The UAE offers the best climate for business and outperforms almost all other emerging economies when it comes to logistics opportunities and digital readiness, according to the 2025 Agility Emerging Markets Logistics Index.
The 50-country index shows the UAE improving its overall competitiveness based on domestic and international logistics strengths, business climate and digital readiness, all of which are important factors to logistics providers, freight forwarders, air and ocean carriers, distributors and investors.
UAE ranks third globally in logistics
The UAE was among the top six in all four index categories and third globally in the overall ranking, falling behind only China and India. The UAE has been a high performer on the index since its initiation across all four sub-indices of the index: Domestic Opportunities, International Opportunities, Business Fundamentals and Digital Readiness.
The UAE moved up one position in the domestic opportunities sub-index compared with 2023. This improvement was due in part to an increasingly urbanized population, supporting more intensified logistics activities. Further supporting the improvement was the growth in the domestic parcels market, supported by more e-retail activity, and increased clustering of industrial facilities, benefiting economic, and consequently, logistics output.
UAE ranks first globally in business fundamentals
The UAE also performed very strongly in most elements of the international opportunities sub-index. In particular, it made the most progress in air and sea freight market growth over the past year and forecasted growth over the next five years. It also moved up in maritime and airport connectivity, ensuring it remains well-integrated with the global trading community
The UAE also topped the rankings of the business fundamentals sub-index. It scores strongly due to its control of inflationary pressures, access to credit and management of debt, in addition to its crackdown on corrupt practices, low business costs of crime and violence and a reliable police and justice system.
The UAE also performed very strongly in the digital readiness sub-index, emerging second globally. This index maps progress in terms of digitalization and progress towards the green revolution.
Read: Italian food exports to UAE to grow 10 percent in 2025, says Italian Trade Agency
Gulf countries emerge as global trade hubs
The 2025 index revealed that, individually and as a group, the six Gulf countries are positioning themselves as global trade hubs, investing heavily in infrastructure, AI, energy transition and workforce development. Despite increasing risk to global supply chains, the UAE, Saudi Arabia and other Gulf countries have become beacons of stability and resilience.
“Despite global economic headwinds and disruption to shipping lanes over the last year, the Gulf economies have proved exceptionally resilient. Diversification and their focus on investment in transport, the green energy transition, and other major infrastructure projects has laid the foundations for future growth,” said John Manners-Bell, chief executive of Ti.
Stability at the top of the 50-country rankings was accompanied by volatility and movement further down in the index. China, India, UAE, Saudi Arabia, Malaysia, Indonesia, Mexico, Qatar, Thailand and Vietnam ranked 1 through 10. Colombia leaped up the rankings while Nigeria, Bangladesh and Ukraine tumbled.
The six Gulf countries are all among the top 11 for business conditions: UAE again topped the rankings for best business climate; Saudi Arabia was 3rd and Qatar was 5th. The countries most digitally ready are China, UAE, Malaysia, Qatar and Saudi Arabia.
In international logistics opportunities, China, India, Mexico, Indonesia and Saudi Arabia ranked highest. In domestic logistics, the leaders this year were China, India, Indonesia, Saudi Arabia and UAE.
