Dubai, Riyadh emerging top commercial hubs globally, says report
DUBAI, 3 days ago
The cities of the GCC are rapidly establishing themselves as leaders in business, industry, and mobility, according to Oliver Wyman Forum, which underscores the rise of fast-growing urban centers of Asia, Africa, Latin America, and the Middle East.
Dubai ranked 4th as a mobility hub and 8th as a commercial hub, while Saudi capital Riyadh ranks 15th amongst the commercial hubs globally, stated Oliver Wyman Forum in its 'The Cities Shaping The Future' report.
This new landscape presents an enormous opportunity for corporations, and the new Cities Shaping The Future index ranks cities across Asia, Africa, Latin America, and the Middle East in four categories:
*Export Champions benefiting from shifts in global supply chains.
*Mobility Connectors that facilitate the movement of goods and people.
*Commercial Hubs with vibrant corporate, industrial, retail, and hospitality sectors.
*Climate Resilient Cities less exposed to risks of flooding and extreme heat or taking action to strengthen their resilience.
Ranking the business attractiveness of 1,500 cities in those regions, it reveals a shift of the global economy’s center of gravity away from the North American and European markets that powered the 20th century.
The findings reveal a global economy undergoing its biggest transformation in a generation.
Geopolitical tensions, protectionist pressures, and a wave of industrial policies are prompting corporations to rethink where they produce and market their goods and services to make their businesses more resilient, said Oliver Wyman Forum.
At the same time, demographic shifts are fueling the emergence of new centers of production and consumer demand. This is happening most dramatically and visibly in the fast-growing cities of Asia, Africa, Latin America, and the Middle East, it stated.
The key ranking makes Dubai a major regional and international mobility hub that will benefit further from global growth rebalancing and supply chain shifts.
The shift of supply chains and the rise of India’s manufacturing will strengthen Dubai’s role as a regional and global cargo hub, stated the report.
On the Dubai growth, the Oliver Wyman Forum findings said Jebel Ali Port ranks among the world’s top 20, serving as a major transshipment center for countries of the GCC, the Indian subcontinent, and Africa.
Owned by Dubai-based DP World, the port is part of an expanding global network that includes 18 ports and terminals across Asia Pacific and ensures that the emirate is connected to a region that accounts for 40% of global trade.
Dubai is a global aviation hub and home to the world’s busiest international airport, receiving over 90 million passengers in 2024, with flights to over 250 different cities. Without Dubai, connectivity between cities in Africa, the Middle East, Asia, and even Latin America would be significantly weaker, it stated.
Riyadh ranks 15th amongst the commercial hubs across the world.
The Saudi capital is a rapidly growing commercial hub with a strong retail sector and corporate presence, and ambitious aviation plans.
The city’s rise reflects the importance of national industrial policy, a key megatrend. Riyadh’s commercial landscape has changed rapidly during the past 10 years, even as a range of so-called giga-projects transform other parts of the country.
The city may equally benefit from supply chain de-risking, as manufacturers seek options outside of China, especially in sectors that are energy intensive or reliant on petrochemical inputs.
Riyadh has an affluent and strong retail sector compared with some other hubs. Luxury brands have a strong presence in the city and the number of five-star hotels is growing rapidly.
Global retailers are also expanding their footprint. A vibrant international tourism sector boosting air connectivity and retail is a common feature among the largest commercial hubs on the report’s list.
Riyadh’s role as a hub for a large domestic market also contributes to its ranking. The city serves as headquarters for a large and growing number of listed domestic companies. The number of multinationals based in the city is smaller but expanding rapidly in line with the economy’s growth.
Ben Simpfendorfer, a Partner at Oliver Wyman, based in Hong Kong, said: "The cities of the GCC are rapidly establishing themselves as leaders in business, industry, and mobility. With a combined population of 42 million and a GDP of $1.815 trillion, the Gulf's urban centers present substantial opportunities for growth and innovation."
"This progress is driven by the fact the GCC is a vital connector between Asia, the Middle East, and Africa, fostering the flow of capital, talent, and technology," he added.-TradeArabia News Service
