The World Logistics Passport initiative, officially launched in 2020 World Economic Forum in Davos has made a huge impact on the local economy in the UAE and if you are a Dubai Logistics Company, the WLP is a real boon for you. In the last decade, the UAE government has taken several steps to encourage the development of the logistics sectors. And with the correct implementation of these policies, the area is now reaping the benefits. Not only has the logistics sector become a predominant contributor in the overall economy of the area, but it has also helped UAE overcome its overdependence on the oil sector. The main reason behind giving the logistics sector a great push was to diversify economic development after the oil prices plummeted to an all-time low in the early part of the 2000s. From opening up trade relationships with neighbouring countries to developing supporting infrastructure like roads and ports and developing pro-business partnerships between government and private organizations, the country has come a long way.
But the government feels that there is a lot of scope for further development and it is leaving no stone unturned to make things happen. In one such effort to further fuel the development of the logistics sector, the UAE government launched an initiative called the World Logistics Passport that made doing business with other countries more beneficial for the logistics companies in the UAE. And since then, several countries have joined hands for increasing trade in the area making WLP a real success. The initiative aims at overcoming non-tariff trade barriers by simplifying the movement of cargo, reducing administrative costs, providing accurate cargo information, and easing cross-border movement. This allows for a faster and more economical cargo movement.
The WLP, which is being touted as the country’s dream initiative, aims at doing business with 20 markets globally that represent 54 percent of the global GDP. And if everything goes as planned, the WLP is projected to have a 2 percent impact on the global GDP by 2023. This is huge not only in terms of how it will catapult the business for the logistics companies in the country but also for the world of logistics as the UAE plays an important role in cargo movement the world over.
The initiative that aims at reimagining business relations with several developing economies was formally joined by countries like Colombia, Thailand, Kazakhstan, Senegal, Brazil, and Uruguay immediately after its launch. In recent months, other countries like India, Israel, Indonesia, and South Africa have also joined hands for increased business revenue through WLP. And these recent additions to the list of members joining the WLP initiative have proved to be quite critical with the immense business potential these markets bring. While India is one of the world’s biggest economies, Indonesia remains a key player for trade in the South-Asian countries. And South Africa holds an important geographical positioning for trade into the other African countries.
The UAE has been initiating several programs to boost its economy through the logistics sector and WLP is one of them. The government’s efforts to make Dubai the economic hub are clear as they have collaborated with several agencies to fast-track their plans. With domestic giants like Dubai Multi Commodities Centre and flydubai along with operators like DP World, Dubai Customs, Emirates airline, and dnata joining hands with the initiative is a clear indication that the UAE government is concentrating hard to make it work. Other multinational giants like Pfizer, Sony, LG, Samsung, Johnson & Johnson, UPS, etc have also joined the initiative to give it a real boost.
Another very important aspect of WLP is that with an efficient system in place and improved market access, the participants stand to save a lot of time and cost. This can fast-track the logistics sector into a booming economic contributor in the UAE. The WLP also connects some of the largest markets for its members making it possible for them to do trade in areas that were hitherto either inaccessible or too cumbersome for profitable business relations.
After the COVID-19 pandemic, the global economy has taken a hit. And these kinds of initiatives are all set to help businesses pick up the pace and recover to their original states. By reducing the cost of doing business and increasing the efficiency of the logistics value chain, the WLP is proving to be a game-changer in the region for global freight movement. Not just that, with expanding business viability, this initiative will also generate a lot of jobs that have been yet another worrying factor in the post-pandemic world. More investments from global giants are expected to regulate the flow of money across continents and mark the beginning of a profitable cycle.
To sum it up, World Logistics Passport is taking giant strides in providing a pro-business environment for the member countries and reaping benefits for its own economy as well. The commitment that the UAE ministry has shown towards this cause has been quite reassuring and it seems like their efforts are sure to yield the right results. It will be interesting to see how this mega-initiative pans out in the coming years with experts estimating that it might have a lasting impact on the dubai logistics sector and freight movement in a good way.