The United Arab Emirates (UAE) has been recognized as having the best business climate among emerging economies, excelling particularly in logistics opportunities and digital readiness. This information comes from the 2025 Agility Emerging Markets Logistics Index, which assesses 50 countries based on their logistics strengths, business climate, and digital capabilities—key factors for logistics providers and investors.

In the report, the UAE secured the third position globally in overall logistics, trailing only behind China and India. It performed strongly across all four index categories: Domestic Opportunities, International Opportunities, Business Fundamentals, and Digital Readiness. The UAE’s improvement in the domestic opportunities sub-index is attributed to its increasingly urbanized population, which boosts logistics activities, alongside growth in the domestic parcels market driven by e-retail and an increase in industrial facility clustering.

The UAE also ranked first globally in business fundamentals, benefiting from effective management of inflation, access to credit, and a reliable legal system that combats corruption. It showed remarkable progress in air and sea freight market growth and improved its maritime and airport connectivity, ensuring strong integration with global trade networks.

In terms of digital readiness, the UAE ranked second globally, reflecting significant advancements in digitalization and progress towards sustainable practices. The index underscores the UAE’s focus on establishing itself as a global trade hub in collaboration with other Gulf countries, all of which are investing heavily in infrastructure, AI, and workforce development. John Manners-Bell, chief executive of Ti, remarked on the resilience of Gulf economies amidst global economic challenges, highlighting their strategic investments in transport and energy transition.

The report indicates a competitive landscape among the Gulf countries, with all six ranking within the top eleven for business conditions. The UAE led the pack, followed by Saudi Arabia in third place and Qatar in fifth. International logistics opportunities were led by China and India, with the UAE also appearing among the top competitors in domestic logistics.