Knight Frank’s latest research paper proved Dubai as an upcoming staging post in Africa as it presents businesses with a well connected, strategically located trade avenue.
The global property consultancy released its UAE Industrial and Logistics Research Report for Q3 2015, and noted Dubai’s ability to increase trade with Africa and be a point of entry to the continent’s $3 trillion economy.
The report states that Africa’s economies will grow, on average, 4.5 percent in 2015 and 5 percent in 2016 and will have excellent growth prospects over the next ten years.
Knight Frank also asserts that the growing incomes of African consumers are encouraging companies across the UAE to look west, particularly from the manufacturing/assembly units and warehouses of Jebel Ali Free Zone (JAFZA) and Dubai South (formerly DWC).
With more than half of the continent lacking adequate infrastructure and integration in terms of cross-border trade, it is quite encouraging that Dubai stands out as a prospective hub. Transporting and preserving goods in inefficient warehouses, across poor roads and closed borders are cited in the report as Africa’s major problem, bringing about a cost-effective fast-moving consumer goods (FMCG) businesses to operation cities such as Dubai than in Africa itself.
A 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 has been noticedMay this year since 2013.
Goods for infrastructure developments will have to move through neighbouring centres, such as the UAE’s shipping and aviation hubs, before reaching Iran. As it does not have the access to superior infrastructure that the UAE has developed, European and Chinese goods are expected to go through Dubai.
The report Dubai will increase its appeal with the further integration of the Dubai South and JAFZA free zones, which will create stress-free movement of goods and services along the bonded transport and logistics corridor from Jebel Ali Free port to Dubai South Airport.
