Three major UAE entities have joined the World Logistics Passport, an initiative designed to boost trade between developing markets.
Etihad Credit Insurance (ECI), Dubai Multi Commodities Centre (DMCC) and Flydubai have joined the initiative that aims to increase resilience in global supply chains and remove trade barriers facing developing economies, according to a statement on Tuesday from DP World, which is already part of the initiative.
"We welcome ECI, DMCC and flydubai to the WLP team, mobilising infrastructure and expertise to make trade quicker, easier and more cost-effective," Sultan Ahmed bin Sulayem, group chairman and chief executive of DP World, said. "South-south trade has substantial potential for generating more growth as developing countries in Africa, Asia and South America move to bolster their trade volumes with each other."
Unlocking the trade benefits will allow countries to gain access to new markets and increase market share in key export products in developing economies, the Dubai-based ports operator said.
"The transformation of logistics, supply chains and distribution channels through projects such as this one without a doubt add immeasurable value to world trade and unlock a host of opportunities," Ahmed Bin Sulayem, executive chairman and chief executive of DMCC, said.
The World Logistics Passport aims to tap into more than 20 markets, representing 54 per cent of global gross domestic product. By 2023, the initiative is projected to have an impact of about 2 per cent on global trade.
"We are delighted to support the Dubai Silk Road initiative and we look forward to providing cargo solutions across the Flydubai network and beyond through our partnership with Emirates SkyCargo," Ghaith Al Ghaith, chief executive of Flydubai, said.
Colombia, Senegal and Kazakhstan have formally joined the initiative. Brazil, Uruguay and South Africa have also registered as partners.
The initiative will help "UAE-based businesses ... obtain maximum possible benefits from their trading operations," Massimo Falcioni, chief executive of ECI, said.
The initiative was launched at the 2020 World Economic Forum in Davos, bringing together Dubai Customs, DP World, Emirates and Dnata. A pilot project that has been operational since July 2019, it has already increased trade between members by more than 10 per cent, according to the statement.
Benefits range from increased trade revenue for businesses, increased fee generation for state trade authorities, tax revenues, connection of customs departments and global knowledge sharing networks.