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CONNECTING TRADE PROFESSIONALS WITH INDUSTRY INTELLIGENCE A N A LY S I S Logistics Outlook for Emerging Markets 2023 R E T A I L The Dairy King O P E D Navigating the climate insanity LOGISTICS & TRANSPORT MARCH 2023 CELEBRATING THE SUCCESS OF GROWTH IN THE SAUDI LOGISTICS INDUSTRY AWARDS 2023 KSA A KSA SPECIAL FEATURE
New IVECO T-WAY: high productivity and safety on off-road terrains With a complete line-up of AWD and PWD versions and the the 16-speed HI-TRONIX automated gearbox, the IVECO T-WAY features a host of functionalities such as Rocking Mode, Off-road Mode, Creeping Mode and 4 reverse gears to tackle with ease the toughest off-road conditions. The new architecture of the EBS system, combined with disc brakes on all wheels, greatly improves the vehicle’s performance and the driver’s safety in the most demanding applications. New IVECO S-WAY: high technology and efficiency for on-road missions The new IVECO S-WAY, with a completely redesigned and reinforced cab, offers a wide choice of Euro III/V diesel engines, a delivering class-leading power from 360 HP to 560 HP Euro III / 570 HP Euro V and superior fuel-saving devices, such as anti-idling feature, Ecoswitch, Ecoroll and Smart Alternator, 12-speed HI-TRONIX automated transmission with the most advanced technology in its category, electronic clutch and best-in-class torque-to-weight ratio. Drive the new way.
LOGISTICS NEWS ME | MARCH 2023 | 3 IN THIS ISSUE KSA LOGISTICS & TRANSPORT AWARDS 2023 17 OPED NAVIGATING THE CLIMATE INSANITY Key insights which are reflected on WEF23 and COP28 UAE Presidency by 10 Billion Solutions 20 ANALYSIS LOGISTICS OUTLOOK for Emerging Markets 2023 Africa & Middle East 26 FORECAST MANDIANT REPORTS CYBER SECURITY FORECAST 2023 Mandiant is aiding many enterprises in Saudi Arabia with cyber threat information, providing products, services, and other resources to help them protect against relevant threats 28 RETAIL THE DAIRY KING Vibha Mehta interacts with Patrick Stillhart, Chief Executive Officer, Saudia Dairy & Foodstuff Company (SADAFCO), where they discuss regional logistical activities 40 FREIGHT FORWARDING KINGDOM’S EXPRESS FREIGHT FORWARDER Mohammed Albayati, CEO of AJEX Logistics Services shares the story behind the company’s origins and future goals 44 WOMEN’S DAY CELEBRATING WOMANHOOD On the occasion of Women’s Day this month, Vibha Mehta interacts with Dana AlShahrani, Shift Manager, Delivery Station Regional Management at Amazon Saudi Arabia, giving a small tribute to women in the logistics industry 48 FINTECH FINMAZE on KSA’s FinTech Landscape and Their Stance At LEAP 2023 52 CONSULTANCY PRO PARTNER GROUP James-Elliot Square, Regional Business Development Manager at PRO Partner Group, speaks with Logistics News Middle East about the Saudi Arabian logistics market CELEBRATING THE SUCCESS OF GROWTH IN THE SAUDI LOGISTICS INDUSTRY 26 48 30
All rights reserved © 2022. Opinions expressed are solely those of the contributors. Logistics News ME and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Logistics News ME. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher. Images used in Logistics News ME are credited when necessary. Attributed use of copyrighted images with permission. All images not credited courtesy Shutterstock. Printed by UPP SUBSCRIBE subscriptions@bncpublishing.net For all commercial enquiries, contact jo@bncpublishing.net T +971 50 440 2706 PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196 LOGISTCSNEWSME CBNME.COM LOGISTICS NEWS ME @LOGISTICSNEWSME LOGISTICS NEWS ME CEO Wissam Younane wissam@bncpublishing.net DIRECTOR Rabih Najm rabih@bncpublishing.net GROUP PUBLISHING DIRECTOR Joaquim D'Costa jo@bncpublishing.net +971 50 440 2706 MANAGING EDITOR Kasun Illankoon kasun@bncpublishing.net EDITOR Vibha Mehta vibha@bncpublishing.net EDITORIAL DESIGN Christian Harb MARKETING EXECUTIVE Aaron Joshua Sinanbam aj@bncpublishing.net PHOTOGRAPHER Alexander Bungas EDITOR’S NOTE LNME Pheww, it is a KSA Special Issue! I was trying to put together this issue for the last two months, and now is the perfect opportunity to do so. This edition features some remarkable logistics and supply chain stories from the Kingdom's many industries. Most of you are aware that we travelled to Riyadh last month to honour the industry's top logistics professionals with the KSA Logistics & Transport Awards 2023 (p. 28). Here, we offer the coverage of the event as well as how thrilled the winners were. And while I was bringing this award ceremony to light, I was struck by how much potential the country possesses as well as how eager everyone is to see Saudi Arabia rise tall among the big players. Furthermore, it is believed that this month is dedicated to celebrating womanhood, but in my opinion, women need to be acknowledged every day. And that's not only because I'm a woman; there are many more outside who deserve to be praised for their unwavering dedication to their jobs. Dana AlShahrani's (p. 42) narrative is a good example; she is the first woman to occupy the role of shift manager at any Amazon Saudi Arabia facility. Last but not least, I hope everyone is looking forward to the LNME Forum 2023, which is scheduled to take place at Sofitel The Palm on March 20, 2023. We have organised some engaging panels for you to attend and learn about the latest advancements. Until then, happy reading! Vibha Mehta Editor vibha@bncpublishing.net
10 | LOGISTICS NEWS ME | MARCH 2023 WWW.CBNME.COM REGIONAL NEWS LNME H aving been the first organisation in the region to be awarded the prestigious IIP Platinum Accreditation by Investors in People (IIP) in 2019, AD Ports Group announced today that it has retained its ‘We Invest in People’ platinum-level accreditation for the fourth consecutive year, following a thorough strategic review assessment. This prestigious accreditation is the highest accolade the ‘Investors in Peo- ple’ bestows and is the highest that can achieve against the IIP standard. Two per cent of 50,000 participating organi- sations from 66 countries reached this level. It acknowledges the Group for the clarity of its vision and high-performing culture that consistently prioritises a healthy and highly productive work environment by ensuring best-practice employee engagement, continuous up- skilling, and improved well-being. AD Ports Group expanded its opera- tions in 2022 with significant invest- ments and joint ventures in global markets. Despite its rapid growth, the group has succeeded in maintaining an agile work culture that provides employees with opportunities to learn and grow in their chosen careers and ensures engagement and retention. This has consequently contributed to the Group’s and its employees’ overall success. Maitha Al Marar, Group Chief Human Resources Officer, AD Ports Group, said, “AD Ports Group is delighted to have consistently retained our ‘We In- vest in People Platinum accreditation. The ‘We Invest in People’ framework benchmarks us against the best world- wide. This prestigious international accolade demonstrates our world-class dedication to successful people man- agement. It also indicates the strength of the leadership that starts with the GCEO and cascades down to all em- ployees at different levels across the Group’s corporate functions and busi- ness clusters and the focus on setting the proper governance to ensure con- sistency of practices. “As a leading industry, trade, and logistics organisation, AD Ports Group is well-known for being an employer of choice, attracting and retaining the best talent worldwide. We are committed to continuing investing in initiatives that support our people’s aspirations and promote a culture of pride among our people for being part of our rewarding work environment where their personal and professional well-being is a top priority.” To achieve platinum accreditation, AD Ports Group has consistently demon- strated clear communication of com- pany objectives across all levels of the business and motivated employees to work towards these goals. Furthermore, the Group fosters a culture of trust and responsibility, where employees can take ownership of their roles and are empowered to make decisions. IIP has acknowledged AD Ports Group’s remarkable transformation in 2022, going from a local company to an international organisation. The IIP framework defines what it takes to lead, support, and manage people effectively to achieve sustain- able results. AD PORTS GROUP RECEIVES WORLD-CLASS RECOGNITION FOR OUTSTANDING INVESTMENT IN EMPLOYEES
LOGISTICS NEWS ME | MARCH 2023 | 11 REGIONAL NEWS A udi Volkswagen Middle East (AVME) announces DHL Global Forwarding as its new warehousing partner for the entire spare parts supply chain in the Middle East for the Volkswagen and Audi brands. Danzas AEI Emirates LLC, the joint venture between DHL Global Forwarding and Al Tayer Group, will support operations and management. The collaboration has established a new AVME Parts Distribution Centre at Dubai World Central. It is a dedicated warehouse for eight regional markets, providing Volkswagen and Audi cus- tomers more flexibility and shorter turnaround times. The Parts Distribution centre will serve UAE, Oman, Saudi Ara- bia, Kuwait, Bahrain, Qatar, Jordan, and Lebanon. “A strong and fast supply chain is a key element of the automotive business. It allows our dealer network to ensure the best aftersales service to our customers. With a strong increase in new car sales in 2022 in the region, it was necessary to upscale our parts distribution process to keep improving our service delivery to customers. This collaboration will sup- port the growth of Volkswagen and Audi in the Middle East,” comments Benoit Tiers, CEO of Audi Volkswagen Middle East. Amadou Diallo, CEO of DHL Global Forwarding Middle East & Africa, added, “We are very proud to announce our col- laboration with Audi Volkswagen Middle East and look forward to combining our strengths to benefit customer service delivery. As the world’s leading logistics company, we combine our proven track record in providing the best logistics so- lutions with exceptional leadership quali- ties that a fast-paced industry like ours requires to maintain our strong position in the market. An example of this is our recent progress towards a sustainable future.” The new Center is part of the region’s first-ever Electric Vehicle and battery logistics hub, the DHL EV Center of Ex- cellence. This was built by DHL Global Forwarding and developed in close co- operation with DHL Customer Solutions & Innovation team EV. “The new Center is very valuable to us and ensures that our logistics depart- ments are future ready. It is the first warehouse in the region with battery storage, ensuring that our brands are well-prepared for a sustainable future shaped by electric batteries,” says Ste- phen Samples, Group After Sales Busi- ness & Homologation Director at Audi Volkswagen Middle East. The new AVME Parts Distribution Center is an eco-friendly facility, using completely solar-generated power and includes the following facilities: > 6,800 m² dedicated area located in- side the Dubai World Central Logistics Area > Closed chambers and operational area of 23,478 m² and 5,000 m² interlocked open yard storage > 24 loading doors for large and small trucks > 15-meter-high ceiling, Max storage height 13 meters > The multi-use facility, chambers for industry verticals > One roof solution for General, Dan- gerous Goods > Convenient access to DWC Airport and Jebel Ali Port > Certificates – ISO 9001:2015, ISO 14001:2015 AUDI VOLKSWAGEN MIDDLE EAST ANNOUNCES COLLABORATION WITH DHL IN THE MIDDLE EAST
12 | LOGISTICS NEWS ME | MARCH 2023 WWW.CBNME.COM REGIONAL NEWS LNME S tarlinks, a leading logistics and supply chain solutions provider in Saudi Arabia, announced the launch of the most technologically advanced fulfilment centre in Saudi Arabia at the beginning of February. Located in Agility Logistics Park, add- ing to Starlinks’ 18 fulfilment centres across the KSA, the facility comprises a storage area of 400,000 square feet. It has 254 autonomous robots for picking and sorting, providing storage capacity for over 12 million units. Starlinks aims to process an average of 3.6 million units of orders per month. The solution will give market-leading flexibility, ac- curacy, and agility by combining world- class technology and industry-leading know-how. The facility will be fully op- erational by Q2 2023. With a total investment exceeding SAR 100 million, Starlinks championed an opportunity to address the ever-growing market demand and to stay true to its brand promise of providing the fastest e-commerce fulfilment cycle through an omnichannel fulfilment facility. The project is aligned with the Kingdom’s Vision 2030, which aims to maximize the potential of the country’s non-oil sectors and bolster its role as a transit hub at the heart of the Middle East. Starlinks has partnered with Geek+ for automation technology, joining their top-tier clientele, which includes Nike, Decathlon, and Walmart. The Fulfilment Centre is run on a hybrid model that employs robotics, manual picking sys- tems, and sortation functions. Adopting a working formula that involves both machines and humans, the company will bring promising employment op- portunities to over 500 talented Saudi Nationals. Salah Taha, Director of Operations at Starlinks, said, “We are excited to bring cutting-edge technology and automa- tion solutions for fulfilment to the King- dom, providing customers with fast and efficient fulfilment services in the KSA, thus reshaping fulfilment services in the KSA by providing our partners with guaranteed quality and instant scale to capacity. Our new solution comprises a pallet storage and handling storage system, a manual pick tower, and a robotics solution allowing us to cater to a wide range of customer require- ments and operations complemented by micro fulfilment centres distributed strategically across the Kingdom. We are committed to driving further in- novation in the region’s logistics and supply chain industry and reducing lead time to e-commerce shoppers.” Salah added, “Advanced automa- tion and big data analytics enable us to track better and manage inventory, predict demand, and optimize routes for transportation, thus helping us to increase efficiency, reduce operating cost and provide seamless services to our customers.” Gary Blythe, Managing Director of Starlinks, added, “Starlinks’ brand promise to innovate and deliver market-leading customer experience is demonstrated in this milestone invest- ment. We proudly represent the King- dom’s commitment to Vision 2030 with our most exciting innovation of 2023.” The company provides direct and smooth integration with Shopify, Ma- gento, WooCommerce, OpenCart, Am- azon, eBay, and a further 60 platforms through direct APIs. Starlinks is the first in the region to offer a hybrid picking solution that allows humans and machines to co- deliver a world-class efficiency manual picking operation, thereby leading to an unrivalled solution for e-commerce fulfilment. STARLINKS TO LAUNCH SAR 100 MILLION HYBRID LOGISTICS FACILITY IN RIYADH
