RIYADH: The Gulf Cooperation Council countries can lead the global logistics arena by adopting a “digital-first” approach, according to a report by Strategy & Middle East, part of the PwC network.
This would support the region’s transformation from digital technology “users” to “innovators”, the report, titled Modernizing Gulf Logistics Through Digitization, added.
The report said Gulf countries lag behind their global counterparts due to three main factors — the lack of modern and integrated infrastructure, insufficient service quality and legacy processes.
Despite the pandemic's repercussions, the global transport and logistics sector is expected to grow to around $12.8 trillion in 2025, compared to $8 trillion in 2020, it said.
“The logistics sector is critical to local, regional, and global economies, as it supports supply chains and facilitates international trade flows,” said Haroon Sheikh, a partner with Strategy & Middle East.
“It is essential to businesses and individuals in all industries,” he added.
According to the report, the region needs to do a number of things including giving digitization an integral role in policy, using digitization to replace legacy processes, streamlining logistics with digitization within enabling ecosystem, and enabling digitization for gateway ports.
