Last Updated on November 8, 2023 by newseditor
The majority of CEOs think digitizing the supply chain of a large firm will cost billions of dollars. Further, they estimate that the transition will take between three and five years. The digital transformation will necessitate significant expenditures in cloud computing. The estimation belongs to one company. Imagine if the digital revolution had to affect an entire region instead of just a large corporation? GCC nations are becoming more significant in terms of international logistics and trade. As a result of competing nations utilizing laws and practices that prioritize digitalization, the logistics sector is currently being disrupted. Now is the time for Gulf Cooperation Council countries to address their logistical issues and gain an edge over their competitors.
Digital solutions are still far from the standard in the logistic sector, even though the GCC nations have established aggressive digitalization goals and evaluated their procedures. Hand-operated methods continue to be prevalent. However, the Dubai government aims to develop an end-to-end digital structure that will somehow eliminate manual processing. The transition from manual to electronic processing is a challenging task.
A Logistics Gap Exists Between GCC Region
The goal of the GCC nation is to achieve economic diversity, which is only possible through the development of a robust and effective logistics industry. Due to its role in facilitating foreign trade movements and supporting supply chain operations, the logistics industry is vital to local, regional, and national economies. The GCC nations can grab a significant portion of the wealth that logistics generates. 11% of the global gross domestic product was made up by the transportation and logistics industry in 2011. Apart from the UAE, the majority of GCC countries have yet to establish their foundations for economic development. In the World Bank’s Logistics Performance Index, UAE ranked 11th in the world, while the other GCC nations underperformed.
Develop Enabling Ecosystems For Logistics Through Digitization
Several countries have streamlined their digital logistics, and GCC countries should seek assistance from them. New players in the logistic sector are offering innovative, tech-driven, and inventive business models. By adopting blockchain to automate facilities, competitive nations are also experimenting and redesigning current businesses. Logistics startups should be supported and established in GCC countries to make innovation rapid across the value chain. Research and development investments should be made at a strategic level by governments. This includes the provision of capital, the establishment of incubators with the private sector, and access to capital.
Assist Policymakers In Integrating Digitization
Governments in the GCC must combine digitalization with policymaking to implement a digital-first strategy in logistics. Now that they have more information available to them, it should be leveraged to create a single source of truth. Others have adopted data-driven policymaking by establishing a single source of truth that integrates data and processes. Single-window technology is being introduced in Abu Dhabi. As a result, the GCC countries can gather information relevant to trade flows and seek out new business opportunities.
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