LOGISTICS NEWS ME | MARCH 2023 | 13 REGIONAL NEWS A seed investment round of $2.5 million has been announced by the Saudi digital ordering platform FeedUs, with participation from angel investors. FeedUs is a complete solution for man- aging end-to-end processes for handling online orders from various channels into a single system. It serves as a hub for connecting the four main pillars of food delivery: food delivery providers (aggre- gators), POS systems, white-label online ordering engines, and last-mile delivery companies. Launched in May 2022, FeedUs digitizes the ordering process in the restaurant in- dustry. It oversees all online orders placed with a restaurant, develops, and main- tains menu items, and syncs the names, pricing, and images of each item on the menu with the associated food delivery companies. Moreover, it offers sophisticated analyt- ics and statistics to help restaurants make decisions, use resources efficiently, boost productivity, and boost income. Operating in the GCC region, FeedUs has over 5000 registered restaurants: over 4 million online orders and $75 million in gross merchandise volume (GMV). The Founder, Abdullah Abdulwasa, and the Owner of a local restaurant chain in Saudi Arabia voiced his strong belief in the growth of this critical sector, predict- ing the company to achieve 300% growth in Monthly Recurring Revenue (MRR) by the end of 2023. According to Statista, the growth rate of food delivery revenue in Saudi Arabia was the highest across the Middle East, with 173% in 2020. The UAE followed behind with a 61% growth compared to the previous year. The pandemic led to a significant shift In the GCC region from eating out to order- ing in. In 2020, when lockdown regula- tions were made mandatory in the area, the frequency and value of food orders and the use of food delivery apps saw significant increases. SAUDI FOOD-TECH STARTUP FEEDUS TO RAISE $2.5M IN A SEED FUNDING ROUND
14 | LOGISTICS NEWS ME | MARCH 2023 WWW.CBNME.COM INVESTMENTS LNME C ompanies from the UAE, Egypt, Jordan, and Bahrain signed industrial agreements with an investment value exceeding $ 2 billion at the third Higher Committee meeting of the Industrial Partnership for Sustainable Economic Development. The meeting kicked off in Amman on Sunday, February 26, 2023, in the presence of His Excellency Dr Sultan bin Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and the UAE’s special envoy for climate change, His Excellency Ahmed Samir Saleh, Egyptian Minister of Industry and Trade of Egypt, His Excellency Yousef Al Shamali, Jordanian Minister of Industry, Trade and Supply, and His Excellency Abdulla Adel Fakhro, Bahraini Minister of Industry and Commerce. The meeting included the signing of 12 agreements across nine industrial projects. The projects are expected to create approximately 13,000 job op- portunities and boost the national GDP in the partnering countries by more than $1.6 billion. Jordan’s Prime Minister, His Excellency Dr Bisher Al-Khasawneh, attended the signing ceremony of the four countries’ partnership agreements and the indus- trial ministers. He met with the ministers of the partner countries and stressed the importance of this partnership in strengthening bilateral relations and economic development, along with the importance of the industrial sector’s role within participating countries. His Excellency Dr Al Jaber said, “We are grateful to His Majesty King Abdul- lah II for his continuous support for UAE-Jordanian relations, and for his support of the Integrated Industrial Part- nership for Sustainable Economic Devel- opment. We thank the government of Jordan and its people for their hospital- ity in hosting the third meeting of the Higher Committee for the Integrated Industrial Partnership for Sustainable Economic Development. We are keen on collaborating and complementing regional efforts to achieve integrated sustainable economic development. The UAE is committed to enhancing collabo- ration with member states to ensure we all benefit from each other’s competitive advantages and capabilities.” It is referred that this partnership is beginning to yield tangible results. It represents an exceptional model for industrial partnerships among private- sector companies. It is a testament to their collective ability to plan, integrate, and progress towards achieving our ob- jectives, all while they are still beginning this fruitful partnership. “We are confident that we will witness the development of many new projects. We call on companies in our respective countries to enter these partnerships and propose projects that benefit from the capabilities of our countries and our competitive advantages, resources, and expertise. As governments, we are re- sponsible for supporting these projects, enhancing partnerships and providing the economic environment enabling their success.” Correspondingly, His Excellency Al Shamali, Jordan’s Minister of Indus- try, Trade and Supply, added, “Since launching this partnership, we have witnessed a multi-faceted boom that heralds the start of a profound and sus- tainable transformation in the relations between our industrial sectors.” The first aspect of this shift was reflect- ed in the economic discourse adopted by officials and media, who highlighted the benefits our countries will reap through pursuing industrial integration. This is an integrated Arab effort direct- ed by the highest political levels of the four countries. Additionally, His Excellency Eng. Ahmed Samir Saleh, Egypt’s Minister of Industry and Trade, underlined Egypt’s commitment to enhancing multilat- eral efforts with the UAE, Jordan and UAE, EGYPT, JORDAN AND BAHRAIN SIGNS $2 BILLION WORTH INDUSTRIAL AGREEMENTS DURING THE THIRD MEETING OF THE HIGHER COMMITTEE FOR THE INTEGRATED INDUSTRIAL PARTNERSHIP FOR SUSTAINABLE ECONOMIC DEVELOPMENTS, 12 AGREEMENTS COVERING NINE INDUSTRIAL PROJECTS WERE SIGNED – AIMING TO INCREASE MEMBER NATIONS’ GDP BY $1.6 BILLION AND PROVIDE 13,000 NEW EMPLOYMENT OPPORTUNITIES
LOGISTICS NEWS ME | MARCH 2023 | 15 UAE, EGYPT, JORDAN AND BAHRAIN SIGNS $2 BILLION WORTH INDUSTRIAL AGREEMENTS Bahrain to boost industrial integration among Arab nations and support eco- nomic relations. “The economic crisis the world is cur- rently experiencing demonstrates the necessity of achieving industrial integra- tion among Arab states,” says His Excel- lency Eng. Ahmed Samir Saleh, Egypt’s Minister of Industry and Trade. “We must strengthen regional partner- ships and include the private sector as a significant partner in implementing sustainable development plans and helping the Arab region to prosper. Recent geopolitical and economic chal- lenges demand stronger bonds among Arab nations and more robust economic partnerships. These partnerships can help enhance resilience against future crises and achieve self-sufficiency and sustainable economic development,” concluded His Excellency Eng. Ahmed Samir Saleh. His Excellency Abdulla bin Adel Fakhro, Bahrain’s Minister of Industry and Commerce, said, “The partnership offers a real opportunity to increase the efficiency of supply chains through the integration of industries in the region, which is a pillar of Bahrain’s industrial strategy. Bahrain has proposed more than ten industrial projects with an estimated investment value of over $2 billion. These include mature projects and projects in their early stages. The locations of these factories vary, as we believe that all partner countries should benefit from them.” His Excellency also invited the partner- ship to hold its next meeting in 2023 in Bahrain. 12 Major Agreements The Egyptian company Soda Chemical Industries announced an investment of $500 million to produce sodium carbon- ate, ‘soda ash’, which is the primary raw material in many industries, such as the glass and detergent sector. The facility will have a production capac- ity of 500,000 tons annually. An MoU was signed for a strategic partnership with the Emirates Flat Glass Company, owned by Dubai Investments, to pur- chase the final product. UAE-based automotive manufacturer M Glory Holding announced the launch of a large manufacturing project with an investment of $550 million. The project will establish three electric vehicle fac- tories with specialized production and assembly lines in the UAE, Jordan, and Egypt. Production capacity will reach 40,000 compact crossover SUVs during the first three years of operation. M Glory Holding signed memoranda of under- standing with the Jordan Design and Development Bureau and Egypt’s Arab Organization for Industrialization as manufacturing partners and with Bah- rain’s GARMCO to supply aluminium sheets. The agreement exemplifies how the partnership aligns with sustainability objectives and the UAE’s presidency of COP28. Emirati investor-owned CFC Group an- nounced it would invest $400 million to establish an industrial complex for ferti- lizers and chemicals in Egypt. It signed MoUs with Jordan-based Arab Potash and Egypt’s Misr Phosphate Company to supply raw materials. The industrial complex will have an annual production capacity of half a ton of fodder, potash fertilizers, and 1.1 tons of chemicals. Emirates Global Aluminium announced a $200 million investment to establish a silicon metal plant in the UAE with a yearly production capacity of 55,000 tons. The company signed an MoU with Jordan’s Manaseer Group to supply the required crystalline silica. Manaseer Group announced the ex- pansion of a $70 million magnesium oxide plant in Jordan. Once completed, the plant will have a total production capacity of 270,000 tons annually, which will be exported to the UAE. It will sell its product to Emirates Global Alu- minium. Production is set to commence in 2024. The UAE’s Global pharma partnered with Egypt’s Nerhadou to develop advanced technology for manufactur- ing medicines and supplements. An agreement was also signed to transfer technology to two Jordanian compa- nies – Savvy Pharma and Triumph. Both projects will commence in 2023 with a total investment value of $60 million. Production capacity will reach 5 million packages annually per product. Jordanian company Itqan announced a technology transfer partnership and contract manufacturing agreement with Globalpharma and ADCAN Pharma to manufacture syringes, aerosols, and inhalers. It also entered an MoU with Egypt’s Marcyrl to transfer technology in manufacturing biosimilars in Jordan at a total investment value of $10 million, in- tending to launch products by Q4 2024. >>>
16 | LOGISTICS NEWS ME | MARCH 2023 WWW.CBNME.COM Bahrain-based Alpha Biotic signed two MoUs for knowledge and technology transfer and contracted manufacturing with Jordan’s Dar Al Dawa and Egypt’s EIPICO to produce generic, oncology, medical solutions, and other pharma- ceutical products. At an investment value of $174 million over two phases, the project’s production capacity is expected to reach 350 million pills an- nually. Gulf Biotech, another Bahraini com- pany, announced plans to establish a plant to manufacture raw materials for vaccines and other products at an investment value of $103 million and a production capacity of 105 doses per year. It signed a technology transfer agreement with Egypt’s BioGeneric Pharma earlier this month. 35 New Projects Proposed During the meetings, His Excellency Omar Al Suwaidi, Undersecretary of the UAE Ministry of Industry and Advanced Technology Head of the Partnership’s Executive Committee, presented an up- date on the partnership’s progress, the findings of the partnership’s workshops, investment opportunities, and future plans for developing the partnership. His Excellency noted that more than 100 companies have participated in the metals, textiles and petrochemical work- shops held over the past 6 months. The partnership has also received 35 pro- posals for new projects, he emphasized. “The proposals were discussed dur- ing the Executive Committee in Amman workshops. The workshops also helped to prepare an implementation plan for enablers in the agriculture, food, fertiliz- ers, and pharmaceutical sectors. During the workshops, the UAE and Jordan made a pharmaceutical mutual recogni- tion agreement,” said His Excellency Omar Al Suwaidi, Undersecretary of the UAE Ministry of Industry and Advanced Technology Head of the Partnership’s Executive Committee. He added, “The committee is studying the feasibility and economic impact of projects in various sectors, along with partnership opportunities with the pri- vate sector. The committee will continue to search for new projects and evaluate and enable projects, including a ferti- lizer factory in Jordan at an estimated cost of $800 million.” During the meeting in Amman, the Executive Committee of the Integrated Industrial Partnership for Sustainable Economic Development submitted recommendations and a report to the Higher Committee for approval. It also discussed some potential projects and listened to representatives of industrial companies who presented proposals for projects. The UAE delegation participating in the committee meetings included His Excellency Sheikh Khalifa bin Moham- med bin Khalid Al Nahyan, Ambas- sador of the United Arab Emirates to the Hashemite Kingdom of Jordan, a number of employees of the Ministry of Industry and Advanced Technology, the Ministry of Health, and a number of officials and representatives of relevant Emirati companies. These included ADNOC, Emirates Global Aluminium, Dubai Investments, Abu Dhabi Holding Company, Mubadala, Janan Company, M-Glory Holding Group, Global Pharma, Adkan Pharma, and Al Dahra Company. The Jordanian delegation included His Excellency Dana Al-Zoubi, Secre- tary General of the Ministry of Industry, Trade and Supply, and several of the Ministry’s employees. The Egyptian delegation included His Excellency, the Egyptian Ambassador to the Hashemite Kingdom of Jordan, Eng. Duaa Salima, Executive Director of the Industry Mod- ernization Center, and Yasser Jaber, Undersecretary for Information and the Ministry’s official spokesperson. Bah- rain’s delegation included His Excellency the Ambassador of the Kingdom of Bahrain to the Hashemite Kingdom of Jordan, Iman Al-Dosari, Undersecretary of the Ministry of Industry and Trade, and Dr Khaled Al-Alawi, Assistant Un- dersecretary for Industry Development Mahmoud Al-Mujbel Director of Com- munication and Awareness Department. The Upcoming Meeting In Bahrain Bahrain’s capital will host the fourth meeting of the Higher Committee for the Integrated Industrial Partnership for Sustainable Economic Development, where more joint projects will be dis- cussed. The first meeting of the Supreme Committee for the Integrated Industrial Partnership for Sustainable Economic Development was held in the UAE’s capital, Abu Dhabi. The panel discussed accelerating the pace of industrial in- tegration opportunities and enhancing cooperation by involving more sectors, including agriculture, food and fertiliz- ers, pharmaceuticals, textiles, minerals, and petrochemicals. LNME INVESTMENTS
