This year’s Seamless Middle East brought “The Future of Digital Commerce” to the spotlight, highlighting innovations and challenges across sectors like e-commerce, logistics, and supply chain.

The logistics and supply chain sector in particular has experienced a significant transformation, driven by changing consumer demands, technological advancement in AI and robotics, and a growing emphasis on sustainability.

Consumer expectations have become more complex, particularly due to the rapid rise of e-commerce and hence, company warehouses are evolving urgently from traditional storage spaces into intelligent, automated fulfillment centres, striving to survive in a fast-paced, customer-centric market.

There are five key trends reshaping the landscape

First, warehousing is no longer just about storing and shipping products. The rise of e-commerce has pushed businesses to rethink fulfillment as a critical touchpoint in the customer journey. Today, customised packing and branded experiences are becoming standard, requiring greater agility and personalisation in warehouse operations.

To meet these new demands, the logistics industry is undergoing a major shift powered by artificial intelligence and robotics, particularly through intelligent software like warehouse management systems (WMS). Just like smartphones are a daily necessity, WMS is now essential in modern warehouses, helping operators track inventory in real time, manage orders and staff, and provide performance insights.

Second, smart technologies like robotics are becoming essential, helping companies process orders faster and more accurately. This is seen widely, not only in global markets but also in the Middle East, across sectors like healthcare, food, and even military logistics

Third, companies are adopting omni-channel strategies, combining e-commerce, third-party logistics (3PL), and wholesale into one system. This model is being adopted as businesses can no longer rely solely on traditional B2B or retail channels. Thus, modern warehouses are becoming central hubs capable of managing diverse order types, serving both individual consumers and businesses under the same roof.

Fourth, artificial intelligence is starting to improve warehouse operations by helping managers make faster, smarter decisions and streamline processes.

Lastly, but perhaps the most far-reaching trend is the push for sustainability in logistics. From reducing carbon emissions in transportation to adopting green packaging solutions and energy-efficient warehouse operations, companies are under growing pressure from customers as well as investors to create a sustainable path for supply chains.

Robots are gaining ground

Robots are playing a big role. Far from replacing human workers, these technologies are redefining logistics operations by taking over repetitive, time-consuming tasks and enabling people to focus on higher-value activities.

Autonomous mobile robots (AMRs), for example, navigate warehouse floors to transport items efficiently, reducing manual effort and boosting overall productivity. Meanwhile, autonomous case-handling robots (ACRs) specialise in precise, high-speed item picking accelerating order fulfilment while enhancing accuracy and consistency.

Drones are also changing how inventory is managed. They can scan shelves on their own, removing the need for manual checks. They even operate in the dark, which helps save on energy costs and supports sustainability.

Moreover, AI is also powering new technologies like LiDAR sensors (light detection and ranging), which allow robots to identify, track, and handle moving objects with high accuracy. Whether it’s scanning barcodes or navigating aisles, these tools ensure that automation can function efficiently alongside human workers.

Automation drives customer satisfaction

Today, great customer experience is a necessity but serving thousands or even millions of people every day takes more than just manpower; it needs smart automation.

Automation isn’t just about doing things faster; it’s about consistency, accuracy, and the ability to adapt. When systems are easy to set up and manage, businesses can quickly adapt to changing needs without sacrificing quality.

When one bad customer experience can instantly damage a brand’s image online, there’s no room for mistakes. Ultimately, automation is a strategic investment that allows businesses to fulfil promises at scale, protect their reputation, and build loyalty.

A compelling example is the recent surge in demands for ‘Dubai chocolate.’ When this trend exploded within a week, it created an unexpected strain on the pistachio supply chain, with suppliers scrambling to keep up. In such scenarios, automation becomes critical, to handle volume and adapt to sudden shifts in consumer behaviour with speed and precision.

Does automation threaten human jobs

As more companies adopt AI and robotics, there is concern that jobs, especially in warehousing, might decline. What we need to understand is that this is a cycle: when a business reaches a certain scale, automation becomes necessary to sustain growth, while also creating new roles in areas like sales and customer support.

