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5/28/24, 11:29 AM Express logistics: Fast-tracking the future in the Middle East - Logistics Middle East

Challenges in Middle Eastern express

logistics

The Middle East logistics sector faces a significant shortage of skilled labour,
particularly in specialised roles such as supply chain management, transportation

planning, and warehouse operations. This shortage drives up labour costs as
companies must offer higher wages to attract and retain qualified personnel. To

address this, there needs to be increased collaboration between the private and public
sectors to provide necessary training and education in logistics and supply chain
management.

While the Middle East is rapidly embracing technological advancements, integrating

these technologies presents several challenges. High costs, limited awareness, and data
security concerns hinder the widespread adoption of innovations such as blockchain,

robotics, automation, and IoT. Overcoming these barriers is crucial for maintaining
competitiveness in the fast-evolving logistics landscape.

Geopolitical tensions in the region, such as conflicts in the Red Sea and broader Middle
Eastern instability, also pose significant risks to logistics operations. These issues can

disrupt supply chains, leading to delays and increased costs. Navigating these
challenges requires careful planning, strategic partnerships, and innovative solutions to

ensure the resilience and security of supply chains.

Despite substantial infrastructure investments, areas still require further development
to support efficient logistics operations. While major hubs like Dubai and Abu Dhabi

have world-class facilities, other regions may lack the necessary infrastructure, leading
to inefficiencies and higher operational costs.

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