by Giorgi Machavariani
Dubai as a logistics cluster is one of the most successful cluster at the global level. It is a highly developed region of the United Arab Emirates (UAE). The country enjoys with relatively high income per capita (approximately 36.2 thousand USD). In the UAE the service sector represents 47 percent of GDP. As for Dubai, it has the most dynamic economy within the UAE where logistics play very important role in economic activities. Its share in GDP is 8.8 percent (including communication). Besides logistics are an industry that influences on the competitiveness of an economy. Logistics comprise transportation, inventory, material handling, warehousing, and packing and also very often security services.
Dubai has developed a dynamic logistic cluster that is playing a central role in the Europe-Asia-Africa trade. It also serves local markets and operates as a regional trade hub. Three main factors must be underlined in explaining why Dubai is such a successful logistic cluster. These factors are: advantageous geographical location, market conditions, and the role of the government.
The region has very strategic location in Gulf and therefore part of the fortune of Dubai is related to its proximity to some of the fastest growing economies in the world, basically China and India. So, advantageous geographical location helps this region to take a prominent position in the global logistics network and therefore today it is one of the critical nodes in the world’s supply chain.
Dubai’s (as a logistic cluster) market conditions are analyzed by using the diamond model of Porter (1990). Based on this model following four key factors must be considered: firm strategy, demand conditions, related and supporting industries, and factor conditions. Actually, these factors are the basic drivers of competitiveness of an industry which is crucial for a success.
From firm strategy point of view 6 factors must be highlighted: open markets in logistics and transportation sector, business supportive economic policy, favorable complementary policies, massive infrastructure investments, attractive regulatory and business environment, and growth oriented governmental companies. In fact these became contributors of Dubai’s logistic cluster development. It is also worth noting that massive and aggressive infrastructure spending became a key element for a success (see figure1).
Dubai’s ability to operate as a regional trade hub has been spurred by the demand conditions as well. Six main demand conditions can be underlined: Jebel Ali Free Trade Zone, domestic manufacturing sectors, Dubai Industrial City, population growth, increased import caused by economic growth, and trade measures against Iran. Among them most important factors are free zone, industrial city and domestic production. These determinants create economic activities and push significant demand for logistical services and much of it is captured by Dubai.
Related and supportive industries play considerable roles in the Dubai’s logistic cluster development. It, in fact, includes not only industries but also trends in related sectors, clusters and markets, associations and supportive governmental organizations. There are 6 main factors in this regard: highly developed finance, insurance, construction, and tourism clusters, substantial increase of FDI, rise in local capital markets, cluster associations, Dubai Industrial City, and rapid growth in trade. These industries and organizations provide necessary services, markets and information for improvement and strengthening of competitiveness of the logistic cluster (see figure1).
Dubai’s logistic cluster has some beneficial factor conditions – in particular its natural assets (harbor, oil, gas), advanced physical infrastructure (ports, airports, highways) and geographical proximity with the potential suppliers (mainly China and India) and buyers (EU, Asia) (see figure1). All factors listed above reinforce the potential of Dubai’s logistic sector to be competitive at the global level.
State plays very important and active role in Dubai’s logistic cluster. In order to promote logistic sector the government (both local and central) actively intervenes. It has 5 main priorities: 1. Spurring growth by massive infrastructure spending; 2. Facilitating collaboration (public-private and personal relationships); 3. Strengthen links between port, free zone and customs; 4. Evolve innovations (for example airport in the port), and 5. Develop complementary policies (trade, fiscal, business environment improving).
The UAE’s government succeeded in creating world class infrastructure in transportation (seaport, airport, roads) energy, communication, and tourism sectors. This infrastructure is a strong asset and plays essential role in encouraging logistical development. Recently, for instance, a new logistics centre in Dubai Logistics City has been launched.
The UAE government attempts to facilitate interactions between the government and business sector. This is crucial for a success of the logistics cluster because public-private and personal relationships are central issues in improving the competitiveness (Porter, 1998). In this regard, the major institution is the Chamber of Commerce. Its objectives are: encourage collaboration with private sector and support the development of small and medium sized enterprises. Besides the government launched the Dubai Cluster Platform and before this was created Focus Group of all stakeholders (public and private companies, service providers, educational institutions, associations, related and supportive industries) in logistics sectors. The aim of these actions was: boosting the competitiveness of Dubai in logistics by creating and fostering permanent network of collaboration.
