Strategic Position
Logistics and trade are the circulatory system of the UAE economy. The federation’s geographic position — at the intersection of trade routes connecting Asia, Europe, and Africa — has been leveraged through decades of infrastructure investment to create one of the most capable and efficient logistics ecosystems in the world. The UAE handles a disproportionate share of global trade relative to its size: non-oil foreign trade has surpassed AED 2.88 trillion, and the national target is to reach AED 4 trillion, reflecting the ambition to expand the UAE’s role as the preeminent trade and re-export hub between the major economic blocs.
The sector’s infrastructure spans world-class seaports, airports, free zones, warehousing facilities, road networks, and the emerging national railway. Together with a liberal trade regime, minimal customs friction (aided by the UAE’s extensive network of free trade agreements and double taxation treaties), and a deep pool of logistics service providers, this infrastructure enables the UAE to serve as a gateway for goods flowing between manufacturing centres in Asia and consumer markets in the Middle East, Africa, and Europe.
DP World: The Global Port Operator
DP World, headquartered in Dubai and majority-owned by the Dubai government through the Port, Customs and Free Zone Corporation, is one of the three largest port operators in the world by throughput volume. The company operates a portfolio of over 80 marine and inland terminals across six continents, handling approximately 10 percent of global container traffic.
DP World’s flagship asset is Jebel Ali Port in Dubai — the largest port in the Middle East and one of the top ten container ports globally. Jebel Ali’s integrated model, combining port operations with the adjacent Jebel Ali Free Zone (JAFZA), creates a seamless ecosystem where goods can be imported, stored, processed, assembled, and re-exported with minimal regulatory friction. JAFZA hosts over 8,000 companies, including multinational corporations that use the zone as their regional logistics and distribution base.
DP World has evolved beyond traditional port operations into an end-to-end supply chain solutions provider. The company’s acquisitions and investments span logistics technology, freight forwarding, customs brokerage, and trade finance, reflecting a strategy to capture value across the entire trade journey rather than only at the port gate. The company was delisted from Nasdaq Dubai in 2020, returning to full government ownership — a move that provided strategic flexibility for long-term investment decisions.
Khalifa Port and AD Ports Group
Khalifa Port, located in the Khalifa Industrial Zone Abu Dhabi (KIZAD), is Abu Dhabi’s primary commercial port and the centrepiece of the capital’s logistics infrastructure. Operated by AD Ports Group, Khalifa Port has been developed as a semi-automated deep-water facility capable of handling container, bulk, and roll-on/roll-off cargo. KIZAD, the adjacent industrial and logistics free zone, provides warehousing, manufacturing, and logistics space for companies serving the Abu Dhabi market and using the port as an export gateway.
AD Ports Group, listed on the Abu Dhabi Securities Exchange, has expanded aggressively through acquisitions and concessions in Egypt, Pakistan, Kazakhstan, Mozambique, Tanzania, and other markets. The company’s strategy mirrors DP World’s evolution from a port operator to an integrated logistics and industrial zone manager, but with a focus on emerging markets and strategic geographies aligned with Abu Dhabi’s foreign policy and investment interests.
AD Ports Group also operates the Musaffah Port (serving Abu Dhabi’s industrial base), Zayed Port (the original Abu Dhabi port, now oriented toward cruise and leisure), and a portfolio of inland logistics facilities and maritime services.
Fujairah: Bunkering and Energy Logistics
Fujairah, located on the UAE’s eastern coast with direct access to the Gulf of Oman and the Indian Ocean (bypassing the Strait of Hormuz), has developed into one of the world’s largest ship bunkering hubs and a critical node in global energy logistics. The Port of Fujairah handles crude oil, refined products, and LNG, with extensive tank farm storage capacity operated by VTTI, Brooge Energy, Gulf Petrochem, and other terminal operators.
Fujairah’s strategic value lies in its geographic position outside the Arabian Gulf, providing an alternative loading and discharge point that reduces transit risk associated with the Strait of Hormuz. ADNOC operates the Habshan-Fujairah oil pipeline, which transports crude from Abu Dhabi’s onshore fields directly to Fujairah for export loading, diversifying the UAE’s export routes.
Etihad Rail: The National Railway
Etihad Rail is the UAE’s national railway programme, designed to connect the federation’s major industrial, commercial, and population centres through a freight and passenger rail network spanning approximately 900 kilometres. The railway’s first phase, operational since 2016, transports sulphur granules from ADNOC’s Shah and Habshan gas processing plants to export facilities at Ruwais.
The second phase — currently the most active construction programme — extends the network from Ghuweifat on the Saudi border through Abu Dhabi, Dubai, Sharjah, and onward to the Port of Fujairah. This phase will enable bulk freight transport across the federation, reducing truck traffic on highways, lowering logistics costs, and cutting carbon emissions from road-based freight. Passenger services are planned for subsequent phases, eventually connecting Abu Dhabi and Dubai in approximately 50 minutes.
Etihad Rail is strategically significant beyond its direct economic impact. It creates the conditions for multimodal logistics integration — connecting ports, industrial zones, airports, and population centres through a single rail network that can interface with the broader GCC railway programme linking the UAE to Saudi Arabia, Bahrain, Kuwait, Qatar, and Oman.
Free Zones and Trade Infrastructure
The UAE operates over 40 free zones offering 100 percent foreign ownership, customs duty exemptions, streamlined regulatory processes, and dedicated infrastructure. These zones are integral to the trade sector, providing the legal and logistical framework for the re-export economy that accounts for a significant share of the UAE’s non-oil trade volumes.
Beyond JAFZA and KIZAD, notable free zones include Dubai Multi Commodities Centre (DMCC — the world’s largest free zone by number of registered companies), Dubai Airport Freezone (DAFZA), Sharjah Airport International Free Zone (SAIF Zone), and Hamriyah Free Zone. Each zone serves a distinct cluster of industries and trade activities, from precious metals and diamonds (DMCC) to aviation logistics (DAFZA) to industrial manufacturing (Hamriyah).
Trade Policy and Agreements
The UAE’s trade policy framework combines GCC Customs Union membership with an expanding network of bilateral and multilateral trade agreements. The Comprehensive Economic Partnership Agreement (CEPA) programme has produced agreements with India, Israel, Turkey, Indonesia, and other markets, reducing tariffs and trade barriers on a bilateral basis. These agreements complement the UAE’s existing network of over 100 double taxation treaties and investment protection agreements.
The Ministry of Economy coordinates trade policy, while the Federal Customs Authority manages customs procedures and harmonisation. Dubai Customs and Abu Dhabi Customs operate as the primary implementation agencies at the emirate level, with both investing heavily in digital customs processing, risk-based inspection, and blockchain-enabled trade documentation.
Outlook Under We the UAE 2031
The AED 4 trillion non-oil trade target by 2031 is the single most ambitious quantitative target in the UAE logistics and trade sector. Achieving it requires the completion of Etihad Rail, continued expansion of port capacity, deepening of free zone ecosystems, execution of CEPA agreements, and the integration of digital trade platforms that reduce friction across the supply chain. The logistics and trade sector is the physical expression of the UAE’s global connectivity ambition — the infrastructure through which goods, commodities, and materials flow between the world’s producing and consuming regions, with the UAE positioned at the centre.