OPED T he appointment of Sultan Al Jaber (CEO of ADNOC, one the world’s largest oil producers; and Masdar, UAE’s renewable energy company) as president- designate of the upcoming UN Climate Change Conference, COP28, was no big surprise, in light of how economic power and institutional governance work in the Gulf region. The appointment has been qualified as a ‘terrific choice’ by John Kerry, US Climate Envoy, while NGO Climate Action Network (CAN) International Chief, Tasneem Essop, said, “it represents a full-scale capture of the United Nations climate talks by a petrostate national oil company.” CAN has called on Al Jaber to resign from his chief oil post before leading the multilateral climate negotiations to save Humanity from climate breakdown. It is important to note that while science tells us that limiting the increase of the global average temperature to 1.5 degrees Celsius [VM3] [MCC4] by 2100 from pre-industrial levels implies phasing out fossil fuels (coal, oil, and gas) –UAE’s national oil company has announced it will almost double its daily oil output by 2027, reaching 5 million barrels per day, a plan that seems incompatible with the Paris Agreement the UAE is a signatory of. The leadership choice for the upcoming COP by the UAE comes across as an obvious but not isolated example of a double talk that often dominates the discussions around the solutions to the climate crisis. We only have a little time to get our heads around the cacophony of contradictory speeches and actions. >>> NAVIGATING THECLIMATE Key insights which are reflected on WEF23 and COP28 UAE Presidency by 10 Billion Solutions
18 | LOGISTICS NEWS ME | MARCH 2023 WWW.CBNME.COM OPED LNME Davos’ Slippery Slopes For Fossil Fuels Bosses The daily news provides numerous other examples of these striking paradoxes: think of the Davos annual meeting organized by the World Economic Forum (WEF), a powerful Swiss organization that convenes the rich and powerful of this world. Under the theme ‘Cooperation in a Fragmented World’, 2.700 VIPs from 130 countries, including over 50 heads of State or Government and top executives from multinational companies, met in the exclusive ski resort to reflect and have a say on the course of a world that, we all know, is heading to catastrophe if we continue business as usual. CEOs of the big fossil firms, including BP, Chevron Corporation, and Saudi Aramco, did not miss the Davos rendezvous. Their presence was called out by climate activists who criticized the influence fossil fuels companies have in these gatherings, echoing the outrage about record numbers of oil and gas representatives present at the recent COP27. At one of the events, Greta Thunberg accused energy firms of throwing people ‘under the bus’ in an appearance next to the International Energy Agency (IEA) leader Fatih Birol, which is remarkable, given the conservative positions held in the past by the IEA when it came to the solutions to the climate crisis. This event exemplifies how broader civil society participation at WEF events is always good news. With global warming worsening, climate-related disasters are hitting harder everywhere due to burning fossil fuels. In the face of unabated greenhouse gas emissions, United Nations Secretary-General António Guterres sent this blunt message to the fossil industry: “Today, fossil fuel producers and their enablers are racing to expand production, knowing full well that this business model is inconsistent with human survival. This insanity belongs in science- fiction, yet we know the ecosystem meltdown is cold, hard scientific fact.” Apparent paradox or insanity, the double talk of some powerful companies and nations should not distract from what we genuinely know are the right things to do to tackle the climate emergency. Consider this other paradox at the much lower level of the individual consumer and the companies we depend upon. Most of the world’s citizens acknowledge the existence of the climate and biodiversity crises, are concerned, and want to do something about it. And yet citizens, especially in the richer countries, keep contributing to climate and biodiversity degradation because of the lack of an enabling environment and policies that would allow us all to move from concern to action. On the contrary, we are bombarded by injunctions to consume far beyond what we need to thrive. Think “TODAY, FOSSIL FUEL PRODUCERS AND THEIR ENABLERS ARE RACING TO EXPAND PRODUCTION, KNOWING FULL WELL THAT THIS BUSINESS MODEL IS INCONSISTENT WITH HUMAN SURVIVAL. THIS INSANITY BELONGS IN SCIENCE-FICTION, YET WE KNOW THE ECOSYSTEM MELTDOWN IS COLD, HARD SCIENTIFIC FACT.” IEA Fatih Birol and climate activists
LOGISTICS NEWS ME | MARCH 2023 | 19 about Black Friday and the most recent Blue Monday, which are perfectly marketed inventions to promote over- consumption. Please think of the compelling algorithms baked into our digital life, finely targeting us with ads depicting lifestyles that are all but sustainable. We become climate-aware, concerned citizens, yet we are subjected to powerful contradictory injunctions. One last paradox for today: the NGO OXFAM International released a report just before the WEF showing that since the pandemic, the richest are becoming even richer while the number of people in poverty is increasing for the first time in 25 years. The goal of the report is to demonstrate why it is so essential to tax the richest and stem the staggering growth of inequalities. In the margins of the WEF, a group of progressive millionaires and billionaires are surprisingly demanding to be taxed in the name of social justice. Taxation is eminently a power and prerogative of the states, and yet most, if not all, of those states are very reluctant to tax the richest for fear of wealth fleeing to other jurisdictions. Is there a more extraordinary paradox than having power for good and not using it? Sticking To Basics Principles We can’t pretend to make sense of all those paradoxes, but we all can stick to basic and agreed-by-most principles that will help us navigate our individual personal choices and actions: 1. Scientific consensus about the causes of the climate emergency exists, and it is no longer questioned. 2. Public awareness and concern are now high and will increasingly influence public policy and corporate behaviour. 3. Governments at all levels can and must play a key policy role in setting the transition’s direction and pace. 4. Scalable, robust solutions exist, but we need to put the money where the mouth is to make them work. 5. We must decarbonize and adapt as fast as possible. Climate change is real and kills people. Paradoxes and difficulties will not disappear just by sticking to some principles. Selfishness at the individual, corporate, and political levels is given. It would be naive to expect greed and self- interest will take a backseat. But only through persisting in the international dialogue will we establish multilateral trust and enable economic breakthroughs and social change; only through specific public and monetary policy will the motivation of profit increasingly be channelled into decarbonized activities; only through public vigilance and honest, fact-based communication can we shape our collective aspirations. Let’s lift all the boats with the tide and avoid letting many sink. Antonio Guterres Davos COP28 President and former presidents and UNFCCC Photo by UAE Climate Envoy Twitter NAVIGATING THE CLIMATE INSANITY
20 | LOGISTICS NEWS ME | MARCH 2023 WWW.CBNME.COM W hile the global economic outlook for 2023 is gloomy, the picture for emerging markets in Africa and parts of the Middle East looks somewhat brighter. The International Monetary Fund, citing high-interest rates and runaway inflation, forecasts that global growth in 2023 will slow to 2.7% from 3.2% in 2022 and 6.0% in 2021. However, the outlook for emerging markets in Africa is more buoyant, with growth expected to reach 3.7%, up slightly from the 3.6% recorded in 2022. On the other hand, the Middle East region won’t escape a slowdown due to double-digit inflation and higher commodity prices. The IMF predicts a drop from 5% growth in 2022 to 3.6% in 2023. Oil exporters, however, will be buffered for a while by still- high global energy prices and may yet escape a slowdown. My analysis of this mixed bag of projections follows an attempt to extrapolate what the figures might mean for emerging market logistics in the two regions. Emerging Market Logistics in Africa: Bucking the Downward Trend Overall, the outlook for Africa is stable, even marginally positive. Nevertheless, economists caution that the estimate is skewed by the fact that the economies of the continent’s energy producers—Nigeria, Angola, Gabon, Libya, Algeria, Egypt, Congo-Brazzaville, Ghana, Equatorial Guinea, and Chad—are being temporarily boosted by exports to Europe, which is seeking alternatives to Russia’s oil and gas reserves. Some other African countries are teetering towards the edge, says the IMF, citing the following factors: > Spiralling inflation > High-interest rates > Geopolitical tensions > A Slump in demand for Africa’s exports > Food insecurity > Malnutrition > Supply chain disruptions > The lingering effects of the Covid-19 pandemic LOGISTICS OUTLOOK FOR EMERGING MARKETS 2023 AFRICA & MIDDLE EAST ANALYSIS LNME This report is crafted by the Ingo Kloepper, Global Managing Director of WeFreight
LOGISTICS NEWS ME | MARCH 2023 | 21 > Disruptive national elections Although not in danger of falling off a cliff, the economies of some of the continent’s powerhouses are faltering. Consider the following growth projections: Angola: 2.9%; Nigeria: 3.2%; South Africa: 2.1% (suffering daily power outages and in danger of slipping into recession). On the positive side, we have Egypt, with growth projected at 6.6% and Kenya at 5.3%— making for a mixed bag. Despite the uncertainties, however, I believe there are some reasons to be cautiously optimistic about logistics in Africa over the coming 12 months. The Outlook for 2023 Trade in Africa has long been beset by suboptimal infrastructure and inefficient supply chains. Several regional free trade zones and customs unions have alleviated some tiresome procedures and crippling tariffs that stifle cross-border trade. However, these are provincial entities that benefit only the countries involved. The establishment of the African Continental Free Trade Agreement (AfCFTA) in 2019 promised to introduce free trade to the entire continent. It brings together 55 countries and is intended to create a single market with a population of about 1.3 billion people and a combined GDP of approximately $3.4 trillion (USD). Since its launch, progress has been slow. It was April 2022 before the first trickle of goods began crossing borders under the agreement. However, momentum is building, and eight countries are now participating in a pilot project to prove that the system works. Trade remains hampered by infrastructure issues, however. For example, a consignment of car and truck batteries from Kenya to Ghana went via Singapore due to the need for sailings between the two countries. Other goods move along poorly built roads, increasing logistics costs. Still, there are signs that the tide is turning and that baby steps are giving way to more confident strides forward, stimulating optimism that the logistics boost delivered by the AfCFTA could eventually help unlock the continent’s full potential. Logistics in the Middle East: High Inflation Slows Growth In its annual report, the IMF warns that economies in the Middle East will be buffeted in 2023 by the global slowdown, double-digit inflation, high food and energy prices, and tightening financial conditions. As long as energy prices remain high, oil exporters will avoid the worst of the slowdown. Saudi’s economy, for example, is expected to grow at a buoyant 7.6% in 2023. Iraq comes in above the regional average at 4%. While economies may be stuttering, the logistics sector is expected to burgeon in the year ahead, thanks to Middle Eastern consumers’ enthusiastic uptake of online shopping during the COVID pandemic. 5 Reasons to Anticipate a Brighter Outlook for 2023 A wealth of factors will give hope to any emerging market forwarder about the future of the logistics sector in the Middle East. Here are a few of them: 1. Middle East e-commerce markets are expected to grow at a CAGR of more than 11.5% in 2022-2027, according to Mordor Intelligence. 2. The Middle East has one of the world’s youngest populations, with many people increasingly using smartphones for online shopping. 3. Saudi Arabia has launched a $2.7 billion (USD) drive, which includes investment incentives and special economic zones, to lure global logistics firms to the kingdom and propel it into the 15 largest global economies by 2030. 4. Middle Eastern brands and foreign investors in the region are increasingly turning to automation tools and digital technology, such as big data analytics and machine learning, to boost the efficiency and resilience of their supply chains. 5. The region is driven by high internet penetration and rising urbanisation. The Role of Technology in Emerging Markets Logistics Technology is rapidly transforming emerging markets’ logistics. I am referring to digital platforms such as Artificial Intelligence, Machine Learning, the Internet of Things, big data, blockchain, and robotics. Clever use of these platforms can deliver some or all the following commercial benefits: > Retailers and suppliers can easily communicate about orders and quantities. > Businesses can track their inventory and products in real-time. > Brands can negotiate delivery dates. > Retailers can forecast potential delays to shipments and plan ahead. At the same time, by automating the warehouse, particularly by deploying robots, supply chain managers can LOGISTICS OUTLOOK FOR EMERGING MARKETS 2023 | AFRICA & MIDDLE EAST >>>
