The UAE shines as a leader in logistics and business favorability
According to the recently released 2025 Agility Emerging Markets Logistics Index, the United Arab Emirates (UAE) stands out as an excellent place for business, surpassing many other emerging economies in logistics and digital readiness.
This year marks the 16th edition of the Index, which examines logistics capabilities across 50 countries. The UAE has improved its ranking by showcasing its strengths in both local and international logistics, the overall business environment, and readiness for digital transformation. The nation ranked in the top six in each of the four main categories assessed.
The Index highlights the UAE’s efforts in promoting public-private partnerships and its proactive approach to tackling climate change. It showcases improvements in customs efficiency, air and ocean transport connections, and initiatives that support startups and digital skills training, while also working to lower carbon emissions.
In the overall rankings, the UAE came in third, following China and India, which lead primarily due to their larger market sizes. “The UAE continues to close the gap with those ranked above it, underscoring the effectiveness of its investment strategies,” the report states.
Alongside the rankings, a survey of 567 logistics professionals revealed that over 62% have revamped their supply chains to address rising costs, potential trade tariffs, and signs of a looming global recession.
The findings suggest that the logistics sector is entering 2025 cautiously, with many companies bracing for increased costs and possible trade disruptions due to imminent U.S. tariffs and rising exports from China.
“There is a sense of unease among shippers, carriers, and other industry players regarding geopolitical issues that could drive up costs and affect trade flow,” said Agility Vice Chairman Tarek Sultan. “Businesses are reassessing their production strategies as they look for stable growth opportunities.”
The 2025 Index also provides a detailed overview of the UAE and its neighbors in the Arabian Gulf. Together, the six Gulf countries are establishing themselves as key players in global trade by investing in infrastructure, artificial intelligence, energy transitions, and workforce development. Despite growing concerns about global supply chains, the UAE and its Gulf partners have emerged as “haunts of stability and resilience,” the report concludes.
While the higher-ranked countries remained steady, there were notable changes in the rankings further down. The top ten includes China, India, UAE, Saudi Arabia, Malaysia, Indonesia, Mexico, Qatar, Thailand, and Vietnam. Colombia made a significant leap upward, while Nigeria, Bangladesh, and Ukraine experienced declines.
In terms of business environment, the six Gulf countries ranked among the top 11. The UAE secured the highest position for the best business climate, with Saudi Arabia and Qatar in third and fifth place, respectively. For digital readiness, China, UAE, Malaysia, Qatar, and Saudi Arabia lead the pack.
KEY SURVEY FINDINGS
- Recession — 55% of participants view a global recession as likely or certain.
- Protectionism — Around 82% agree that tariffs and trade protectionism significantly impact their supply chains.
- Emerging markets — 72% feel that risks in emerging markets have increased over the past year.
- China — 54% are planning to relocate production or sourcing away from China in the next five years due to trade tensions and rising costs.
- Africa — Despite heightened risks, 35% are looking to increase investments in Africa in 2025, compared to only 8% planning to scale back.
- Net-Zero — Almost 65% believe their companies are on track to meet net-zero emissions goals.
NATIONAL RANKINGS
- In the Middle East and North Africa, the rankings are as follows: UAE (3), Saudi Arabia (4), Qatar (8), Turkey (11), Oman (14), Bahrain (16), Jordan (17), Kuwait (18), Egypt (24), Morocco (26), Iran (32), Tunisia (36), Algeria (38), Lebanon (42), Libya (46).
- Sub-Saharan Africa rankings: South Africa (20), Kenya (22), Ghana (31), Tanzania (37), Uganda (41), Nigeria (43), Ethiopia (45), Angola (47), Mozambique (48).
- Asia rankings: China (1), India (2), Malaysia (5), Indonesia (6), Thailand (9), Vietnam (10), Philippines (23), Kazakhstan (25), Sri Lanka (27), Cambodia (30), Pakistan (33), Bangladesh (39), Myanmar (49).
- Latin America rankings: Mexico (7), Chile (11), Brazil (13), Uruguay (19), Colombia (21), Peru (28), Argentina (29), Ecuador (34), Paraguay (35), Bolivia (44), Venezuela (50).
- In Europe: Ukraine (40).
The Agility Emerging Markets Logistics Index has been compiled by Transport Intelligence (Ti) since its inception in 2009.
Ti’s Chief Executive, John Manners-Bell, remarked, “Despite facing global economic challenges and interruptions to shipping routes over the past year, the Gulf economies have demonstrated remarkable strength. Their focus on diversification, investment in transport, green energy initiatives, and major infrastructure projects has set the groundwork for continued growth. An improved security situation in the region will further enhance its role as a bridge between emerging superpowers and Western markets.”
