The Middle East’s trade corridor routes will see an increase in activity in 2014, particularly on its connections with Africa.
That’s the foresight of Hussein Hachem, CEO of Aramex, who says the continent’s growing economy is vital to its trade corridors with the Middle East expanding with the logistics industry most likely to benefit.
“We believe the global economic environment will continue to slowly ameliorate through 2014 and we are broadly predicting a commensurate increase in trade corridor growth – particularly across the Middle East and Africa – which will help support the further development of the vitally important logistics sector,” said Hachem.
“Africa is the second fastest growing region in the world, with favourable demographics (half the population is under the age of 20) and annual GDP growth that is expected to average seven per cent over the next 20 years. As African economies have grown, Africa-Middle East trade corridors have expanded.
“We believe it is Africa – and Africa’s growing trade corridors with the Middle East– that could prove most influential for the logistics industry this year.”
Hachem, who was speaking exclusively to Gulf Business in his 2014 power letter, believes the continued growth of the import-export relationship between Africa and the Middle East will provide a big boost for the logistics sector.
“According to the World Trade Organisation (WTO), African merchandise exports to the Middle East exceeded $21 billion in 2011, up from $19 billion in 2010; with Middle East merchandise exports to Africa exceeding $38 billion, up an impressive $10 billion over the previous year,” he said.
“This exciting trend is set to continue, in line with sustained African economic growth, the expansion of its export industries and increased domestic appetite for imported goods. The further strengthening of this trade corridor should result in a significant fillip for the logistics sector.
The Gulf Business January edition including the 2014 Power Letters is now available.