Evaluation of the Logistics Performance Index between Saudi Arabia and the United Arab Emirates

Abstract

This study focused on the logistics performance index, which is considered the most important tool for evaluating the comparative global economic situation of countries, as it constitutes the pillar of international trade. When logistics systems are weak in efficiency or non-existent, the ability of countries to be globally competitive in trade among themselves and to win new markets is weakened, and thus affects the related economic development. By increasing production, the study addressed the developments of this indicator and its impact on economic development in Saudi Arabia and the United Arab Emirates. The study aims to show the importance of logistics and determine the level of logistics services and a descriptive analysis of the components of this indicator in the period 2007-2023. We noticed that the United Arab Emirates maintained its ranking and lead. At the level of the Middle East and North Africa region in this indicator, while Saudi Arabia ranked fourth in the Arab world, this confirms that this indicator is a measure that summarizes the performance of the logistics sector and that the importance of improving it leads to the growth of intra-trade between countries and their economic growth, especially in emerging economies compared to industrialized countries.

This study concluded that the success and progress in the ranking of the Logistics Performance Index in the world depends on the availability of advanced infrastructure, the effectiveness and efficiency of the customs clearance process, human resources with sufficient skills, and a good legislative and investment climate that helps attract foreign direct investment, and the geographical location of the logistics areas. On global maritime transport lines and its proximity to vital ports are among the most important signs of countries’ success in the field of logistics.