Globe Express Services’ UAE office posts 7 per cent gross revenue growth in 2014
Value of local logistics sector expected to reach USD 27 billion
Globe Express Services, announced that its UAE operations recorded a 7 per cent gross revenue increase in 2014 compared to the previous year. Last year’s strong revenue was driven by thriving domestic demand for modern logistics services on the back of the country’s increasing economic prosperity.
The company is capitalizing on immense opportunities in the flourishing market by offering its cutting-edge supply chain solutions to meet the logistics needs of various organizations across industries. GES combines its core specialties of air freight, ocean freight, and logistics services to deliver globally integrated, tailor-made end-to- end services to its clients.
Mustapha Kawam, Managing Director-Gulf States, GES, said: “GES has achieved a good and consistent growth in 2014 due to its continuous improvement in strategic areas of its UAE operations. We expect to maintain our strong performance this year with expectations of the domestic market further gaining substantial significant growth. Our goal is to consistently meet the rapidly increasing demand for world-class logistics services. This 2015, we remain confident in our direction as we plan to invest for more future growth and prepare for new important opportunities buoyed by the steady local economic expansion.”
The value of the local logistics sector is expected to reach USD 27 billion this year due to a substantial increase in import and export trade volumes as well as an upward trend in manufacturing activities. The market value in 2013 hit an estimated USD 23.4 billion, accounting for 6 per cent of the country’s gross domestic product.
Per industry reports, the UAE’s location, state-of- the-art infrastructures, and progressive non- bureaucratic government are some of the sector’s main growth drivers. In Dubai, in particular, the burgeoning maritime sector is also seen to contribute to the industry’s further expansion in the next few years.
Among the sector’s four key areas, freight forwarding is projected to account for the largest share this 2015 as in the previous years. This will be followed by transportation, warehousing services, and value-added logistics services (VALS).
The UAE’s phenomenal growth complements the expansion not only of the GCC market but the entire Middle East as well where the international cargo demand is expected to witness a 4.9 per cent increase by 2016. According to an industry report produced by Transport Intelligence, the Middle East’s regional freight forwarding sector will expand by 7.8 per cent annually until 2017.