{"id":70461,"date":"2023-05-02T00:00:00","date_gmt":"2023-05-02T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2023\/05\/02\/gcc-countries-climb-up-rankings-in-the-world-banks-lpi-while-low-income-mena-countries-trail-behind\/"},"modified":"2023-05-02T00:00:00","modified_gmt":"2023-05-02T00:00:00","slug":"gcc-countries-climb-up-rankings-in-the-world-banks-lpi-while-low-income-mena-countries-trail-behind","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2023\/05\/02\/gcc-countries-climb-up-rankings-in-the-world-banks-lpi-while-low-income-mena-countries-trail-behind\/","title":{"rendered":"GCC countries climb up rankings in the World Bank\u2019s LPI, while low-income MENA countries trail behind"},"content":{"rendered":"

<\/span>Major gaps in overall logistical performance persist in the MENA region<\/span>, <\/span>with GCC <\/span>countries leading the pack in the World Bank\u2019s latest <\/span>Logistics Performance Index (LPI) (pdf)<\/a><\/span>, a <\/span>survey-based ranking of 139 countries. Lower-income MENA countries continued to trail behind in the rankings due to a combination of structural inefficiencies, lower quality of infrastructure and port delays, according to the index. <\/span><\/p>\n

How the LPI works:<\/span> The ranking is based on a survey of some 652 logistics professionals across 115 countries. They were asked to assess ease of trade with partner countries on a five-point scale \u2014 with five denoting \u201ceasiest\u201d and one denoting \u201chardest.\u201d The scale assesses logistics-related policies and performance, including efficiency of clearances at customs and borders, quality of logistics infrastructure, ease of arranging cost-effective international shipments, quality of logistics services, shipment tracking, and timeliness of shipment delivery<\/span>. The ranking groups countries together if they share the same overall LPI score, regardless of their individual scores in each of the categories.<\/span><\/p>\n

GCC countries consolidated their positions as leading logistics hubs, <\/span>with most countries climbing in the ranking.<\/span>The UAE climbed four spots from the previous ranking in <\/span>2018 (pdf)<\/a><\/span> to rank seventh globally, with a score of 4, making it the only country in the MENA region to feature in the world\u2019s top 10 logistics performers. Saudi Arabia rocketed 17 places <\/span>to settle at 38th<\/span> worldwide, with a score of 3.4. The meteoric rise largely vindicates the National Transport and Logistics Strategy launched two years ago, a Saudi Transport Ministry <\/span>statement<\/a><\/span> said<\/span>. Qatar bumped down four places to tie with Bahrain \u2014 which jumped up 25 places \u2014 at 34th, with both earning a score of 3.5. Bahrain\u2019s improvement in its timeliness score, which came in at 4.1, compared to 3.29 in 2018. Meanwhile, Oman retained its previous ranking at 43rd, though its overall score rose 0.1 points to 3.3. <\/span><\/p>\n

Israel and Turkey also fared well: <\/span>Israel\u2019s ranking went up 11 spots to land at 26th worldwide, with a score of 3.6, placing it as the second-highest scorer in MENA after the UAE. Turkey climbed nine places to tie with Saudi Arabia at 38th, both holding a score of 3.5. <\/span><\/p>\n

Also doing well: <\/span>Kuwait climbed 12 places to settle at 51st, with a score of 3.2, making it the lowest performer in the GCC but still placing it in the world\u2019s top half performers. Egypt also climbed 10 places to settle at 57th worldwide, with a score of 3.1, also placing it in the world\u2019s top half. <\/span><\/p>\n

Most<\/span>MENA countries continued to trail at the bottom of the global ranking<\/span>, <\/span>despite improvements in some of their standings. Algeria jumped 20 spots to settle at 97th globally, with a relatively low score of 2.5. Iraq showed more considerable improvement, rising 32 positions to settle at 115th globally with a score of 2.4 \u2014 the same score given to Sudan, which fell six places. Syria also rose 15 spots to settle at 123rd, with a score of 2.3. Yemen rose eight places from the previous ranking to settle at 132nd, with a score of 2.2. Libya also rose 16 spots but came in at 138th, tying with Afghanistan as the lowest scorers, with a score of 1.9. Though these countries\u2019 rankings improved, the report cautions that some of the improvements are due to the fact that this year\u2019s report only ranks 139 countries compared to 160 in 2018.<\/span><\/p>\n