22 | LOGISTICS NEWS ME | MARCH 2023 WWW.CBNME.COM ANALYSIS LNME streamline all operations, from goods receiving and put-away through picking and packing to loading and dispatch. Technology is becoming vital to help businesses reduce costs, achieve logistics and transportation efficiency, and increase customer satisfaction. Challenges Facing Emerging Markets Logistics The logistics outlook for Africa and the Middle East in 2023 is mainly uncertain, and many companies, especially in Africa, face formidable supply chain challenges. You’ll find a few of them listed here, along with my observations relating to companies’ steps to overcome them. > Taking on the Competition With the grip of the pandemic easing, shoppers are flocking back to brick-and- mortar stores to savour the delights of picking up, trying on, and evaluating items first-hand rather than via online images. For e-commerce retailers, this means facing competition from other e-tailers and traditional outlets. Some e-commerce concerns are offering online discounts, special deals, exclusive goods, and big sales to stand out in the crowded marketplace. > Catering to Customer Demands To survive, retailers must provide what customers demand, which goes for service as much as a product. Vendors must pull out all stops if customers want on- demand delivery to cater to the growing penchant for immediate gratification. E-commerce businesses in the Middle East are responding to this challenge by outsourcing deliveries to Third Party Logistics (3PL) companies, who are, in turn, beefing up their fleets, employing extra staff, and creating satellite warehouses to narrow the distance between retailers and customers. In Africa, however, same-day delivery can only be expected in large cities, while next-day services are more abundant. At the other end of the spectrum, consumers in smaller towns, villages, and rural areas, consider themselves fortunate to receive delivery within one week. > Countering Cyber Attacks Three countries in the regions covered by this article—Algeria, Tanzania, and Iran—are listed as among the five least cyber-secure countries in the world (the other two are Pakistan and Tajikistan). On average, a cyber-attack occurs somewhere in the world every 44 seconds. According to Statista, data breaches in the third quarter of 2022 exposed some 15 million data records, a 37% increase from the previous quarter. If cyber security is not at the top of every company’s agenda for 2023, it ought to be. IT specialists are trying to stay ahead of the predators, phishers, and malware planters by using artificial intelligence and machine learning platforms. Internet security has never been a more significant concern for businesses and individuals. The challenge is enormous. > Meeting Demands End-to-End Visibility in the Supply Chain While customers increasingly expect end-to-end visibility across their supply chains, the heavy investment companies need to achieve this goal means it is likely to become the norm sometime soon. The issue, of course, is that in many cases, multiple providers are involved in any one shipment, making it difficult for customers to get an accurate and real- time location of their cargo. Blockchain technology, artificial intelligence, and machine learning are being applied to meet this challenge, but these technologies are costly and are beyond the reach of most SMEs, particularly in Africa. > Supply Chain Compliance This is one of the most complex challenges facing emerging market forwarders as it is somewhat amorphous, and unless companies are meticulous in ensuring compliance, they can face hefty fines or be taken to court. Compliance covers any or all of the following: > Adherence to local labour laws > Implementing health and safety laws > Ensuring the correct handling of hazardous material > Protecting a business and its customers from corruption and fraud > Meeting export and import controls > Implementing an environmental, social, and governance (ESG) framework. Although not at the top of many companies’ priority lists, access to a dedicated compliance management system is the most effective way to stay on the right side of applicable laws and regulations. Ocean and Air Freight Logistics in 2023 Because of the slump in global demand for commodities, the coming year will be an ‘extremely challenging’ one for the ocean and air freight markets, according to the rates benchmarking platform Xeneta. 22 | LOGISTICS NEWS ME | MARCH 2023
LOGISTICS NEWS ME | MARCH 2023 | 23 LOGISTICS OUTLOOK FOR EMERGING MARKETS 2023 | AFRICA & MIDDLE EAST The most optimistic estimates put 2023 transported volumes below those of 2022. Some predictions suggest that volumes could dip up to 2.5% or even further. Let’s briefly look at the ocean and air freight categories related to the two regions under focus in this article. Ocean Freight Emerging Markets Asia-Mideast-Africa trade is under severe pressure with tumbling spot rates and a softer market. The China Containerized Freight Index (CCFI), which usually peaks in the weeks leading up to the Chinese New Year (starting on January 22), has dropped by 34% on European trade lanes and 57% on Mediterranean trade lanes. Xeneta reports that across the world’s three main trade lanes, spot rates dipped by an average of 79.3% from 31 December 2021 to 31 December 2022, with the most significant drop (84.1%) being registered in the Far East to North Europe trade lane. And the situation could get worse, according to Xeneta, as liners flush with cash gains made during the height of the pandemic invest in new ships. It expects the global fleet to grow by 5.9% in 2023, leading to overcapacity and the idling of vessels. Air Freight Emerging Markets Xeneta predicts a turbulent 12 months for the air freight industry as shippers shift cargo back to less-costly ocean freight and as belly capacity, which was at a premium during the height of the pandemic, becomes plentiful again due to an uptick in international travel. An indication of what could lie in store for the sector is a 40% drop year-on-year in air index rates from China to North America, and Europe recorded at the end of November. The expected surge in demand over the Christmas period failed to materialise as consumers, hard hit by soaring inflation, reined in spending. An additional pressure source on the sector is a need for more staff at airports and airlines, which often leads to shipping delays. Despite the Gloom, Emerging Markets Offer Potential What is clear amidst all the uncertainty is that emerging markets in Africa and the Middle East are growing more rapidly than developed markets, offering opportunities to profit for businesses large and small that are willing to get involved. Be warned, however, that it is vital to study the logistics requirements of each country before making potentially risky investments. Reduce the Risks—Partner with a Trusted Logistics Provider Investing in emerging markets can be extremely rewarding for profitability and expanding a company’s international reach. But it also carries risks for the unwary and could quickly end in financial disaster. Partnering with an emerging markets forwarder and logistics provider like WeFreight, with its extensive experience and knowledge of the markets in Africa and the Middle East, could go a long way toward mitigating such risks, making the difference between success and failure. As an agile leader in emerging market logistics, WeFreight has a team of Africa and Middle East experts always on hand to provide tailor-made solutions to any logistics challenge. Please visit our website to learn how we can help your company in Africa or the Middle East meet logistics challenges in 2023. We offer an array of services and serve a wide range of industries. Ingo Kloepper, Global Managing Director of WeFreight
24 | LOGISTICS NEWS ME | MARCH 2023 WWW.CBNME.COM KSA SPECIAL FEATURE LNME LNME has collectively collected some insightful stories celebrating the emerging yet booming industries across the Kingdom. From SADAFCO’s operations and AJEX’s freight forwarding plans to FinaMaze’s stance at LEAP 2023. Jump right into the flourishing land of the largest country in the Arabian Peninsula CELEBRATING THE SUCCESS GROWTH OF THEKINGDOM
LOGISTICS NEWS ME | MARCH 2023 | 25 KSA SPECIAL FEATURE
26 | LOGISTICS NEWS ME | MARCH 2023 WWW.CBNME.COM FORECAST LNME M andiant’s projections for the coming year were initially referred to as ‘predictions.’ Yet, the company’s predictions for the cyber security landscape in the future year are always based on current global trends. This study contains predicting insights from several of Mandiant’s best minds, including Sandra Joyce, Head of Global Intelligence, Charles Carmakal, Consulting CTO, and Phil Venables, CISO for Google Cloud. Threats evolve, attackers modify their tactics, approaches, and processes regularly, and defenders must adapt and remain persistent to keep up. This Forecast aims to help the cyber security industry frame its fight against cyber adversaries in 2023. Global Forecasts > Protecting supply chains The supply chain is as attractive a target as ever for cyber-attacks. Mandiant’s latest M-trends report reveals that supply chain compromise rose to the second most common initial infection vector in 2021 at 17% of intrusions investigated by Mandiant. > More Attacks by Non-Organized Attackers and Non-Nation State Attackers In 2023 Mandiant forecasts more intrusions conducted by non-organized and non-nation state attackers. More of the threat actors operating out of North America and Europe will likely be younger and performing intrusion operations not because they’re interested in making money specifically or because governments have tasked them with doing it but because they want to be able to brag to their friends or boast online that they’ve hacked into and brought embarrassment to prominent organizations. While they will be happy to achieve financial gain, that may not necessarily be their lead motivation. > More Extortion, Less Ransomware Historically, cybercriminals have used ransomware to monetize access into a victim’s network. Due to several high- profile and visible breaches last year, organizations see mitigating brand damage as a compelling reason to pay a ransom than regaining access to encrypted systems. Over the next year, the trend shows that criminals rely on extortion, but actual ransomware deployments may decline. Ransomware- as-a-service (RaaS) providers will modernize their software to focus on data exfiltration and “leak sites” for public shaming. > Information Operations (IO) Will Rely More on Third Party Organizations for Plausible Deniability IO has historically been politically motivated and state-sponsored, as observed in the 2016 U.S. elections. Since then, there has been more outsourcing of IO work by state actors. This trend could grow in 2023 as “hack-for-hire” engagements become more common. In 2019, OSINT researchers observed a pro-Indonesian IO social media campaign conducted by Jakarta-based media company InsightID. This campaign was aimed at distorting the truth about events in the restive Indonesian province of Papua. Coincidentally supporting this observation, Meta testified in mid-2021 about an increase in hiring marketing CYBER SECURITY FORECAST 2023 MANDIANT REPORTS MANDIANT IS AIDING MANY ENTERPRISES IN SAUDI ARABIA WITH CYBER THREAT INFORMATION, PROVIDING PRODUCTS, SERVICES, AND OTHER RESOURCES TO HELP THEM PROTECT AGAINST RELEVANT THREATS
