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In general, the transportation and logistics sector is defined to include airlines and airfreight, shipping, road and rail transport and the associated infrastructure and services. That's why this sector is seen as a very important factor in a country's overall foreign trading competitiveness. In 2007 it generated USD 3.4trillion of revenue globally. By 2012, the global transportation industry is forecasted to reach USD 4 trillion. The importance of transportation and logistics sector is increasing in the six GCC countries also, which include Saudi Arabia, United Arab Emirates, Kuwait,Bahrain, Qatar and Oman. Over the past several decades, the GCC governments have been promoting the economic diversification policies to reduce reliance on the oil reserves, resulting in the increase of foreign trade and demand of transportation and logistics services. As of 2011, overall GCC logistics sector is estimated at around USD 35 billion, of which Saudi Arabia, UAE and Oman account for 85% share. Among the six GCC countries, the UAE is now the most preferred transport and logistics center for East-West commerce. To develop the nation into a prime logistics hub in the Middle East, the UAE has embarked upon several pioneering efforts such as the region’s first free trade zone - Jebel Ali Free Zone (JAFZA),most sophisticated sea port - Jebel Ali Port, and state-of-the-art cargo transhipment airport - Al Maktoum International Airport. Today the UAE is regarded as the most advanced logistics hub in the GCC. In 2012, the World Bank ranked the UAE at 17th in the overall Logistics Performance Index (LPI) rankings, ahead of other prominent countries such as Norway, Australia, Ireland, New Zealand, Italy and South Korea as well as all other Middle Eastern countries. Inspired by the success of the UAE, the other GCC countries have recently started to develop their own logistics infrastructure facilities to emerge as alternative regional hubs. Among the GCC countries, Saudi Arabia, the largest nation in the Gulf by area, population, and economy, has also realized the importance of the transportation and logistics infrastructure in a country’s prosperity. That's why Saudi Arabia is now actively conducting a variety of related projects such as the development of industrial zones, the expansion of capabilities of important sea ports and the development of a nation-wide rail network for cargo like Saudi Landbridge and the North-South Line.


In general, the transportation and logistics sector is defined to include airlines and airfreight, shipping, road and rail transport and the associated infrastructure and services. That's why this sector is seen as a very important factor in a country's overall foreign trading competitiveness. In 2007 it generated USD 3.4trillion of revenue globally. By 2012, the global transportation industry is forecasted to reach USD 4 trillion. The importance of transportation and logistics sector is increasing in the six GCC countries also, which include Saudi Arabia, United Arab Emirates, Kuwait,Bahrain, Qatar and Oman. Over the past several decades, the GCC governments have been promoting the economic diversification policies to reduce reliance on the oil reserves, resulting in the increase of foreign trade and demand of transportation and logistics services. As of 2011, overall GCC logistics sector is estimated at around USD 35 billion, of which Saudi Arabia, UAE and Oman account for 85% share. Among the six GCC countries, the UAE is now the most preferred transport and logistics center for East-West commerce. To develop the nation into a prime logistics hub in the Middle East, the UAE has embarked upon several pioneering efforts such as the region’s first free trade zone - Jebel Ali Free Zone (JAFZA),most sophisticated sea port - Jebel Ali Port, and state-of-the-art cargo transhipment airport - Al Maktoum International Airport. Today the UAE is regarded as the most advanced logistics hub in the GCC. In 2012, the World Bank ranked the UAE at 17th in the overall Logistics Performance Index (LPI) rankings, ahead of other prominent countries such as Norway, Australia, Ireland, New Zealand, Italy and South Korea as well as all other Middle Eastern countries. Inspired by the success of the UAE, the other GCC countries have recently started to develop their own logistics infrastructure facilities to emerge as alternative regional hubs. Among the GCC countries, Saudi Arabia, the largest nation in the Gulf by area, population, and economy, has also realized the importance of the transportation and logistics infrastructure in a country’s prosperity. That's why Saudi Arabia is now actively conducting a variety of related projects such as the development of industrial zones, the expansion of capabilities of important sea ports and the development of a nation-wide rail network for cargo like Saudi Landbridge and the North-South Line.