Saudi Arabia climbed to number two, behind China, while Gulf states the UAE, Qatar and Oman ranked top for “market compatibility” on this year’s Agility Logistics Index.
The annual data-driven ranking of 45 emerging economies, found that the UAE led in connectivity, ranking ahead of Malaysia, China, Oman and Saudi Arabia in infrastructure and transport links.
In the overall index, Kuwait slipped three spots to 21, amid need for infrastructure investment and economic reform and Bahrain fell two places to 24, still dealing with the aftermath of sectarian tension, according to Agility.
“Infrastructure investment and structural reforms that improve the climate for businesses have positioned Saudi Arabia, the UAE, Qatar and Oman to weather the downturn in energy prices,” said Elias Monem, CEO Middle East and Africa for Agility Global Integrated Logistics. “They continue to pursue smart policies that will help them diversify and make them more inviting to the logistics industry as consumer markets and logistics hubs providing high-value supply chain services.”
Other declines were seen in Jordan, which dropped five spots to 29, and Lebanon, which fell two spots to 42, due to the Syrian conflict.
In North Africa, Algeria jumped three spots to 34, while Egypt dropped from 28 to 32, despite signs the government was halting its economic decline.
The Index ranks emerging markets based on their size, business conditions, infrastructure and factors that make them attractive for investment for logistics companies.