Also not doing particularly well: Iran, which plummeted 59 places<\/span>, ranking 123rd with a score of 2.3.<\/span> Iran\u2019s freefall is likely due to restrictions on trade on the back of US sanctions, which came into place \u2014 again, after a three-year long hiatus \u2014 <\/span>in 2018<\/a><\/span>. The US\u2019 sanctions regime not only restricts Iran\u2019s trade with US-based companies but also <\/span>punishes<\/a><\/span> foreign companies trying to work with Iran, which effectively isolates it from global supply chains and can account for why survey respondents believe that it is now much more difficult to get goods in and out of the country. <\/span><\/p>\n

Structural inefficiencies are behind MENA countries\u2019 performance lag:<\/span> MENA and sub-saharan Africa are prone to chronic delays at ports of entry<\/span>, <\/span>according to tracking figures cited in the report. Lebanon, Sudan, Egypt, Syria, Tunisia, and Algeria featured in the list of 14 worst-performers in terms of dwell times at ports, with Tunisia and Algeria bottoming out the list. Sudan, Egypt, and Algeria also featured in the list of 11 worst-performers in terms of airport dwell time, with Algeria again sitting at the tail end of the list. The report notes that the causes of the delays were not consistent between countries and were more case-by-case, with Algeria\u2019s delays attributable to holdups at banks and Tunisia\u2019s due to poor container handling. These delays are indicative of \u201cserious structural issues with logistics performance,\u201d the report says, adding that these shortcomings should be a focal point for policy reforms.<\/span><\/p>\n

What needs to be done?<\/span> \u201c<\/span>Improving customs and infrastructure matters most for raising the overall score of bottom performers,\u201d the report says in its policy highlights. \u201cThe performance of customs and border agencies, as well as the quality of trade- and transport-related infrastructure, is particularly weak in the lowest performing countries,\u201d it adds, noting that many of these countries are in the MENA region.<\/span><\/p>\n

What did the report say about the rest of the world? <\/span>LPI scores in 2023 have changed little from the latest index, with only the timeliness component showing a steady \u2014 albeit slight \u2014 deterioration, the report noted. This shows that supply chains have exhibited unexpected resilience in the face of recent logistical challenges, the report concluded. The list of top performers continues to be dominated by high income economies with some shake ups in the cr\u00e8me de la cr\u00e8me; Singapore, Finland, and Denmark outplaced Germany, Netherlands and Sweden which had previously occupied 2018\u2019s top three rankings. <\/span><\/p>\n

The gap between high-performing + low-performing countries is growing \u2014 which is why reforms are needed: <\/span>Although global logistical performance has improved overall, the gap between high-performing and low-performing countries remains substantial in the latest ranking, the report said. Low-performing countries need to implement substantial reforms and investments to improve logistical infrastructure and policies and bridge that gap, the report notes. <\/span><\/p>\n

Digitization + green logistics are on the rise: <\/span>S<\/span>upply chain digitization has helped cut back on port delays in emerging countries by 70% in comparison with more developed countries, according to a <\/span>press release summary<\/a><\/span> attached to the report. The summary also notes rising demand for green logistics, with some 75% of shippers actively on the lookout for climate-friendly shipping options, especially when shipping to high-income countries, as more high-income countries <\/span>pursue ambitious greenhouse gas emission targets. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The UAE was the only country from the region to make it to the top 10 in the index<\/p>\n","protected":false},"author":1,"featured_media":70462,"comment_status":"","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[302],"tags":[],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-70461","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-big-read","wpautop","entry"],"acf":{"mongo_id":"bc0b5401-c4ed-47cd-97e4-e88b597f26ee","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2023\/4\/940.jpg","photo_position":"above","homepage_title":"","full_issue_title":"GCC 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