LOGISTICS NEWS ME | MARCH 2023 | 27 MANDIANT REPORTS CYBER SECURITY FORECAST 2023 or public relation firms in IO campaigns—to lower the barrier of entry for some threat actors and obfuscate the identities of more sophisticated ones. > Enterprises Will Lean into Password-less Authentication Corporate credential theft continues to be one of the top ways cybercriminals access victims. Furthermore, in 2022, several examples of attackers have found ways to circumvent multifactor authentication technologies. Apple, Google and Microsoft have committed to consumer- based password-less resources based on FIDO Alliance and World Wide Web Consortium standards. The initial rollout of these technologies will focus on consumer-grade password-less resources, but CISOs will demand enterprise identity platforms to expand password-less concepts to the enterprise market. Over the next year, organizations should look for enterprise-focused password-less solutions. > Identity First, Identity Lost Threat actors have shifted from gaining control of an endpoint to accessing a user’s credentials and account. A user’s identity within an organization has become more critical than access to the user’s endpoint. Over the next year, threat actors will find new ways to steal identities from users using a combination of social engineering, commodity information stealers, and information gathering from internal data sources post- compromise. They will combine stolen credentials with new techniques to bypass multifactor authentication (MFA) and abuse Identity and Access Management (IAM) systems. > Attackers Will Read More Security Research to Learn Offensive and Defensive Tactics A trend observed in 2022 is expected to increase: Threat actors will continue to study the blogs and research of analysts in the security community to learn offensive tactics and techniques, defensive strategies and how to exploit vulnerabilities. They may discover clever ways to break into organizations or learn techniques written about in a security post two or three years ago that haven’t been used in the wild. Mandiant has already observed threat actors reading defenders’ security blogs to learn how they could be detected. > Cyber Insurance Will Be Harder to Obtain, and Coverage May Be Restricted Over the years, more enterprises have relied on cyber insurance to cover their cyber risks as management has become more aware of cyber security risks. However, claims have skyrocketed, forcing insurance firms to reevaluate their risk appetite and scale back coverage accordingly. Many firms attempting to renew their cyber insurance— or fresh in the market—may find difficulty obtaining the desired range. > When the Real World Meets the Virtual World SMS, email, and application redirection attacks have already been observed and encountered. Now a new model is coming—an approach that consists of deceiving victims in the real world. For example, in 2022, there was a campaign in which victims received a receipt for the delivery of packages in their physical mailboxes. The permit included a QR code directing them to an identity and credit card number theft site. In 2023, more schemes like this are expected, where the attacker uses everyday physical support to deceive their victims. Fake advertisements, fake USB keys, fake receipts—the possibilities for attackers are endless. Educating employees and the public is the best defence against these threats. Ransomware has been a staple of Mandiant reports for several years. While it is well-established as part of many threat actors’ toolkits, data shows more of a drop in U.S. incidents and a rise in European incidents. While entities in European regions need to stay especially vigilant, organizations worldwide need to be ready for increased attempts at extortion. Extortion actors will only stop at something to achieve their goals, even using physical devices and less common types of social engineering. 2023 is also expected to increase the number of attackers motivated simply by bragging rights. These actors are often younger and unrelated to a nation-state or organized group. However, there could still be nation-state activity. The road to more robust cyber defences has always been complex, especially for security professionals. Organizations have a lot to keep in mind for 2023 regarding cyber security. Sandra Joyce, Head of Global Intelligence - Mandiant Phil Venables - CISO for Google Cloud Charles Carmakal - Consulting CTO - Mandiant
28 | LOGISTICS NEWS ME | MARCH 2023 WWW.CBNME.COM RETAIL LNME S audia Dairy and Foodstuff Company (SADAFCO), a significant food manufacturer, and distributor all across the Middle East, was founded in 1976. Its leading brand ‘SAUDIA’ dominates Long Life Milk, Tomato Paste, and Ice Cream markets in Saudi Arabia. With SADAFCO as a market leader, it is critical to recognise that the success behind its remarkable performance is not just the company’s quality and branding but also its excellent logistics and supply chain operations. Dairy goods are sensitive products which require an agile supply chain facilitator through the entire value-chain, from product manufacture through fresh delivery to retailers and the end-customer. Also, remember other vital factors, like the ongoing adaptation of automation, technology, and collaboration with the best suppliers. Adequate due diligence for supply identification and assessment is critical for efficient supply chain management. SADAFCO constantly evaluates existing and future suppliers for every sub-category sourcing to maintain a balanced risk-to-value strategy across a diverse supplier base. Especially in the case of raw materials and packaging materials. “At SADAFCO, we are constantly vigilant to ensure we never find ourselves 100% dependent on a single supplier to defend the company from any potential monopolist behaviour from any supply,” says Patrick Stillhart, Chief Executive Officer, SADAFCO. Additionally, consolidation of indirect expenses makes solid commercial sense at SADAFCO right now, but primarily in offering centralised subject matter procurement knowledge throughout the company while keeping a diverse supply base. Consolidating indirect expenditures offers several advantages, including negotiating a lower price with a diverse supplier base. “For example, instead of having each department negotiating and raising POs for indirect expenses, a consolidated planning approach can free up time for people to focus on more value-generating activities,” says Patrick. In general, a corporation with well-planned integrated transactions has higher purchasing power. This results in considerable cost savings for the organisation, which might be reinvested in other parts of the business or passed on to customers to compensate for inflationary pricing increases. SADAFCO is currently the sole secondary distributor (depot to retailer) for all our products. SADAFCO, on the other hand, is constantly ready to compare our primary and secondary distribution costs to other possible opportunities in the markets and channels they serve. Features which SADAFCO considers for selecting the right distributor are: > Product mix: types of products carried, including competitive, supplementary and complimentary items. > Financial stability: credit history and timeliness of payments. > Sales and marketing capabilities: the size of outside and inside sales force, ability to generate leads, selling skills, and technical competence. > Sales performance: past sales history for same or similar products. > Growth potential: capability of a distributor to keep pace with any anticipated growth in the local market. > Technology capabilities: possession of and familiarity with the technology required to do business together most efficiently. THEDAIRY KING Vibha Mehta interacts with Patrick Stillhart, Chief Executive Officer, Saudia Dairy & Foodstuff Company (SADAFCO), where they discuss regional logistical activities
LOGISTICS NEWS ME | MARCH 2023 | 29 > Management ability: distributor viewpoint on human resources, planning, training, financial management, and communication. > Overall fit: how well our goals, operating philosophies, and business practices match the distributors. As a significant regional food manufacturer, the firm has also established an FSMS following the globally recognised ISO 22000:2018 standard. FSMS is a network of interconnected elements that work together to guarantee that food does not negatively impact human health. This includes all the programmes, plans, policies, procedures, practises, processes, objectives, controls, roles, responsibilities, paperwork, records, and resources used in the food processing process. SADAFCO has developed a smooth logistical operation for its products across the country by applying these regulations. “We have identified technology-based solutions and automation as one of our main tools to enhance resource and delivery efficiencies across the value chain. ‘Digital factories’ are one of our major digitisation programs, which we have initiated during the year at the Jeddah factory,” adds Patrick. This digital milk factory’s holistic and real-time data will boost efficiency, production, traceability, supplier performance, and environmental compliance. It also enhances production workflow control and the transfer of everything from raw materials to work-in-progress and final items, improving overall human and resource performance efficiency. The next stage in their endeavour to optimise operations and minimise emissions is the introduction of Artificial Intelligence-based technologies for determining vehicle product load. “We created a customised and automated daily van load system. Before distribution, the algorithm in this system examines aspects such as sales history, promotional plans, new launches, inventories, and macro and micro external factors.” This solution assists in removing route redundancies and repeated visits, as well as increasing order compliance. They have tested the resolution, which will be applied shortly. Correspondingly, the continued focus on automation and operation systems has again generated significant efficiency gains in manufacturing and supply chains. At SADAFCO, technology-based solutions and automation are one of the main tools they use to optimise our operations, enhance resource utilisation, streamline delivery efficiencies and much more. “We see the value the data offers us in improving our business and better placing us to make optimal decisions that are good for the environment continually,” states Patrick. SADAFCO is committed to offering high-quality services and values user feedback on its goods. It is also committed to handling complaints promptly, efficiently, effectively, and equitably. Complaints are a regular aspect of doing business in the retail industry, and we take them with decency and expertise. Patrick adds, “We are fortunate that we don’t have a particular area that our consumers frequently complain about. We proactively manage issues as they arise and have established a formal complaint management process to record and solve all consumer complaints.” Regarding plans, SADAFCO has some new projects lined up for 2023. During 2023, they are also working towards expanding their current solar plans to approximately an additional 8 SADAFCO sites. This will result in a healthier working environment for employees and neighbours and reduce the quantity of power required from the national grid. SADAFCO is finalising project charters to target saving an additional 100 million litres of valuable fresh water annually. “We have quite a few projects in the pipeline. We are upgrading the forklifts at all depots and factories to a completely electric fleet, and in some cases like Jeddah Central Warehouse, are powered by solar panels,” concludes Patrick. WHAT CAN BLOCKCHAIN DO FOR THE LOGISTICS INDUSTRY? “WE HAVE IDENTIFIED TECHNOLOGY-BASED SOLUTIONS AND AUTOMATION AS ONE OF OUR MAIN TOOLS TO ENHANCE RESOURCE AND DELIVERY EFFICIENCIES ACROSS THE VALUE CHAIN. ‘DIGITAL FACTORIES’ ARE ONE OF OUR MAJOR DIGITISATION PROGRAMS, WHICH WE HAVE INITIATED DURING THE YEAR AT THE JEDDAH FACTORY.”
30 | LOGISTICS NEWS ME | MARCH 2023 WWW.CBNME.COM COVER STORY LNME The KSA Logistics & Transport Awards 2023 took centre stage in an effort to honour recent successes and acknowledge the future plans of logistics and supply chain organisations from around the region. The awards served both individuals and businesses from a range of industries, including real estate logistics, last-mile, and e-commerce as well as supply chain management and technology. The KSA Logistics & Transport Awards 2023 were presented last month in Riyadh on February 9. The gala luncheon and event, which ran from 1-4 pm, honoured the top players in the logistics and supply chain sectors. Here are all the winners you want to know CELEBRATING THE SUCCESS OF GROWTH IN THE SAUDI LOGISTICS INDUSTRY KSA AWARDS 2023 LOGISTICS & TRANSPORT
LOGISTICS NEWS ME | MARCH 2023 | 31 KSA LOGISTICS & TRANSPORT AWARDS 2023
32 | LOGISTICS NEWS ME | MARCH 2023 WWW.CBNME.COM COVER STORY LNME “Consumers today have rapidly changing needs, and organizations must be ready to respond even in the most challenging of business environments quickly. Automation has proven to be a sustainable and future- focused solution, and it is becoming a competitive differentiator – institutions of all sizes globally are leveraging automation to drive value. We are incredibly proud to have been awarded the ‘Warehouse Tech of the Year’ award at the KSA Logistics & Transport Awards 2023. It is a testament to our team’s hard work and dedication, and we are honoured to be recognized for our contributions to the warehousing industry in the Kingdom of Saudi Arabia. Swisslog will continue to invest in developing innovative solutions that help its customers meet the evolving needs of the industry, and it is committed to being a leader in the warehouse automation space in KSA.” David Dronfield General Manager at Swisslog Middle East WAREHOUSE TECH OF THE YEAR SWISSLOG
LOGISTICS NEWS ME | MARCH 2023 | 33 KSA LOGISTICS & TRANSPORT AWARDS 2023 “Winning the ‘Leaders in Logistics Real Estate Solutions’ award is an incredible recognition for us. We are grateful for the trust that our clients have historically placed in us, because it has been truly instrumental in our success. This award is also a testament to our unwavering commitment towards building state-of-the-art logistics real estate solutions aligned with the objectives of Saudi Vision 2030. I would like to thank team LogiPoint for their relentless pursuit of excellence everyday – without this amazing bunch of professionals leading the charge for us, none of this would have been possible. We are driven by Vision 2030’s goal of transforming Saudi Arabia into a global logistics hub.” Farooq Shaikh CEO, LogiPoint LOGISTICS REAL ESTATE COMPANY OF THE YEAR LOGIPOINT
34 | LOGISTICS NEWS ME | MARCH 2023 WWW.CBNME.COM COVER STORY LNME E-COMMERCE SOLUTIONS SUPPLIER OF THE YEAR Noon Facility in Riyadh | LOGSQUARE “We were pleased to be part of the KSA Logistics & Transport Awards 2023, which featured top-tier players in the industry. 2022 has marked a record year for LogSquare, cementing its position as a regional intralogistics industry leader and E-commerce companies preferred partner. The ability of LogSquare to design complete facilities involving the entire spectrum was successfully tested. It once again expanded beyond small system suppliers to large-scale projects by leveraging its engineering and unparalleled implementation capabilities. During the past year, LogSquare has successfully implemented turnkey projects across MENA and across multiple verticals. Log Square’s projects were designed to handle high volumes, high throughputs, and complex operations. We are honoured to have been named E-commerce Solutions Provider of the Year. We thank the jury and BNC for the award and recognition.” Marwan Khalifé Business Development Manager -MENA at Loqsquare