Rather than replace people, automation takes over repetitive or physically tough tasks, allowing workers to upskill and move into careers that are more rewarding and sustainable. In our industry, automation is creating value and helping both people and businesses focus on what really matters.

The writer is the MD of Savoye Middle East.

At the MENA Capital Market Summit 2025 held in Dubai, Gulf Business sat down with Mohamed Abu Basha, managing director and head of Macroeconomic Analysis at EFG Hermes, to unpack the region’s economic outlook amidst evolving global challenges.

From IMF’s revised forecasts to the potential of free trade agreements and the rise of Kuwait as a country to watch, Abu Basha provides a pragmatic and opportunity-driven view of how the Middle East is responding to inflation, diversification, and capital markets development.

The IMF recently trimmed the MENA region’s growth forecast to a modest 2.6 per cent as global risks mount. How do you interpret this outlook for the region, and what impact might it have on economic policies and strategies moving forward?

Well, I honestly see it more as an opportunity for the region. If we look at the last few years, the region has actually benefited from several global shocks — Covid-19, the Russia-Ukraine crisis, Brexit before that, and now instability in the Middle East.

So yes, it’s another episode of global uncertainty, but it fits within the broader trend we’ve seen. The region — especially the Gulf — has positioned itself cleverly as a beneficiary of these shocks. One of the biggest assets is strong, homegrown, domestic demand-driven economies. These are less vulnerable to global volatility.

Lower oil prices do pose a challenge and can affect sentiment and growth slightly, especially with concerns around a slowdown in China, which is now more linked to Gulf economies. But relatively speaking, I think the region stands out as one of the more resilient.

Tariffs have limited impact, and many economies here have the financial buffers to manage short-term downturns.

There’s also a reminder here to double down on diversification—investing in and developing capital markets, for instance. Despite current global headwinds, we’re seeing multiple IPOs underway, which speaks volumes about demand and the region’s financial depth. Governments are also working to build out local and international debt markets to support long-term financing needs.

On the monetary policy front, inflation in the region remains low. How do you see monetary policy evolving?

A: In this region, monetary policy largely follows the US Federal Reserve due to currency pegs to the US dollar. So any Fed rate cuts would be positive for us, especially as a counter to the drop in oil prices. Lower rates would reduce borrowing costs for the private sector.

But there’s something to watch out for — the potential weakness of the US dollar. If the dollar weakens, it could lead to imported inflation. For instance, buying from Europe becomes more expensive as the euro strengthens. While I expect this inflation to remain modest, it’s worth monitoring, especially in sectors dependent on imports.

Overall, I foresee modest, controlled inflation outside of the property sector, where rent inflation is more a reflection of underlying growth. As the global environment softens, we’ll likely see moderate inflation and perhaps some Fed rate cuts, which will be welcomed.

When we talk about the Gulf, the conversation is often dominated by the UAE and Saudi Arabia. Are there other countries or sectors you believe deserve more attention?

Saudi Arabia and the UAE are of course major players, thanks to their size and the depth of their reform and diversification agendas. But Kuwait is also starting to emerge as one to watch. Developments last year — like the long-awaited approval of the public debt law — are positive signals. We’re also waiting for additional reforms such as a mortgage law and fiscal measures.

On the sectoral front, the story used to be mainly about government spending benefiting real estate and financial services. Now, we’re seeing greater diversification. The consumer sector, the full energy value chain (renewables, utilities, downstream), and even non-bank financial institutions are gaining importance.

Tourism and hospitality are also booming — long strong in the UAE and now accelerating in Saudi Arabia. Kuwait is making early moves here too. These sectors are definitely promising.

How significant are free trade agreements for the region, especially given the global trend towards de-globalisation?

These agreements are extremely important for the region. The GCC countries are unique in that they both export capital—thanks to oil revenues — and need to import capital and know-how to support their diversification goals.

