According to research from Knight Frank, Dubai is set to become Africa’s staging post. The global property consultancy released its UAE Industrial and Logistics Research Report, and noted Dubai’s ability to increase trade with Africa and be a point of entry to the continent’s economy.
Knight Frank asserts that the rising incomes of African consumers are encouraging companies across the UAE to consider Africa a lot more seriously, particularly from the manufacturing/assembly units and warehouses of Jebel Ali Free Zone (JAFZA) and Dubai South (formerly DWC).
With much of the continent lacking infrastructure and cross-border trade integration, it is unsurprising that Dubai stands out as a prospective staging post.
Moving and storing goods in inefficient warehouses, across poor roads and closed borders are cited in the report as Africa’s problem areas, making it more cost-effective for fast-moving consumer goods (FMCG) businesses to operate from cities such as Dubai than in Africa itself.
There has been rapid expansion of airlines Emirates, flydubai and Etihad over the last year into African destinations, against a backdrop of cargo and passenger traffic at Dubai’s airport growing at their fastest pace in May this year since 2013.
SOURCE: [Arabian Supply Chain]