United Arab Emirates Freight Transport and Shipping Report Q2 2016
BMI View: UAE's growing economy and improved relations with major trade partners translates intogrowth for all freight modes in 2016 and over the medium term. Domestic buying power remains strongand, in combination with service expansion of major airlines Emirates and Etihad, air freight will be thefastest growing mode, responding to demand for valuable goods. Road freight is the dominant mode,although this will lose market share when the (under construction) rail network launches in 2018. Oil willremain the country's main export, benefitting the shipping sector that continues to grow and is driven alsoby UAE's enhanced role a transhipment hub.
Real GDP rates are projected at 3.3% in 2016 and set to average 3.1% over the medium term (2017-2019).
Although GDP rates are slightly lower than the previous 5 year period, this is partly due to the current lowoil price environment and does not necessarily translate in less trade. Consumer buying power remainshealthy in 2016 with low unemployment (3.2%) and inflation (3.7%) driving domestic demand. UAE'smajor export destinations are also forecasted to record real growth in imports and GDP this year, furtherboosting trade volumes.
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