It is also worth noting that the UAE government also uses complementary policies to spur logistics sector. It implemented business friendly tax system (very low corporate tax) which significantly reduces the cost of doing business. I addition, creation free zones also have positive impact on the cluster. It attracts capital form abroad and raises mobility of it.
Hence, the main forces that make Dubai’s logistics cluster successful are favorable geographical location, market (factor, demand) conditions, effective complementary policies, highly developed related industries, and the world class physical infrastructure.
16 comments:
I totally agree with this. Also, I got to know a lot about it from this post. I am glad I came across this post. I work for logistics services Dallas and such posts interest me a lot. I like to know about different services at different places. I like knowing about it a lot. This was an edifying post.
Helping your hotel staff reach down to their job on time is our forte. We at NexGen Falcon will assist you in booking best class hotel staff transportation services without getting restricted about price or any other concern. Furthermore, the buses are designed to efficiently meet the needs of hotel staff in terms of punctuality, comfort and above all, safety. Feel free to have a cup of coffee with our team and enlighten yourself about our services.
School Bus Service | Hotel Staff Transportation | Luxury Bus Rental In Dubai | Mini School Bus Rental | Yellow School Bus | Luxury Bus Travel | Looking For 7-15-28-30-32-35-50 Seater Luxury Bus Rental In Dubai
I am reading your post from the beginning, it was so interesting to read & I feel thanks to you for posting such a good blog, keep updates regularly.company formation services in dubai
I am reading your post from the beginning, it was so interesting to read & Thanks for this information you share with us,
30 Seater Bus For Rent
Hey Man! When you need any typeface for designing operations then this site will help you;
Royalty Free Fonts
30 seater Bus For Rent
Employee Transport Services
Hire 30 Seater Bus For Rent
About Us
nice blog thanks for sharing bus rental Dubai
Thank you for highlighting the importance of Dubai as a logistics cluster and its crucial role in the global supply chain. As someone interested in pursuing a logistics course in Dubai, your blog has provided valuable insights into the city's strategic location and infrastructural advantages. The content was well-researched and presented, making it a valuable resource for learners like me. I appreciate the effort in sharing this knowledge, and I am now more motivated to explore opportunities in the field of logistics in Dubai. Keep up the excellent work!
Purchasing YouTube subscribers in rupees presents an efficient pathway for content creators to swiftly enhance their channel’s visibility and appeal. This method is particularly advantageous for those aiming to solidify their presence within the Indian digital ecosystem, where the value of a robust subscriber count can significantly influence viewer perception and engagement. The process of buying subscribers in the local currency is not only cost-effective but also simplifies the marketing strategy, allowing creators to allocate more resources towards producing engaging and high-quality content. It’s a strategic investment that accelerates the channel's growth, boosts its credibility, and increases its chances of being recommended by YouTube's algorithm. By initiating a strong, immediate influence on the channel’s appeal, this approach serves as a foundation for nurturing a vibrant and engaged community, ultimately facilitating a seamless bridge between the creators and their target audience.
https://www.buyyoutubesubscribers.in/
Lasik surgery hospitals in Delhi are distinguished by their world-class infrastructure and adoption of groundbreaking laser technology, providing patients with highly effective vision correction procedures. These facilities pride themselves on a clean, serene environment that offers comfort to patients throughout their stay. Staffed by internationally acclaimed ophthalmologists and dedicated support staff, the hospitals ensure every patient receives individualized care and attention. From advanced diagnostic equipment to the latest in laser technology, patients are assured of receiving care that's at the forefront of ophthalmic innovation. Importantly, these hospitals offer their high-quality services at prices that make vision correction accessible to a wide demographic. The use of FDA-approved techniques reinforces their commitment to safety and excellence in eye care. Through a blend of technology and empathy, Lasik surgery hospitals in Delhi stand as pillars of hope for those looking to enhance their vision and quality of life.