This dual dynamic makes the region naturally outward-looking. We’re seeing stronger ties with Asia — India and China in particular — alongside traditional partners like the US and Europe. Agreements like the GCC-UK free trade pact, when signed, can facilitate greater investment flows and technology transfer, helping accelerate economic diversification.

In a world that’s increasingly turning inward, these trade deals help the region remain globally integrated and economically competitive.

ROX Motor, a global luxury new energy vehicle brand, has announced a strategic partnership with W Motors, the UAE’s leading high-performance vehicle manufacturer, to localise production and assembly of its vehicles in the United Arab Emirates. The agreement, signed at Make it in the Emirates (MIITE) 2025, marks a major milestone in enhancing regional manufacturing and supporting the UAE’s industrial and sustainability goals.

As part of this collaboration, ROX Motor will begin producing its vehicles – starting with the ROX 01 – at W Motors’ new facility in Abu Dhabi. This move signifies the first time ROX vehicles will be manufactured outside of China, reflecting a commitment to local adaptation and regional resilience.

“This partnership accelerates our regional growth and aligns with the UAE’s industrial strategies,” said Jarvis, founder and CEO of ROX Motor. “Together with W Motors, we’re building the future of sustainable mobility in the UAE and beyond.”

Ralph Debbas, founder and CEO of W Motors, added: “We’re proud to lead the manufacturing of ROX 01 in Abu Dhabi. This collaboration enhances our ability to provide advanced contract manufacturing and supports the UAE’s ambition to become a global automotive hub.”

The partnership supports key national initiatives including Operation 300bn, Industry 4.0, and Net Zero by 2050, reinforcing both companies roles in shaping a sustainable and self-reliant automotive future for the region.

In addition to local manufacturing efforts, ROX Motor is accelerating innovation through strategic technology partnerships in the UAE. The company recently entered a collaboration with Enercap to advance high-performance battery cell applications across its product line, enhancing deployment and operational efficiency regionally and globally.

ROX Motor has also signed an agreement with leading petrochemical company Borouge to explore joint R&D on advanced polyolefin materials for automotive use, further strengthening its localised supply chain and supporting the UAE’s Operation 300bn strategy. Borouge collaboration brings advanced polyolefin innovation, enabling lighter, more durable interiors and exteriors tailored for everyday use – from bustling city streets to open desert.

EFG Holding has reported a mixed first quarter for 2025, with revenues of EGP5.6 bn, down 34 per cent year-on-year (YoY).

The decline reflects last year’s exceptional foreign exchange (FX) gains following a sharp Egyptian pound devaluation.

Adjusted for FX effects, revenues grew 31 per cent YoY, underscoring strong operational momentum across its core businesses.

Total operating expenses fell 29 per cent YoY to EGP3.5 bn, helped by lower employee costs and provisions.

Net profit after tax dropped 34 per cent YoY to EGP 1.2bn.

Karim Awad, group CEO, said, “Our Q1 results demonstrate the resilience of EFG Holding’s diversified platform despite cycling last year’s unusually high FX gains. When adjusted for these one-offs, our performance shows solid operational growth. Our Investment Banking division led landmark transactions in Saudi Arabia and the UAE, further cementing our regional leadership.”

EFG Hermes highlights

EFG Hermes, the investment banking arm, saw revenues decline 54 per cent YoY to EGP 2.9 bn due to FX impact, but rose 30 per cent YoY excluding FX. Sell-side and buy-side revenues grew 46 per cent and 50 per cent YoY, respectively.

Net profit fell 54 per cent to EGP 652 million.

EFG Finance, the non-bank fiinancial institutions platform, delivered a 23 per cent YoY revenue increase to EGP 1.3 bn, with net profit more than doubling to EGP297m.

Bank NXT, the commercial banking unit, posted 11 per cent revenue growth to EGP1.4bn and net profit increased 5 per cent to EGP498m, supported by higher interest income following rate hikes.

