• | 1:00 pm

Dubai’s strategy for commercial transport will add $4.5 billion to the economy

The strategy aims to boost the adoption of technology in infrastructure, cut carbon emissions, and enhance operational efficiencies

Dubai’s strategy for commercial transport will add $4.5 billion to the economy
[Source photo: Krishna Prasad/Fast Company Middle East]

Transport and logistics are pivotal in Dubai’s burgeoning economy. The emirate has long recognized the importance of creating advanced infrastructure to facilitate the smooth and efficient movement of goods and services regionally and globally. 

This is evident in its ambitious 2030 Vision for Commercial and Logistics Land Transport, which involves a substantial investment of $4.5 billion into the economy. 

The strategy, launched by Mattar Al Tayer, the Director General and Chairman of the Board of Executive Directors of the Roads and Transport Authority (RTA), said the comprehensive plan, endorsed by the Dubai Executive Council, aims to significantly enhance the economic impact and efficiency of the emirate’s land transport and logistics sector.

“The new strategy focuses on regulating and governing the commercial transport sector in the emirate. It aims to identify developmental and innovative opportunities in the land-based commercial transport and logistics sector and to ensure that the sector’s objectives, legislation, and policies are incorporated through various implementable projects and programs. Additionally, it seeks to identify prospects for investment and partnerships with the private sector,” Al Tayer said.

The strategy aims to double the sector’s direct economic contribution to $4.536 billion, boost the adoption of technology in infrastructure by 75%, cut carbon emissions by 30%, and enhance operational efficiencies by 10%. This comes when Dubai’s commercial transport sector is witnessing robust growth, fueled by the boom in e-commerce and Dubai’s strategic position as a key logistics hub for the region. 

With 351,000 commercial vehicles registered and 9,699 companies operating within this sphere, the sector has recorded a 34% compound annual growth rate over the past five years. In 2021 alone, it contributed $2.3 billion directly to Dubai’s economy, equivalent to 3% of the emirate’s GDP, and supported around 242,000 jobs.

Additionally, the strategy outlines 17 key projects to foster sector growth, enhance competitiveness through digitalization, and encourage the adoption of innovative technologies and practices. Among these initiatives are developing digital platforms for the commercial transport and logistics sector, value-added permits, heavy freight services platforms, driver behavior monitoring systems, and heavy and light truck fleet updates.

Furthermore, the strategy proposes introducing autonomous trucks, establishing a commercial transport and logistics forum, joining international federations, and creating a National Committee for Small Vehicles.

This strategic initiative aligns with six other specialized strategies, underscoring Dubai’s commitment to traffic safety, self-driving transport mobility, zero-emission public transport, asset management, investment, and digitization. 

More Top Stories:

FROM OUR PARTNERS