https://www.visualaidscentre.com/
Cheap hosting in India has become a game-changer for those stepping into the online domain, offering a cost-effective pathway to establishing a digital presence. It seamlessly blends affordability with essential hosting functionalities like ample disk space, sufficient bandwidth, and basic security protocols. These services are designed to ensure that websites remain accessible at all times, with impressive uptime rates that defy the low cost. The scalable nature of these hosting plans means that as a website grows in audience or content, adjustments can be made smoothly, without significant expense or hassle. User-friendly interfaces further make the management of websites straightforward, inviting individuals of all technical backgrounds to confidently manage their online ventures. This initiative has significantly democratized the digital landscape in India, empowering a wide array of users, from bloggers to small and medium-sized enterprises, to forge their online identity with minimal financial investment yet reliable hosting support.
https://onohosting.com/
Buy Active YouTube Views sets a new benchmark for content creators aiming to invigorate their YouTube channel's engagement and visibility. By ensuring that views come exclusively from active, real users, this service offers a unique advantage by potentially increasing engagement metrics such as likes, comments, and shares. This targeted approach not only elevates the view count but significantly enhances the video's appeal to YouTube's sophisticated algorithm, improving its potential visibility and organic reach. Adhering strictly to YouTube's guidelines, Buy Active YouTube Views provides a safe, risk-free method to boost a video's performance while maintaining the integrity of the creator's channel. It represents a strategic investment for creators focused on cultivating a dynamic and responsive audience, setting the stage for sustained growth and success on one of the most competitive digital platforms.
https://www.buyyoutubeviewsindia.in/
Singapore's healthcare sector is on the lookout for skilled Indian nurses ready to elevate their careers in a world-renowned setting. These positions not only promise competitive salaries and a full spectrum of benefits but also the opportunity to live and work in one of the most innovative and patient-centric healthcare systems in the world. Nurses here are valued for their contribution and are supported through continuous professional development and access to the latest medical technology. The city's harmonious blend of Eastern and Western cultures, coupled with its reputation for safety and cleanliness, makes it an ideal place for personal and professional growth. This vibrant environment, dedicated to healthcare excellence, offers nurses a unique chance to become leaders in their field, amidst Singapore's dynamic and multicultural backdrop. Join us to not only advance your career but also to make a meaningful impact in a community that respects and cherishes the nursing profession.
https://dynamichealthstaff.com/nursing-jobs-in-singapore-for-indian-nurses
In Mumbai, the Breast Cancer Treatment Doctor stands as a luminary in the medical community, merging cutting-edge technology with a profound human touch. Their approach to care is rooted in the principle of treating the individual, not just the disease, prioritizing personalized treatment plans that cater to the unique needs of each patient. This doctor is not only a clinician but also a researcher at heart, constantly seeking new and improved methods to battle this formidable opponent. Their commitment to innovation is matched by their dedication to patient education, ensuring that those under their care are well-informed and active participants in their own healing journey. Collaboration is a key element of their practice, working alongside a team of specialists to provide comprehensive and holistic care. The warmth and empathy they extend to patients and families alike make the daunting experience of cancer treatment more bearable. Through their work, they embody the hope for a future where breast cancer can be faced with confidence and courage.
https://drnitanair.com/
The Gastric Cancer Specialist in Ahmedabad stands as a beacon of hope for those grappling with gastric cancer, embodying the pinnacle of oncological care. With a profound dedication to advancing treatment, this expert integrates innovative surgical techniques and groundbreaking targeted therapies to provide personalized patient care. Their approach is characterized by a comprehensive strategy that not only focuses on eradicating the disease but also prioritizes the patient's overall well-being and quality of life. Through collaborative efforts with a multidisciplinary team, they ensure that every aspect of care, from diagnosis to recovery, is meticulously planned and executed. This specialist's commitment to research and education furthers their impact, driving advancements in gastric cancer care and fostering awareness within the community. Patients under their care are met with compassion, empathy, and a relentless pursuit of the best possible outcomes, making this specialist not only a distinguished figure in the medical field but also a trusted ally in their patients' journeys.
https://drvirajlavingia.com/
Post a Comment