Egypt rose six places to number 14 in Kuwait-based global logistics company Agility’s 9th Emerging Markets Logistics Index for 2018 thanks to “bold economic reforms” according to an e-mailed press release.
“Egypt’s jump was the largest of any country in the 2018 Index,” read the press release.
Egypt also leapt 26 places to number 21 on the index that measures business conditions, the biggest leap by any country in any category since Agility began publishing the Index.
The report surveys over 500 logistics professionals and assesses the performance of 50 emerging markets, observing trends that are set to impact global trade and businesses throughout the year.
The Index, which is compiled by research firm Transport Intelligence (Ti), is based on emerging markets countries’ size, economic strength, infrastructure, transport connections and business climate.
Egypt improved by three spots to number 20 in infrastructure and transport connections, and by six spots to number 17 on the list of emerging markets with the most potential to grow.
“Egypt’s dramatic gains appear to be driven by its decision to devalue its currency, cut subsidies, improve vital infrastructure and work closely with the IMF on reforms intended to boost its competitiveness, lure fresh investment and revive tourism,” the report said.
China and India rank number 1 and 2 respectively in the overal emerging markets rankings.
“For business conditions, the United Arab Emirates, Oman and Bahrain outclass all other countries. Saudi Arabia is [number] eight; Kuwait is [number] 16,” the release said.
On infrastructure and transport connections, UAE ranks number one, Bahrain number five, Oman number six, and Saudi Arabia number seven.
According to the report, Logistics professionals see that cheap labor is becoming less of an attraction as a driver for growth in emerging markets, in favor for factors such as economic growth, foreign investment, trade volumes, location and transport infrastructure.
“Emerging markets' growth prospects look brighter than they have in years to logistics industry executives, who say small and medium-sized companies are the most likely to benefit from fresh acceleration of those economies,” the release read.