Awad added, “Our brokerage business is thriving in key markets like Kuwait and the UAE. We are advancing in private equity with the Saudi Education Fund and strengthening fintech through Valu’s growth and upcoming listing. We remain focused on strategic execution and sustainable value creation.”

Emirates is expanding its operations for this year’s Hajj season, with 33 special flights to Jeddah and Madinah running until May 31, and again between June 10 and 16, to support thousands of pilgrims embarking on their once-in-a-lifetime journey to the holy city of Makkah.

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In addition, Emirates will operate 13 more flights to and from regional destinations including Amman, Dammam, Kuwait, and Bahrain to meet high travel demand during the Eid Al Adha period, as travelers head to summer leisure destinations or visit loved ones for Eid celebrations.

Over the next three weeks, Emirates will transport nearly 32,000 Hajj passengers from key cities across its network, including the USA, Pakistan, Indonesia, South Africa, Thailand, and Côte d’Ivoire.

The onboard pilgrim experience

The Hajj journey with Emirates begins upon arrival in Dubai, where dedicated airport teams assist pilgrims through arrivals, connections, and hotel transfers.

Onboard, pilgrims in all cabin classes will receive distinctive ‘Hajj’ luggage tags and a newly introduced Hajj kit featuring a prayer mat, tasbih beads, a mindfulness guide, silicone water bottles, and cushioned, non-slip socks—ensuring a comfortable and respectful journey.

Special Hajj flights also offer ablution-friendly facilities, fragrance-free towels, announcements marking Al Miqat zones, and curated Hajj content on ice, Emirates’ in-flight entertainment system. Passengers returning from Jeddah and Madinah may check in up to five litres of Zamzam water, stored in a designated cargo area.

Travelers on Hajj flights are encouraged to visit Emirates’ website for the latest travel requirements and details on the Hajj experience.

Eid Al Adha celebrations onboard

To mark Eid Al Adha, flights to select destinations in the Middle East, Africa, South Asia, the Far East, and Europe will feature a special festive menu across all travel classes.

First, Business, and Premium Economy Class passengers can enjoy traditional dishes like Lamb Madfoon and Chicken Zurbian, along with desserts such as Pistachio and Chocolate Nammoura Cake, and White Chocolate and Rahash Mousse Cake. In Economy Class, passengers will be treated to Pistachio Cake and Coffee Cake.

On Emirates A380 flights, First and Business Class customers can enjoy a wide array of Emirati desserts and unlimited Arabic coffee in the Onboard Lounge.

Desserts will be served in celebratory packaging, featuring bite-sized delights like Cake Rangeena, Pistachio Rahash Cake, and Date Mamoul cookies.

At the Emirates lounge in Jeddah, First and Business Class passengers will be offered a premium selection of dishes including Lamb Mathlouta, Lamb Saleeg, Henaini, and Cheese Kunafa.

Entertainment and shopping onboard

During Eid Al Adha, Emirates passengers can enjoy over 2,000 movies on ice, including more than 75 Arabic-language titles and new releases like Abo Nasab, Al Mazra’a, and Al Ankaboot. The platform also includes up to 50 Arabic TV series channels and Shahid exclusives such as Al Bath, Trad, and Sadaf. Turkish series dubbed in Arabic, like Tout El Aswad and Al Uqda, are also available.

Additional content includes 15 Arabic podcast and audiobook channels, The Holy Qur’an, and over 500 Arabic music channels covering pop, classical, Khaleeji, Maghrebi, and fusion genres.

Passengers in a hurry can shop duty-free via Emirates RED’s summer catalogue, which features 200 luxury products from brands like Hermès, Cartier, Tom Ford, Creed, and Jo Malone.

Travelers can also pre-order items at EmiratesRED.com, with products delivered directly to their seat. This service is available on most flights and allows shopping from 21 days to 40 hours before departure. During Eid Al Adha, Emirates RED is offering a 10% discount with the code REDMAG at checkout.