LOGISTICS NEWS ME | MARCH 2023 | 35 KSA LOGISTICS & TRANSPORT AWARDS 2023 LAST-MILE DELIVERY COMPANY OF THE YEAR J&T EXPRESS MIDDLE EAST “Winning the award for the last-mile delivery company of the year in Saudi Arabia after just one year of operations, is a well-deserved recognition of the colossal efforts exerted by our local team, and its unwavering commitment to offering exceptional levels of service that uphold our global reputation for efficiency, reliability, and trust. It is always gratifying to see swift and successful results; this award surely instills further motivation to deliver upon our growth journey in KSA and the GCC region, as we remain committed to exploring and introducing new innovative services that meet the diversified needs and requirements of our valued customers.” Jane Wan General Manager, J&T Express KSA
36 | LOGISTICS NEWS ME | MARCH 2023 WWW.CBNME.COM COVER STORY LNME WAREHOUSE OF THE YEAR UNITED WAREHOUSE COMPANY “United Warehouse Company is honoured to receive the Award of “Warehouse of the Year 2023. We are honoured to have been recognised and chosen as one of Saudi Arabia’s major national and international players in the supply chain and logistics industry. This is regarded as one of our major accomplishments because it demonstrates our standards and the capabilities of our infrastructure. The continuous efforts in ensuring our customers’ satisfaction by providing top- notch built-to-suit solutions is the major key to this reward. We look forward to further expansion and success.” Eng. Fathi Ba-Isa Managing Director of United Warehouse Company
LOGISTICS NEWS ME | MARCH 2023 | 37 KSA LOGISTICS & TRANSPORT AWARDS 2023 AIRLINE OF THE YEAR SAUDIA CARGO “Saudia Cargo is delighted to have been named Air Cargo Airline of the Year in the inaugural Middle East Logistics and Transport Awards. We are constantly striving to be the best at what we do. Since the inception of Saudia Cargo, we have strived to make it a beacon of trusted and reliable quality service on which our customers can rely 24/7 and of which we can all be proud. This award recognises the dedication of the men and women behind Saudia Cargo’s global operations in delivering various types of cargo on time and safely across continents. Thank you very much!” Aymen Osilan Saudia Cargo’s Executive Director of Marketing and Communications
38 | LOGISTICS NEWS ME | MARCH 2023 WWW.CBNME.COM COVER STORY LNME
N E W S 16 – 18 May 2023 Dubai World Trade Centre Dubai, UAE Connecting the Middle East maritime sector for over 20 years... And now, for the first time, with a new focus on integrated maritime logistics As part of Under the patronage of Register for FREE at SeatradeMaritime-MiddleEast.com #SMLME Supporters, Sponsors & Partners REGISTER TODAY Register free of charge as a visitor and delegate. Simply scan the QR code with your smart device
40 | LOGISTICS NEWS ME | MARCH 2023 WWW.CBNME.COM FREIGHT FORWARDING LNME F ounded in 2021 and inspired by Saudi Arabia’s Vision 2030, AJEX Logistics Services is a Sau- di-based Middle East expert in expedited distribution, logistics, and shipping solutions. A joint venture between Ajlan & Broth- ers Holding Group, a renowned Middle Eastern investment corporation and con- glomerate, and SF Express, a pioneer in China’s transportation and logistics indus- try, AJEX connects people and companies throughout the Middle East, China, and the world. “AJEX emerged from the natural synergies between Ajlan & Bros, a Saudi- based Middle Eastern company with over 60 years of experience in diverse sectors ranging from retail to healthcare and education, and SF Express, a Fortune 500 company and China’s leading transportation and logistics company. AJEX is an expert in one of the world’s busiest trade routes, with roots in Saudi Arabia and China. In fact, China is Saudi Arabia’s top trading partner, with bilateral trade expected to reach $87.3 billion in 2021. AJEX is uniquely positioned to support growing trade across the Middle East and between China and the rest of the world, making it the ideal partner for companies looking to expand their reach into these regions. AJEX is quickly gaining customers’ trust throughout the region thanks to its strong financial backing, well-built infrastructure, and experienced leadership team.” said Mohammed Albayati, CEO of AJEX Logistics Services. AJEX’s strategic growth goal is to become the Middle East’s preferred logistics provider, which is closely connected with Saudi Arabia’s Vision 2030 goal of being a prominent global logistics centre. As a result, it is seeking rapid regional expansion, focusing on increasing its personnel, expanding regional facilities, and developing its client base. This year, the company signed an agreement with Dammam Airports Company to provide its services from KINGDOM’S EXPRESS FREIGHT FORWARDER Mohammed Albayati, CEO of AJEX Logistics Services shares the story behind the company’s origins and future goals
LOGISTICS NEWS ME | MARCH 2023 | 41 KINGDOM’S EXPRESS FREIGHT FORWARDER King Fahd International Airport, and it announced the expansion of its capabilities in the UAE, where it has established its headquarters in the Jebel Ali industrial zone, additional offices in Dubai Airport Free Zone (DAFZA), and an 11,000 square foot warehouse in Jebel Ali Free Zone (JAFZA). AJEX’s land freight and distribution network, which now runs from Riyadh, Dammam, Jeddah, Jubail, Al Hofuf, and Taif in Saudi Arabia, Manama, Bahrain, and Dubai and Abu Dhabi, UAE, is expected to expand to twelve more cities in the Kingdom in 2023. AJEX is also building a fourth warehouse facility in Dammam, with plans to build further innovative warehousing facilities in Quasim, Al Jouf, and Abha. As part of its ambitious expansion goals, AJEX intends to increase its employees. More than 600 people work throughout the Middle East to support current activities. AJEX is committed to developing and preserving an extraordinary workplace by assuring a diverse staff. Presently, the organisation has 21% of female workers, and 56% of all individual contributors in non-operational roles, a statistic much higher than the industry average of 2%. AJEX is a very diversified company, with 42% of employees being Saudi nationals and 30 other nationalities represented. AJEX is also a partner in the ‘Join the Future Program,’ an initiative aimed to provide talented Saudi citizens with in-class and on-the-job training with the Saudi Academy for Logistics (SAL) and AJEX. Since last year, AJEX has employed 37 programme alums permanently. “Saudi Arabia is quickly becoming a leading manufacturing powerhouse, in line with Vision 2030 and the National Industrial Strategy (NIS), as it attracts growing investments in the Kingdom’s non- oil sector. Supported by solid infrastructure and a fast-growing economy, the Kingdom focuses on building its industrial business base, increasing locally produced goods, and driving international trade to realise a competitive and sustainable private sector. AJEX is working to support this Vision by facilitating trade through a wide range of customisable solutions for B2B and B2C businesses and supporting some of the region’s fastest- growing industries, such as E-Commerce and Pharma. Our specialised customer- centric solutions are founded on a thorough understanding of our customers’ challenges, ranging from on-time deliveries to last-mile delivery,” Mohammed stated. AJEX provides fast, dependable, and transparent shipping, logistics, and supply chain solutions to businesses looking to expand their reach across the Middle East by leveraging the infrastructure and capabilities of SF Express and the regional expertise of leading Middle East conglomerate Ajlan & Bros Holding Group. AJEX has the shortest transit times in the GCC, making it perfect for companies requiring stringent, time-sensitive delivery, such as e-commerce and medicines. In fact, these two industries have the most significant growth in the region, boosting the logistics sector’s rise. The E-commerce industry in the GCC region, for example, is predicted to reach $50 billion by 2025, up from $24 billion in 2020, while healthcare is expected to develop at a CAGR of 6.9% between 2022 and 2032, reaching $13 billion. AJEX is eager to assist these industries by meeting their specific requirements. For example, the firm offers value-added E-commerce services such as cash or collect the delivery, returns and reverse logistics, and e-fulfilment. AJEX offers its clients capabilities for biological shipments, vaccinations, patient care and medicine, clinical storage, and distribution with temperature and humidity- controlled storage and transportation facilities to assure product safety.
42 | LOGISTICS NEWS ME | MARCH 2023 WWW.CBNME.COM K AOUN International and dmg events, the SAUDI FOOD SHOW organisers, announced today that the 2023 launch edition has sold out this week during GULFOOD, four months before its opening in Riyadh Exhibition Centre from 20- 22 June 2023. The SAUDI FOOD SHOW is the first to be launched un- der the joint venture between KAOUN International, the global events organising company of the Dubai World Trade Centre (DWTC) and organiser of the world’s larg- est and most influential food trade event GULFOOD, and dmg events, a wholly-owned subsidiary of the Daily Mail and General Trust plc (DMGT). Over the past 28 years, GULFOOD has cultivated the credibility, loyalty, recognition, and support of the global food and beverage sector through an unwaver- ing commitment to deliver- ing tangible global business outcomes and valuable trade deals for participants. For the international food trade, the most significant orders of the year are transacted at GULFOOD annually. The GULFOOD portfolio caters to the entire value chain and is the most trusted event brand in the world’s F&B community. With a massive demand for this first collaborative edition, KAOUN Interna- tional and dmg events are announcing the immediate expansion of the inaugural format, with additional hall structures to accommodate F&B showcases from many more countries. This provides GULFOOD LNME GULFOOD THE INAUGURAL SAUDI FOOD SHOW 2023 SELLS OUT THIS WEEK AT
LOGISTICS NEWS ME | MARCH 2023 | 43 the KSA industry with an uncompromised diversity of suppliers and products. THE SAUDI FOOD SHOW 2024 has become the largest and most significant sourcing event in Saudi Arabia. Trixie LohMirmand, CEO of KAOUN Interna- tional, said, “With such huge growth opportunities, now is the time to be a part of Saudi Arabia’s food and beverage market, and we are incred- ibly proud to be developing into new markets and provid- ing further access for our loyal global F&B communi- ty. The early sell-out success of the inaugural Saudi Food Show manifests this trust, unlocking significant business opportunities in international markets for those partici- pants who have followed the Gulfood brand. We are excited by the direct support in, and success of, our new event and as demanded by our clients internationally, we are excited to launch new products into the expanding Saudi market soon”. “Our customers have come to rely on us as committed and dependable, which puts tangible commercial out- comes front and centre for them,” continued LohMir- mand. Matt Denton, President of dmg events, commented, “Having operated in the Kingdom for over a decade, dmg has established the leading portfolio of trade ex- hibitions by matching quality audiences with local, regional & international vendors to create real trade opportuni- ties. Our joint venture with KAOUN International and the first sell-out edition of The Saudi Food Show builds on this legacy and is hugely exciting. By combining our efforts and focusing on these key principles of quality and trade, we offer unrivalled access to this burgeoning market, and the uptake has been fantastic. These are just the first steps for our partner- ship, and we expect many more exciting announce- ments and developments to come.” The joint venture agreement will see the partners develop an international portfolio of events in the food and hospitality sectors. THE SAUDI FOOD SHOW is set to be the first of many. These new events offer novel solu- tions to connect the global food and beverage industry, providing platforms to unveil new products, services and technologies, address critical challenges and create new business opportunities. “We have had the pleasure of calling Saudi Arabia home for more than 65 years now, and in the past decade, we’ve witnessed Saudi undergo a massive transformation that has solidified its position in the world’s economy. Today, Saudi Arabia represents the largest market in the GCC in many sectors, including the Food and Beverage sector,” added Aamer Sheikh, CEO of Pepsico Middle East. “With that fact in mind, we are happy to announce that PepsiCo will participate in the inaugural edition of the ‘Saudi Food Show’ this coming June. Being a part of such a platform will allow us to engage largely with the F&B sector and learn about current and future opportu- nities in one of the world’s fastest-growing markets. We look forward to being on the ground with our peers from the industry and exploring the various ways we can col- laborate to contribute to the growth of this nation’s ambi- tious vision,” he continued. “Our UK food and bever- age client base have extreme- ly well received the launch of The Saudi Food Show. The interest from small export- ers to larger conglomerates reflects the excitement build- ing around this new event. There is a real focus on the emerging Saudi market, and The Saudi Food Show will help connect our exporters with important contacts in this lucrative market,” said organiser representative Ross Marsh of Tradefairs UK. The Saudi food market continues to grow exponen- tially, providing enormous opportunities for businesses across the sector to flour- ish. As the largest in the Middle East, Saudi Arabia’s food and beverage market is expected to grow at a rate of 4.78% by 2027, and it has set a target of localising 85% of its food processing by 2030. THE INAUGURAL SAUDI FOOD SHOW 2023 SELLS OUT THIS WEEK AT GULFOOD “OUR CUSTOMERS HAVE COME TO RELY ON US AS COMMITTED AND DEPENDABLE, WHICH PUTS TANGIBLE COMMERCIAL OUTCOMES FRONT AND CENTRE FOR THEM.”
