FedEx expects double-digit growth in Middle East
FedEx is expecting a double-digit growth this year from its operations in the Middle East region, a top official of the company said.
FedEx is expecting a double-digit growth this year from its operations in the Middle East region, a top official of the company said.
Despite easing economies in the region due to the global credit crunch, FedEx is optimistic a turnaround in the second half of the year will sustain the company’s robust growth in 2008.
“We have always had a double-digit growth year-on-year, that won’t change in 2009,” Hamdi Osman, FedEx senior vice-president for Europe, Middle East, Indian Subcontinent and Africa told Khaleej Times in an interview.
Osman said the overall transport and logistics business in the UAE is still quite healthy.
“If there is one industry that has not been affected that much by the crisis, it would be this industry. People still need to move products.”
Osman said that in general, the transport and logistics industry is staying afloat despite a marked dip in global trade.
“As a whole, we are not that much hit, but if you segment the business, the air freight segment is down by at least 10%. However, what we are seeing is a similar increase in road transport, which means customers are going for a cheaper mode of transportation to get their products to various destinations.”
Osman said that the industry typically experiences lower volumes during the first half of the year, but the situation is reversed in the latter part of the year when most inventories have dried up.
He said that as the various stimulus packages by governments worldwide begin to trickle into the economy, the trading of goods and services will surge on pent-up demand.
“We are anticipating the business to really pick up again towards the end of the year, which is why we have not cut back on our operations, or cancelled plans to expand the business.” Osman said FedEx’s operation in Dubai continues to be strong.
“Dubai is our hub in the Middle East, it is central to our business in the region.” FedEx in Dubai runs 13 MD-11 aircraft which fly at least 13 times weekly from Dubai to Paris and India and vice-versa.”
