Distribution Business Articles

  During a recent interview with DHL, some interesting business growth issues were discussed.  Prime among them is the 10 - 20 percent increase in demand for pharmaceuticals.  This growth is being fueled by two things:

1. The cash rich regions of the Middle East benefiting from cash flows resulting form oil paying $100 plus per barrel
2. Trade promoting tax free zones like the Jebel Ali Free Zone, long noted as an international trade hub is now adding international pharmaceutical products to its line up.

What prompted you to enter the pharmaceutical logistics market?

(DH) We noticed that there was a great demand for healthcare products and services. Pharmaceutical manufacturers were seeing a 10 per cent to 20 per cent rise in demand for pharmaceutical products in the region. Dubai was also in the initial stages of positioning itself as a health tourism hub through the Healthcare City and we foresaw unprecedented demand for healthcare services in the UAE as more people come to the country for treatment.
The development of the Jebel Ali Free Zone as a regional and international logistics hub, as well as the announcement of Dubai World Central, helped to raise the profile of the Middle East as a major gateway for consumer products. Pharmaceutical companies were increasingly looking at the Middle East as a preferred hub to provide the linkages needed with their wider markets globally.

DHL sees huge growth in pharmaceutical logistics

The Jebel Ali Free Zone has moved a long way from heavy equipment, oil related products and consumer electronics and is now moving into everything from drugs to fight malaria and aids to promotional products.