44 | LOGISTICS NEWS ME | MARCH 2023 WWW.CBNME.COM W omanhood should not be celebrated on a particular day but rather every day. While we as women juggle many responsibilities and activities that we are ‘supposed to undertake,’ I had the humbling chance to speak with Dana Al Shahrani, who is here to build a mark for herself in a perhaps more male-dominated industry. We talked about her leadership at Amazon, her distinct stance in the business, and how she wants to empower women in the supply chain profession. Dana, who holds a law degree, began her career at Amazon as an Operations Supervisor and was quickly promoted to Site Manager owing to her dedication. “My experience is unusual because my background is far from logistics - I have a degree in Law. Thus, when I applied for the position, I was thrilled to start over in a different pitch,” explains Dana. She supervises the facility’s day-to-day operations as a Shift Manager at one of Amazon’s delivery stations in Dammam, and she is the first woman to hold this position at Amazon in Saudi Arabia. “I manage a team of four supervisors, two of them being women, and all day-to-day operations of the facility to ensure that we always delight our customers with fast and reliable delivery,” adds Dana. Her day starts with a daily stand-up meeting, after which she goes on the floor to watch the running cycles as well as check on the team if they are facing any challenges. “As a site leader, from the moment I walk into the deliv- ery station daily, I have a whole team to support. Also, a vital part of my day is connecting with cross-functional teams across the business and leaders from different sites and offices,” says Dana. We all know that effective leadership is vital to success in such a complex role, which Dana underscored by describing her experience at Amazon. “I have learned many leadership skills WOMEN’S DAY LNME CELEBRATING WOMANHOOD On the occasion of Women’s Day this month, Vibha Mehta interacts with Dana AlShahrani, Shift Manager, Delivery Station Regional Management at Amazon Saudi Arabia, giving a small tribute to women in the logistics industry
LOGISTICS NEWS ME | MARCH 2023 | 45 here at Amazon, one of the most important ones is Customer obsession, as I feel like it shapes all the work that we do, cause custom- ers can be more than just our shoppers but could also be our partners, associates, supervisors and DA’s, giving a great customer experience to all these individuals is a goal that won’t change.” Additionally, she would also want to acknowledge her le- gal training, which has aided her in people management and helped her communicate more effectively with the team to provide the best sup- port possible. When we continued the chat, I was curious to know how she felt about being a woman in the logistics sector, as logistics and sup- ply chain have been unu- sual career choices for any woman. “It’s an unconven- tional profession, but with an eight-month-old kid and a master’s degree, it’s quite a challenge,” Dana exclaims. “Balancing my personal as- pirations with the quick pace of e-commerce logistics is a challenge, but one that I am driven to conquer, and it is this that makes me feel spe- cial.” Yet, Amazon’s work culture guarantees that every worker, regardless of gender, ethnicity, or background, is empowered to offer their best and supported with world-class training pro- grammes and clear avenues for advancement. “I truly believe that we find our true selves where there is courage. I have a lot of courage and nerve, as well as patience. I am also very persistent when it comes to achieving what I set out to do,” states Dana when asked how she fits herself in a male-dominated industry. ‘Learn and be curious,’ one of Amazon’s Leadership Principles, has motivated her and helped her progress professionally – which means that leaders are con- stantly looking to improve themselves, intrigued about new possibilities, and acting to explore them. “I don’t usually shy away from chal- lenges and am willing to fail to succeed in the long run.” Dana’s professional pro- gression has also been led and supported by Amazon’s Leadership Principles, with a critical value of learn- ing implying an excellent customer experience. “I set myself aside from the con- gested logistics marketplace by making sensible business decisions. In addition to maintaining visibility for myself and my team through little and large successes, I invest time in myself and my profession by remaining current on industry demands and trends.” The COVID-19 pandemic has expedited consumer acceptance of online shop- ping and digital payments, necessitating rethinking every business’s goods or service delivery approach. As a result, the MENA logistics industry is on a solid development trajectory. The emphasis currently is on improving the efficiency and resilience of logistics and supply chain models. Dana says, “Technology and automation are key ena- blers in this space. Amazon is considered a pioneer in building and implementing advanced technologies like Artificial Intelligence (AI), Machine Learning (ML) and Computer Vision (CV) to make our facilities safer and more efficient and to meet evolving customer needs. We constantly innovate in our operations and transporta- tion to improve the customer and employee experience.” Highlighting women and their role in not just logistics but any industry, Dana strongly believes that, “a lot of the challenges faced by working women revolve around the perception of what a woman can and cannot do, and this includes our perceptions that are sometimes driven by social and cultural factors.”. Times have changed. And today, things are changing at light- ning speed. “I feel blessed to be living and working in the 21st century, where more women enter the workforce and become leaders in their fields. Challenges do exist, but a positive tide of change enables all women to face these challenges and continue to grow to our full potential.” As a logistics woman pursu- ing a master’s in logistics and supply chain manage- ment, Dana encourages young women to realise that nothing is complicated but to focus their efforts and time appropriately. “I would like to tell all Saudi women that as the Saudi economy continues to diversify, the opportunities for women are limitless. Logistics and supply chain is a fun field where you can put both your physical and mental abilities to work. Across the world, women are still in the minority in this sector, which gives me a respon- sibility to encourage more women to venture into this field. Within Amazon, I see so many women taking dif- ferent types of roles across Technology, analytics, HR, marketing and charting successful career paths,” concludes Dana. CELEBRATING WOMANHOOD | DANA ALSHAHRANI Dana AlShahrani, Shift Manager, Delivery Station Regional Management at Amazon Saudi Arabia
46 | LOGISTICS NEWS ME | MARCH 2023 WWW.CBNME.COM START-UP LNME T he Kingdom of Saudi Arabia is capitalising on every industry it can while preparing to implement the Saudi Vision 2030. The oil and gas sectors are seeing several giga projects emerge, but the F&B sector has much more unrealized potential. The local food supply technology market is new and expanding swiftly. Business owners are now looking for the same ease in their internal operations that they’ve enjoyed at home since COVID drove the adoption of consumer apps. As economies begin to expand, the number of tiny cafés, restaurants, and mom-and-pop supermarkets tends to rise quickly. “We see this part of the sector, the long tail, growing in double digits at the moment, however, the current food network is built to support big businesses,” said Salman Attieh, Chairman of NOMU. “The suppliers that are currently in place are, as far as we can tell, both unable and unwilling to meet the demands of this growing market. In addition to not being financially desirable, they simply lack the necessary skills. To supply the tiny masses, a brand- new, effective, efficient, and dependable food network is necessary.” The food sector is becoming more digital upstream. Delivery to consumers is efficient, POS systems are sophisticated, and there are many payment options. The next frontier is availability of food supply. Riyadh-based, NOMU is a holding group created after merging two companies, Jumlaty and Appetito. KSA- based Jumlaty is an end-to-end supply chain as a service solution for small and medium restaurants, a one-stop shop aggregator of all major food suppliers. MENA’S NEW FOOD-TECH SUPPLY CHAIN PLATFORM NOMU Vibha Mehta, Editor of Logistics News ME, speaks with Salman Attieh, Chairman of NOMU on the shifting food-tech landscape in the region
LOGISTICS NEWS ME | MARCH 2023 | 47 Appetito, founded by Shehab in 2020 with the goal of bypassing the middle mile network and providing families with trustworthy, inexpensive, and high-quality food. Little mom-and-pop grocery stores control 90% of the country’s grocery market, with several intermediaries between them and the main supplier. “This results in significant inefficiencies, which are paid for by the final user. Families may benefit from a far more individualised shopping experience and greater value products when a direct provider ships directly to them,” adds Salman. After an acquisition, Appetito extended its business into Tunisia and Morocco and launched a new sector that caters to small F&B establishments. At the same time, Salman launched Jumlaty in 2020 with the goal of providing small restaurants with dependable, economical, and high-quality goods by constructing a contemporary food network specifically for these kinds of businesses. a supply chain as a service option that provides peace of mind to F&B businesses. providing a full range of services, including forecasting, storage, and scheduled delivery. During the lockdown, Jumlaty also developed a retail service that focuses on helping families and has had remarkable growth. Salman shares, “We were introduced through mutual investors and discovered that we are both attempting to tackle the same issue. More significantly, though, we discovered that we have similar beliefs. Building a sustainable business is the first of these, as it is a quick route to positive unit economics. The second is utilising new technologies to better serve our clients – decision to join our ventures was made with ease because of shared values.” Further, a significant obstacle for the MENA region’s food supply technology business is the rise in food prices. Salman continues, “Since we aim to offer an egalitarian experience for all of our clients, this is a major worry for us right now. Insufficient storage room for small and medium-sized restaurants, a lack of trustworthy last-mile solutions for food providers, and supplier preference for larger locations over smaller enterprises are further difficulties.” These elements may make it difficult to manage inventories and rely on suppliers, leading to problems putting out fires and worse profitability for smaller eateries. The sector may also encounter difficulties implementing new technologies like AI scheduling and robots as well as successfully training people from various ethnicities. As an expert in the food supply technology sector in the MENA region, Salman believes that the NOMU has the potential to shape the industry in several ways. “Firstly, NOMU seeks to provide a comprehensive supply chain solution to address the issues that small and medium-sized restaurants in the area face, such as unreliable suppliers and a lack of storage space,” says Salman. He feels that if the food supply chains for small and medium- sized restaurants become more dependable and effective as a result, they may be able to compete more successfully with larger establishments. “Moreover, NOMU is using cutting-edge technologies, such as AI scheduling and robots, to improve the precision and efficiency of its food delivery operations.” This might act as an example for other food supply companies in the region, encouraging further innovation and competitiveness on the market. Furthermore, NOMU’s emphasis on providing excellent customer service may contribute to raising standards and expectations in the MENA region’s food supply tech sector. including new capabilities like AI Dynamic pricing, AI Chat ordering, and Group Purchasing. Businesses may be inspired to improve their operations and provide better customer service as a consequence. “By tackling important challenges, integrating cutting-edge technology, and improving customer service, NOMU has the ability to completely transform the MENA region’s food supply technology sector,” states Salman. And finally, the food business is becoming more digital upstream. There are various payment choices, sophisticated POS systems, and effective client delivery. The availability of food is the next frontier. The local food and beverage (F&B) market is evolving as a result of automation, as are the associated logistical operations. Several F&B firms are utilising automation to optimise their operations and cut expenses as a result of the rising cost of labour and the increased demand for meal delivery. The use of technology for food and beverage production, distribution, and procurement is referred to as automation in the food and beverage supply chain. “This involves automating inventory management, streamlining production procedures, and enhancing supply chains utilising sensors and data analytics. Salman concludes, “This will enhance the operational responsiveness, agility, and effectiveness of F&B enterprises, lowering costs, enhancing customer service, and boosting profitability. In the next five years, 10 million households and 1 million businesses will be served by NOMU, which now targets young, working families and small restaurateurs. NOMU | MENA’S NEW FOOD-TECH SUPPLY CHAIN PLATFORM
48 | LOGISTICS NEWS ME | MARCH 2023 WWW.CBNME.COM FINTECH LNME F inaMaze is the MENA’s Hybrid hybrid human/robot digital wealth manager in the MENA. It is dedicated to addressing persistent issues facing the investment sector in the area and beyond. FinaMaze links machine learning with human behavioural science to offer individualised investing solutions by combining sophisticated AI with Data Scientists, Quantitative Finance, and Software Engineers. The central concept behind FinaMaze is ‘AI at the service of Humans,’ with a strict code of ethics, transparency, and a dedication to realistic investing situations and results. They also have an extended Investment Management License and are regulated by ADGM’s Financial Services Regulatory Authority (FSRA). Here is everything you want to know about Mehdi El Amine Fichtali’s insights… Please walk us through the services you offer. FinaMaze is setting a new standard in personal investments, providing unparalleled personalisation and performance for both our B2C and white-label B2B2C clients. Our unique hybrid human/AI framework creates, manages, and executes trades for custom investment portfolios that span global and regional stocks, fixed income and sukuks, commodities, and long/short hedge fund strategies. Our solution also offers investors unprecedented access to private equity and VCs, with a minimum investment of 10k USD. FinaMaze’s dynamic rebalancing model considers over 4,000 possible risk profiles, allowing us to deliver superior risk-adjusted returns while respecting each investor’s tailored risk controls. With our cost- effective and diversified portfolios, clients can rest assured that they are getting the most out of their investments. How would you describe the FinTech landscape shaping in KSA? The FinTech landscape in KSA is undergoing rapid evolution, driven by a convergence of four key factors: 1. The government and regulators are prioritising promoting a digital economy, creating an environment conducive to the growth of FinTech startups. 2. The availability of funding from family offices and venture capitalists provides a vital injection of capital into the sector. 3. The market potential in KSA is attracting founders from within the country, the region, and beyond. AND THEIR STANCE AT LEAP 2023 FINAMAZE ON KSA’S FINTECH LANDSCAPE Mehdi El Amine Fichtali, Founder and Chief Executive Officer of FinaMaze shares his insights on the ever-evolving Saudian market
