**Dubai**: Over 62% of logistics professionals report supply chain restructuring as inflation and impending tariffs loom. A significant majority reflect on recession risks, illustrating the challenges faced by global trade, as highlighted in the 2025 Agility Emerging Markets Logistics Index.
In Dubai, United Arab Emirates, as of 18th February 2025, over 62% of logistics industry experts have reported undertaking restructuring efforts within their supply chains. This strategic shift is aimed at safeguarding against inflation, impending trade tariffs, and the potential of a global economic downturn, according to insights from the 2025 Agility Emerging Markets Logistics Index. The report specifically highlights concerns surrounding anticipated tariff increases from the United States and a surge in exports from China.
The findings come from a survey conducted with 567 executives, which reveals that nearly 55% of respondents consider a worldwide recession either likely or certain. Furthermore, close to 82% indicate that tariffs and other forms of trade protectionism have had significant effects on their supply chains, while 72% claim that risks associated with emerging markets have escalated in the past year. “There is caution and uncertainty among shippers, carriers, freight forwarders, and other stakeholders concerning geopolitical factors that drive up costs, affect trade volumes, and alter supply chains,” said Tarek Sultan, Vice Chairman of Agility, while speaking to PR Newswire. He also noted that international companies are continually shifting their production locations while reassessing their investment plans in search of sustainable growth paths.
The index represents a comprehensive annual overview of industry sentiment and ranks the 50 leading emerging markets worldwide. It assesses countries based on logistics strength, business climate, and digital maturity, which are critical for logistics providers, freight forwarders, air and sea freight companies, traders, and investors.
Significantly, the 2025 index offers an in-depth analysis of the economies of the Gulf Cooperation Council (GCC) states, which are strategically positioning themselves as global trading hubs through investment in infrastructure, artificial intelligence, energy transition, and workforce development. The report concludes that despite rising risks for global supply chains, the United Arab Emirates and Saudi Arabia, among other Gulf nations, have emerged as “beacons of stability” and resilience.
The stability at the top of the index rankings contrasts with volatility observed further down. The top ten ranked countries include China, India, the United Arab Emirates, Saudi Arabia, Malaysia, Indonesia, Mexico, Qatar, Thailand, and Vietnam. Conversely, countries like Colombia have seen improvements, while Nigeria, Bangladesh, and Ukraine have experienced declines in their rankings.
All six GCC states feature among the top 11 countries in terms of business conditions, with the United Arab Emirates once again leading in business climate rankings. Saudi Arabia is placed third, while Qatar is fifth. In terms of digital maturity, China, the United Arab Emirates, Malaysia, Qatar, and Saudi Arabia are recognised as the most advanced.
In the realm of international logistics capabilities, China and India continue to dominate, with Mexico, Indonesia, and Saudi Arabia following closely. Government entities are also adapting to these trends, and nearly 65% of survey respondents indicated they believe their companies are on track to meet net-zero targets.
The index highlights various rankings across regions, such as the Middle East and North Africa, Sub-Saharan Africa, Asia, and Latin America, showcasing a kaleidoscope of operational benchmarks.
John Manners-Bell, Chief Executive Officer of Transport Intelligence, the firm behind the index, stated, “The supply chain industry is entering a new era where the ability to respond to macroeconomic and geopolitical events will be critical.” He emphasised that the looming possibility of tariffs and trade wars will compel shippers to reassess the resilience of their production, offshoring, and sourcing strategies, making effective and timely responses essential for logistics providers.
Agility, the firm behind the emerging markets logistics index, is noted for being a leading provider of supply chain services, employing over 60,000 personnel across six continents. The company’s diverse portfolio includes businesses involved in air services, fuel logistics, and logistics park development, among other sectors, underpinning their commitment to innovation and sustainability in supply chain management.
Source: Noah Wire Services
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