Dubai unveils major initiative to boost trade between Africa, Latin America and Asia
Dubai has launched the World Logistics Passport, a major initiative to boost trade between Africa, Latin America and Asia, at the World Economic Forum summit in Davos.
The initiative links Customs World, DP World, and Emirates Group to enhance connectivity through Dubai and, through expertise sharing and process development, directly between partner countries.
A pilot project operational since July has increased trade by participants by 10 percent, a statement said.
It added that the World Logistics Passport has been designed to overcome the non-tariff trade barriers, such as logistics inefficiency, that currently limit the growth of trade between developing markets.
South-South trade is already worth an estimated $4.28 trillion annually, more than half of total developing countries exports in 2018, according to the World Trade Organization. But many countries in Asia, Latin America and Africa have much smaller market shares in key export products in each other’s markets compared to their shares in developed countries, indicating the potential for substantial further growth, boosting prosperity.
Designed as a points loyalty scheme, the initiative has been set up to incentivize companies and traders to use Dubai’s logistics facilities in return for cost and time savings and enhanced customs clearances.
This aims to increase the ease of moving goods in Dubai and foster more optimal direct trade routes between Latin America, Africa and Asia.
Globally, the World Logistics Passport will enable partner countries to leverage the expertise of Dubai’s institutions, such as DP World’s global logistic network of ports and economic parks, Emirates Group’s worldwide Dnata and SkyCargo network, and Dubai’s expertise in Customs and trade governance.
Attending the World Economic Forum in Davos, Sheikh Ahmed bin Saeed Al Maktoum, president of Dubai Civil Aviation Authority and chairman and CEO of Emirates Airline and Group, said, “Through this strategy, we will offer many privileges and services that will help connect international markets by mobilizing Dubai’s resources and infrastructure.
“The investments we made in Dubai’s airports, ports and free zones have made the city a global logistics hub and a bridge between the east and the west. The Dubai Silk Road strategy responds to the changes in international trade by offering new state-of-the-art logistics services using the latest smart applications.”
Sultan bin Saeed Al Mansoori, Minister of Economy of the UAE, added, “These efforts are aimed at improving quality of service and attracting a higher share of international trade at a time when Dubai is preparing to host Expo 2020.The World Logistics Passport marks the beginning of the implementation of the Dubai Silk Road strategy that will lead to a new phase of economic growth. We aim to further boost Dubai’s position as a global economic and business hub, powered by our exceptional connectivity and logistics.”
Sultan Ahmed bin Sulayem, group chairman and CEO, DP World, and Chairman of Ports, Customs and Freezone Corporation (PCFC) in Dubai said, “The World Logistics Passport will make trade through Dubai quicker, easier and more cost-effective, and help develop the economies of our partner countries.”