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Dubai unveils $4.5 billion logistics strategy to boost economy

The strategy outlines 17 projects to enhance sector growth and competitiveness through digital markets and platforms.

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Dubai’s Roads and Transport Authority (RTA) has launched the ambitious Dubai Commercial and Logistics Land Transport Strategy 2030. The strategy targets doubling the land transport and logistics sector’s direct contribution to the emirate’s economy, reaching Dh16.8 billion ($4.5 billion).

The strategy outlines 17 projects to enhance sector growth and competitiveness through digital markets and platforms. Key initiatives include developing digital platforms for the commercial transport and logistics sector, value-added permits, no objection certificates and a heavy freight services platform.

The strategy emphasises leveraging data and technology to support high-potential companies, collaborating with the commercial transport sector to deploy modern vehicles, and fostering innovative methods and future technologies. It aims to regulate and govern the commercial transport sector, identify growth opportunities and establish investment and partnership prospects with the private sector.

Environmental and operational goals include reducing carbon emissions by 30%, increasing technology adoption by 75%, and improving operational efficiency by 10%. The strategy also seeks to align with international best practices to enhance sector competitiveness, focusing on cost efficiency, modern infrastructure, and safety.

“The new strategy contributes to achieving RTA’s strategic goals by removing barriers to doing business, simplifying regulations and requirements, upgrading the fleet to zero-emission vehicles, improving driver behaviour and vehicle performance by raising the efficiency and safety of operational operations, supporting SMEs in the business market, providing affordable technologies, and enhancing the sector’s readiness to accelerate the adoption of new technologies for future modes of transport,” said Mattar Al Tayer, Director General and Chairman of the Board of Executive Directors of the RTA.

Dubai’s commercial transport sector has seen substantial growth, driven by the expansion of e-commerce and its strategic position as a regional logistics hub. With 351,000 registered commercial vehicles and 9,699 companies, the sector has experienced a 34% compound annual growth rate over the past five years, contributing AED 8.5 billion to Dubai’s economy in 2021 and accounting for 3% of the emirate’s GDP in 2022. The sector has also generated approximately 242,000 jobs.