LOGISTICS NEWS ME | MARCH 2023 | 49 4. Consumers’ increasing adoption of digital financial services is creating a receptive market for FinTech innovations. These converging factors shape a dynamic and rapidly evolving FinTech landscape in KSA, with significant potential for further growth and innovation. How was it participating for FinaMaze in LEAP 2023? Could you walk us through your experience? We had the opportunity to connect with the regional stakeholders we already know and with players from outside the region with whom we shared lessons learnt and explored opportunities for global partnerships and cross-pollination. One notable event was our participation with other fintech leaders in a roundtable hosted by Fintech Saudi and the CMA, which focused on the crucial role of fintechs in driving KSA’s economic transformation. During the roundtable, we discussed the necessary ecosystem evolutions to unlock the full potential of the fintechs in the Kingdom and position the region as a FinTech hub. Additionally, the conversation highlighted the importance of regulatory frameworks and policies that encourage the growth of a thriving FinTech ecosystem by promoting R&D and innovation. What are the core challenges the FinTech industry is currently facing? The FinTech industry is currently encountering challenges both globally and regionally. A global challenge is a shift in investor mindset from a ‘grow your market share at any cost’ to a more cost-conscious approach. Venture capitalists are closely monitoring B2C customer acquisition and retention costs, which could lead to reduced funding for some fintechs and may require painful reorganisation. On the regional level, regulators know they need to devote more resources to keep up with the rapid pace of innovation and gradually ease some restrictions to prevent a complex and fragmented regulatory environment. The absence of a robust strong pan-regional license passporting creates additional hurdles and expenses for the regional fintechs, impeding their competitiveness with the European fintechs that can attain scalability faster thanks to their more integrated regulatory landscape. Furthermore, there is intense competition for local talent as not only FinTech but also banks and governments compete for the same pool of highly skilled workers. Where do you see the FinTech industry moving forward in the future? During the 2020-2021 era, venture capitalists prioritised B2C startups that grow at any cost, but in 2022-2023 the narrative abruptly pivoted to controlling expenses and surviving. Looking ahead, I anticipate more interest towards resilient, multi-year-income and profitable startups, which you find more in the B2B space. For the fintechs in the GCC region, I predict a shift towards the players that focus on adding value to incumbent banks and financial institutions through flexible and easy-to- implement technology and new faster- better-automated processes that assist them in their digital transformation. For me, 2023 will be the year of Intellectual Property, favouring B2B FinTech with unique proprietary technology and processes over B2C companies that rely heavily on social media and mass marketing. Are there any strategic alliances made for 2023? Consolidation within the FinTech industry has begun globally, with larger fintechs acquiring smaller ones to bolster their offerings and achieve technology and marketing synergies. I anticipate seeing some M&A activity in the MENA region, but more from established financial institutions acquiring minority stakes in select B2B fintechs rather than majority stakes. These financial institutions will target fintechs with whom they already engage at the business level and possess unique Intellectual Property or Technology. Their B2B contracts will ensure continued growth and create value for startup shareholders. As a result, pure venture capitalists will face competition from these financial institutions’ strategic corporate venture capital arms when it comes to capital deployment and deal origination. FINMAZE ON KSA’S FINTECH LANDSCAPE AND THEIR STANCE AT LEAP 2023
50 | LOGISTICS NEWS ME | MARCH 2023 WWW.CBNME.COM ENERGY LNME A ggreko is participating in ‘The Big 5 Saudi’ as the event’s Energy Partner to create awareness of how construction companies in the region can meet the Saudi Net Zero 2060 target by switching to energy from batteries, modular solar or by adopting a hybrid solution. Aggreko is already involved in megaprojects in Saudi Arabia and the region, providing flexible and sustainable energy solutions for construction sites. According to Adam Read, Head of Sales - Middle East, Aggreko: “Saudi Arabia has set an ambitious timeframe to achieve their net zero targets, which leaves no room for slow decision-making. The construction sector is one of the main sectors that produce carbon emissions, and the industry must identify and implements innovative energy solutions that offer substantial carbon reduction opportunities. All construction projects need a continuous energy source right from start to finish. Currently, energy used in the construction sector includes diesel for machinery and electricity for powering buildings and tools. There are many opportunities to save energy by using battery storage, modular solar or a hybrid solution.” Aggreko offers fully integrated, plug- and-play battery energy storage solutions that deliver savings in fuel and emissions when paired with a generator. It can also be paired with renewable energy sources like solar panels. Aggreko has extended its energy storage range to help construction companies meet their unique requirements. For example, site power requirements often run at contrasting levels at different times of the day – sometimes, it results in generators running at less than 25% of their capacity. That same generator will be responsible for peak hour energy supply too. Aggreko’s efficient generators will handle the rise in power requirement, but when demand is lower, it will switch to batteries, thus saving energy. This hybrid model can also be scaled as needed ensuring sites use only the power they need, further reducing fuel consumption, emissions and cost and helping construction companies meet government regulations on carbon emissions. It is not only Saudi Arabia that has set net zero goals. Governments across the region are moving towards a decarbonised future. The UAE has pledged to achieve net-zero emissions by 2050, making the Emirates the first Middle East and North Africa (MENA) nation to do so. Adam Read, Aggreko, commented: “Whilst technologies like battery and solar will pick up the pace, gas is expected to continue to play a “critical role” in regional power generation. Gas produces fewer carbon emissions than diesel and can be a short-term solution for large- scale construction projects to decarbonise by combining solar or batteries.” However, access to a gas pipeline can be a challenge for construction sites in remote locations. Aggreko offers a ‘virtual pipeline’ solution for such sites. A virtual pipeline is a substitute for a physical channel where the gas typically conveyed through a conventional gas pipeline is transported as LNG to the point of use by sea, road or rail. Where no gas pipeline or grid connection exists, the LNG or CNG virtual pipeline enables natural gas to be used as the primary fuel for power generation using Aggreko’s modular generators. In addition, an LNG or CNG virtual pipeline can provide backup energy where natural gas pipeline capacity is limited. At The Big 5 Saudi, Aggreko is showcasing its modular solar solution, batteries, and capabilities for serving customers of large construction projects. Visitors can learn more about Aggreko’s solution at stand OS 215 and OS 190 at the event, which runs till February 21, 2023 at Riyadh Front Exhibition & Conference Center. THE PARTICIPATION WILL BE STAGGING ACCELERATIONS FOR THE SAUDI ARABIA’S GREEN ENERGY TRANSITION AGGREKO HIGHLIGHTS LOW-CARBON ENERGY SOLUTIONS AT THE BIG 5 SAUDI
52 | LOGISTICS NEWS ME | MARCH 2023 WWW.CBNME.COM CONSULTANCY LNME W ith a physical presence in The Kingdom of Saudi Arabia, a strong regional presence across the Gulf, including Dubai, Abu Dhabi, Bahrain, Doha, and Muscat, and a global office network spanning Europe, Asia, and Africa, PRO Partner Group is the leading company formation, PRO, and corporate services provider. This gives it the ability to help companies from five continents set up and carry out their commercial plans in the Saudi and GCC markets. What are the steps for non-middle eastern companies to enter the market? There are three main steps in the process of starting a business in the Kingdom. The first step is creating the legal structure that grants official consent to run a business in Saudi Arabia. It involves crucial actions like: > Legalisation and attestation of documents at the Saudi consulate/embassy of the company owner’s country > Applying for MISA licence and company registration > Drafting the Local Articles of Association (AoA) TO ENTER KSA? HOW CAN SUFFICE COMPANIES PRO PARTNER GROUP James-Elliot Square, Regional Business Development Manager at PRO Partner Group, speaks with Logistics News Middle East about the Saudi Arabian logistics market, including current trends, how to establish a business there, and where the sector is headed in the next years
LOGISTICS NEWS ME | MARCH 2023 | 53 HOW CAN PRO PARTNER GROUP SUFFICE COMPANIES TO ENTER KSA? > Commercial Registration (CR) issuance > Registering with Chamber of Commerce (CoC) and activation of the account The second stage authorises the legal organisation to employ personnel and necessitates registration with: > The Ministry of Labour > The General Organisation for Social Insurance (GOSI) > The General Authority of Tax and Zakat (GAZT) > Registering a physical office address Obtaining the residency for the General Manager of the business the last step. After this, it was necessary for the GM to create a bank account, after which he or she had to go ahead and register on the Ministry of Human Resources and Social Development’s online site, do a health check, get health insurance, and complete a health check. Do you work with any logistics companies? Furthermore, PRO Partner Group has helped establish several logistics companies throughout the GCC, including in Saudi Arabia. We receive a minimum of 4-6 inquiries per week about the development of logistics companies and related services throughout PPG regional offices. A recent client in KSA wanted a business set- up that specialises in removal, relocation, and records management. Your views with regards to special efforts in line with Saudi vision 2030 The Kingdom is working hard to establish itself as the top global logistics and industrial centre. As part of Saudi Arabia’s Vision 2030 for economic diversification, the National Industrial Development and Logistics Program (NIDLP) is one of the most important initiatives. Since the Vision 2030 objectives were revealed in 2019, the ‘Logistics Licence,’ which aims to improve work in the logistics sector and maximise on foreign direct investment into the economy, has been introduced. It aims to develop and raise the logistic performance index (LPI) in the Kingdom through the services provided. Your views with regards to the plans for the new 59 logistics parks To encourage the development and growth of exports, e-commerce, and re-exports, the Kingdom has proposed plans for creating more than 60 logistic zones inside its borders. The development of these zones will promote trade via land ports, railroads, ships, and aeroplanes. The National Transport and Logistics Plan placed a strong emphasis on the value of modernising and maintaining the nation’s transportation infrastructure in order to support the Saudi economy. These plans have already begun to take shape. The King Khalid International Airport in Riyadh is near to the Integrated Logistics Bonded Zone (ILBZ), which was established by the General Authority of Civil Aviation (GACA) in October of last year. The opening of this zone will help increase the nation’s shipping capacity. These programmes are essential to achieving the challenging objectives of growing various industries, such as e-commerce, from 6% to 23% by 2030. James-Elliot Square, Regional Business Development Manager at PRO Partner Group
54 | LOGISTICS NEWS ME | MARCH 2023 WWW.CBNME.COM T he Greek technol- ogy firm Ves- selBot, specialising in calculating the Scope 3 carbon footprint of supply chain transportation, has re- vamped its corporate identity and unveiled a brand-new website and logo. The com- pany’s new logo and website both incorporate the key components that characterise its rebranding. The first component is lines, which represent the ‘routes’ each ship, aircraft, and truck in the supply chain takes to move goods from one loca- tion to another. The second component colours, namely the blue, green, and green of the sea and sky. VesselBot has been in business for six years and is well known in the American, European, and Japanese markets. The company’s pro- prietors early on recognised the significance of GHG Emissions thanks to their vision and sensitivity to the broader world and ecology. The technology employed by VesselBot measures carbon emissions (Scope 3 transpor- tation emissions) brought on by moving cargo (food, prod- ucts, materials, etc.) by truck, ship, or aeroplane around the globe, namely, along the supply chain. Scope 3 is the hardest to quantify since it deals with indirect carbon footprint (more complex than Scope 1 & 2). It concerns CO2 emis- sions that are released into the atmosphere indirectly by all business partners rather than directly by each corpo- ration. The carbon dioxide emissions from the supply chain of commodities trans- ported by ship, aircraft, or truck throughout the world are measured by VesselBot, the only business operating in the global market, with an accuracy of 92%. VesselBot assists businesses in measur- ing, optimising, and lower- ing their expenses as well as determining their CO2 reduction plan through this accurate measurement. Lastly, customers of VesselBot mostly come from the CPG (consumer packaged goods) – food, ap- parel, electrical, healthcare (pharma & equipment), construction (heavy mate- rial handling), automotive sectors, freight forwarders, and supply chain visibility organisations. The Smart Freight Center has validated the company’s GHG Emis- sions Monitoring System since the created technol- ogy is based on the GLEC framework and GHG Protocol principles. SUPPLY CHAIN LNME VESSELBOT LAUNCH THEIR NEW CORPORATE IDENTITY
A MEMBERS OF EMIRATES TRANSPORT BUSINESS CENTERS: