Mattar Al Tayer, Director General and Chairman of the Board of Executive Directors of the Roads and Transport Authority (RTA), unveiled the details of the Dubai Commercial and Logistics Land Transport Strategy 2030. Along with a roadmap and associated projects, this strategy has been approved by the Dubai Executive Council, chaired by Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council.
The goal of the strategy is to double the direct contribution of the land transport and logistics sector to the emirate’s economy to Dhs16.8 billion, increase the rate of technology adoption in the infrastructure by 75%, reduce carbon emissions by 30%, and improve operational efficiency by 10%.
“The new strategy aligns with the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. It aims to enhance Dubai’s global competitiveness as a leading financial, business, and economic hub and support the Dubai Economic Agenda (D33) to position Dubai as one of the top three economic cities in the world.
The strategy focuses on regulating and governing the commercial transport sector in the emirate. It aims to identify developmental and innovative opportunities in the land-based commercial transport and logistics sector and to ensure that the sector’s objectives, legislation, and policies are incorporated through various implementable projects and programs. Additionally, it seeks to identify prospects for investment and partnerships with the private sector.” Al Tayer said.
“The Commercial and Logistics Land Transport Strategy was developed in collaboration with strategic partners, private businesses, distributors, and retailers in commercial transport. The strategy considers the application of international best practices and increasing the competitiveness of the commercial transport sector compared to developed countries to achieve three main objectives, namely: Cost efficiency by measuring the total cost per km, adopting modern technology in infrastructure and the average age of the fleet, and achieving safety and security by reducing the annual accident fatalities of the sector.
The new strategy contributes to achieving RTA’s strategic goals by removing barriers to doing business, simplifying regulations and requirements, upgrading the fleet to zero-emission vehicles, improving driver behaviour and vehicle performance by raising the efficiency and safety of operational operations, supporting SMEs in the business market, providing affordable technologies, and enhancing the sector’s readiness to accelerate the adoption of new technologies for future modes of transport.
Growth Pointers
The commercial transport sector in Dubai is experiencing significant economic growth, mainly due to the rapid expansion of e-commerce in the last two years. Dubai’s central position as a logistics hub for shipping and distribution in the region has contributed to this growth. There are currently 351,000 registered commercial vehicles and 9,699 companies in this sector.
Over the past five years, the commercial transport sector has seen a compound annual growth rate of 34%. In 2021, the direct contribution of this sector to Dubai’s economy was Dhs8.5 billion, accounting for 3% of the emirate’s GDP in 2022. Additionally, the sector has created approximately 242,000 jobs.
17 Projects
The Commercial and Logistics Land Transport Strategy has identified 17 projects that will contribute to supporting the sector’s and companies’ growth, increasing its competitiveness through digital markets and platforms.
The strategy focuses on using data and technology to support the development of companies with high potential, cooperating with the commercial transport sector to operate modern vehicles with better performance, and encouraging the adoption of innovative methods and future technologies.
The list of projects to be implemented in the future includes developing digital platforms supporting the commercial transport and logistics sector, value-added permits, no objection certificates, heavy freight services platform, driver behaviour monitoring, aftermarket platform, construction equipment rental platform, road freight data centre, and updates to heavy and light truck fleets.
The strategy identified projects such as the application of tachographs for heavy trucks, the provision of autonomous vehicles and towing trucks, the commercial transport and logistics forum, membership in relevant international federations, and the creation of the National Committee for Small Vehicles.
Strategy Alignment
Dubai’s commercial transport and logistics strategy aligns with six existing specialised strategies, including the Traffic Safety Strategy, the Self-Driving Transport Mobility Strategy, the Zero-Emission Public Transport Strategy, the Asset Strategy, the Investment Strategy, and the Digitization Strategy.
American Dollar Exchange Rate