Oman ranks 6th in emerging markets business fundamentals
23
Nov
Oman ranks 6th in emerging markets business fundamentals
Muscat – Oman jumped to 6th place in the area of business fundamentals and ranked overall as the 14th most competitive emerging market, according to the 2022 Agility Emerging Markets Logistics Index.
The UAE (3), Saudi Arabia (6) and Qatar (7) ranked among the top 10 emerging markets in the 2022 index, which was led by China (1) and India (2). Also performing well were Bahrain (15) and Kuwait (17).
The 2022 Agility Emerging Markets Logistics Index is the company’s 13th annual ranking of the world’s 50 leading emerging markets. The index ranks countries for overall competitiveness based on their logistics strengths, business climates and, for the first time, their digital readiness – factors that make them attractive to logistics providers, freight forwarders, air and ocean carriers, distributors and investors.
The global supply chain company Agility’s Emerging Markets Logistics Index includes a survey of 756 supply chain industry professionals.
The UAE outperformed all 50 countries in business fundamentals, an area where Gulf and MENA countries are clear leaders. Others near the top globally: Saudi Arabia (3), Bahrain (5), Oman (6), Morocco (9), Jordan (10), and Kuwait (12).
The UAE also ranked highest for digital readiness, a new category in the index. Digital readiness assesses digital skills, training, Internet access, e-commerce growth, investment climate, and ability to nurture startups, as well as sustainability factors such as renewable energy mix, lower emissions intensity and green initiatives.
Top 10 in digital readiness were: UAE, Malaysia, China, Saudi Arabia, India, Thailand, Qatar, Indonesia, Chile and Philippines. Kuwait (12) and Oman (15) also ranked highly.
“The connection between a country’s digital capabilities and growth prospects is undeniable,” Agility’s CEO Tarek Sultan said in a press statement on Tuesday.
He said, “The competitiveness of emerging markets countries will be determined by their ability to develop digitally skilled businesses and talent pools, and find the resolve to lower their emissions in ways that spur growth rather than sacrificing it.”
The importance of digital readiness was apparent in the survey. Logistics executives identified adoption of technology as the leading driver of economic and business growth for emerging markets. The top focus areas for their companies: technology and sustainability.
Most logistics industry executives see moderate-to-strong economic growth and little or no chance of recession in 2022, even without immediate relief from the snarled supply chains and sky-high ocean and air freight rates triggered by the COVID-19 pandemic.
Roughly two-thirds of the 756 industry professionals surveyed for the Agility index believe shippers will see cargo rates come down by the end of the year. Eighty-per cent see port bottlenecks, air capacity shortages and trucking issues easing by year end.
“The industry’s optimism reflects the fact that emerging economies are getting more resilient and figuring out ways to weather supply chain disruption,” Sultan said.
“If emerging markets can get better access to vaccines and give small business a boost, they can help power a broad, dynamic global recovery.”
China and India, the world’s two largest countries, held their spots at No 1 and 2 in the overall rankings. UAE, Malaysia, Indonesia, Saudi Arabia, Qatar, Thailand, Mexico and Turkey rounded out the top 10.
Transport Intelligence (Ti), a leading analysis and research firm for the logistics industry, compiled the Aiglity index.
John Manners-Bell, chief executive of Ti, said, “How quickly emerging markets recover from the crisis of the last two years is heavily reliant on the speed of the vaccine rollout, not least from the perspective of social, economic and political cohesion. At the same time, the links connecting these economies with western markets need to be reinstated if shippers are to be integrated back into the global trading system.”
He said, “Digitization will play an important role in facilitating frictionless cross-border movements, but in the long run the benefits of globalization will only be shared with emerging markets if supply chains and logistics can be made more resilient in the face of future crises.”
