UAE expands logistics network to boost supply chain resilience

The United Arab Emirates is expanding its integrated supply chain infrastructure in 2026, consolidating maritime, land, air, rail, and free zone operations to maintain global trade flows and enhance transit adaptability.

Transitioning from a traditional import-export hub into an end-to-end logistics platform, the nation now links manufacturing and storage directly with ports, airports, and border crossings. Regional developments are accelerating this multi-modal integration.

The Sharjah Ports, Customs and Free Zones Authority, in coordination with Oman Customs, recently established a logistics corridor connecting Sharjah’s coastal ports—including Khorfakkan, which is targeting a future capacity of 10 million containers—with Omani ports such as Sohar, Duqm, and Salalah. Domestically, Sharjah is developing the Al Dhaid Logistics Complex, spanning over 16 million square feet with an initial capacity of 1.5 million TEUs.

Rail freight is expanding cross-border capabilities following contracts signed by Hafeet Rail in February 2025 to design and build railway facilities in Oman. Within the UAE, Etihad Rail transported approximately 1.8 million tonnes of sulphur, over 4 million tonnes of aggregates, and 129,000 containers during 2026 across 11 terminals linking major industrial hubs and ports, including Khalifa Port and Jebel Ali.

Air freight capacity is expanding through the Abu Dhabi Airports Free Zone, which features the 8.3-million-square-metre Al Falah Logistics Park and a East Midfield cargo terminal set to handle 1.5 million tonnes annually upon completion in 2027. On the east coast, Fujairah Terminals managed over 70,000 TEUs and 100 cargo vessels during recent regional disruptions, serving as an alternative trade route alongside planned developments at Rugeilat Port and Dibba Al Fujairah.

In Dubai, the Dubai Logistics Corridor continues to bridge sea and air freight between Jebel Ali Port and Al Maktoum International Airport. Concurrently, Jebel Ali Free Zone (Jafza) attracted Dhs854 million in new investments during the first four months of 2026, expanding facilities across manufacturing, logistics, healthcare, and food production.

Digital tracking infrastructure and platforms such as ADDED, which expanded its partner network to over 30 logistics operators in 2026, enable real-time cargo rerouting and emergency response coordination.

These operational capabilities contributed to a 3% growth in the UAE's real GDP in the first quarter of 2026 to Dhs485 billion at constant prices, while non-oil foreign trade reached a record Dhs1.937 trillion in the first half of the year.

The enhanced logistics ecosystem continues to attract major multinational firms, including healthcare provider Novo Nordisk, which established one of its three global distribution hubs in the country.

These developments reflect the synergy between ports, airports, railways, roads, free zones, storage facilities, and digital systems in facilitating trade.

This multi-route framework enhances cargo accessibility, rerouting, storage, manufacturing, re-exportation, and distribution capabilities, placing supply chain resilience at the core of the UAE's economic development.

 WAM