing its digital infrastructure<\/strong> by investing in late-stage startups in Abu Dhabi and cutting e-commerce operational costs \u2014 including storage, customs, and transportation costs \u2014 by 20%. That said, the UAE will have to balance its relationships with the US and China over the use of advanced technologies in the year ahead, Agility says.<\/p>\n

And KSA is targeting logistics and warehousing:<\/strong> The Kingdom plans to develop 59 logistics centers across the nation, which are slated to boost access to key transportation and sea freight facilities, says Agility. This includes plans that are underway for a new link between Saudi and Bahrain, dubbed the King Hamad Causeway, and a USD 266 mn Logistics Park in Dammam.<\/p>\n

The GCC benefited from freight shifts amid Red Sea disruptions: <\/strong>Ports in the Gulf were \u201ckey beneficiaries\u201d of a trend that saw two-thirds of shipping companies shift away from sea freight services amid trade disruptions in the Red Sea. Some 17.2% of these shippers made a switch to air freight \u2014 the most popular alternative. Multi-modal solutions, like air\/sea and sea\/land combinations, account for nearly 20% of shipments in aggregate.<\/p>\n

Optimism is high for the GCC: <\/strong>The region \u201cstands out as a beacon of stability\u201d amid geopolitical turmoil in the region, Agility says. A myriad of events this year \u2014 the fall of the Assad regime in Syria, the ongoing disruption to traffic in the Red Sea, and Israel\u2019s attacks on Gaza and Lebanon \u2014 have provided \u201ceconomic headwinds\u201d yet have not obstructed the region\u2019s development trajectory. Economic growth is projected to rise in the short to medium term, with the World Bank economists forecasting a 4.2% growth in FY 2025\/26, says the report.<\/p>\n

Despite the GCC optimism, the majority of respondents \u2014 around 54% \u2014 forecast a <\/strong>global recession to hit in 2025<\/strong>, up by 4% from last year\u2019s report and driven by global headwinds including \"uncertainties, geopolitical tensions and upheaval in major economies.\u201d<\/p>\n

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