Driving the future of global trade: UAE and Singapore

A rapidly evolving trade environment is driving global logistic hubs, Singapore and the UAE, to deepen collaboration and accelerate technological innovation.

December 4, 2024

6 mins

Corporate & investment banking

As global trade dynamics shift under the pressures of geopolitical and macroeconomic forces, the United Arab Emirates (UAE) and Singapore are emerging as frontrunners, proactively adapting to and shaping this evolving landscape.

This was the focus of the recent Investopia Global – Singapore event, co-organised with Standard Chartered.

Maisie Chong, Global Head, Receivables Purchase & Head, Trade and Working Capital, ASEAN and South Asia, at Standard Chartered, led a discussion at the event featuring senior trade industry experts, delving into the transformative forces changing global trade and the strategic roles of Singapore and the UAE as essential logistics hubs integral to the global supply chain.

The panel discussion titled “Navigating New Trade Routes: The Strategic Role of UAE and Singapore as Major Logistics Hubs” featured perspectives from Ahmed Bin Sulayem, Executive Chairman and CEO of Dubai Multi Commodities Centre (DMCC); Denise Pereira Carrie-Anne, Director of Trade Division at the Ministry of Trade and Industry of Singapore and Head of International Expansion and Strategic Partnerships at Singapore Trade Data Exchange (SGTraDex) Services; Niki Frank, CEO of Asia Pacific, DHL Global Forwarding; and Salah SharafAl Hashmi, CEO of Emirates Logistics and Vice-President of the Sharaf Group.

Expanding global relevance

Singapore and the UAE play pivotal roles in global trade, moving billions of dollars’ worth of goods across their borders. Their shared strengths and strategic synergies further reinforce their positions as global trade leaders. One of the key strengths underscored by the speakers was the close trade links between the two countries. The UAE was Singapore’s largest trading partner and investment destination in the Middle East and North Africa region, in 2023.

Panellists emphasised the importance of regional and global partnerships, as well as open markets, as pillars supporting sustained prosperity for both nations. Since 2013, duty-free access under the free trade agreements between Singapore and the Gulf Cooperation Council, of which the UAE is a member, has bolstered trade between the two nations.

Both countries have also solidified their standing in the global trade ecosystem through continued investments, partnerships and innovations. The speakers noted the UAE’s strategic position as a bridge between Asia, Europe and Africa, as well as its close links to the Americas. These connections are a result of its significant investments in transport infrastructure – including world-class airports and strategically located seaports – which have encouraged companies around the world to use the UAE as a logistics hub and supported its growing stature in international trade.

Singapore is home to the largest container transshipment centre in the world, and its government prioritises proactive measures that help the city maintain its competitiveness in global trade. Key initiatives highlighted during the discussion include the diversification of trade links, active participation in shaping international trade rules, and fostering a supportive domestic ecosystem that enables companies to effectively navigate new opportunities and challenges.

Adapting to geopolitical and technological shifts

Any discussion about international trade in the current global environment would be incomplete if it did not address two of the most significant trends reshaping trade – geopolitical developments and technological advancements – and the challenges and opportunities they present.

Panellists highlighted security challenges in the Red Sea – a major conduit for global trade – and other crises in the region that have disrupted long established trade routes, making the transport of goods across regions more expensive. This has given rise to “short-haul sourcing”, where large companies are shifting production closer to their main bases to reduce the risk of disruptions.

As a result, regionalism is on the rise, with countries and regional blocs forming new trade agreements to secure economic stability, the speakers noted. One of the more prominent agreements entered by the UAE in recent years is its Comprehensive Economic Partnership Agreement (CEPA) with fast-growing India, which came into effect in May 2022. The UAE also recently expanded its free trade agreements in Asia Pacific, with a new CEPA with Vietnam in October 2024 and concluded negotiations with Australia in September 2024.

Singapore, which has an extensive network of free trade agreements, including with major economies like the United States and China, has sought to address the geopolitical shifts by seeking to ensure that it continues to play an active role in shaping international trade rules and standards. Singapore is also focused on leveraging digital technology, along with innovation and upskilling, to drive resiliency and agility.

Optimising operations with AI

With automation now a common feature of the logistics industry – which has been an early adopter of the technology – the panellists highlighted the rising importance of artificial intelligence (AI) in reshaping trade processes across Singapore and the UAE.

For instance, AI-powered analytics are enhancing real-time visibility and transparency across supply chains, allowing companies to better predict arrival times and manage disruptions effectively. Investments are also being channelled towards the further integration of AI in logistics, which is key to further optimising operations, reducing costs, and improving overall service quality. To that end, Singapore’s government is investing heavily in strengthening the country’s digital infrastructure through platforms such as SGTraDex, which Standard Chartered is a founding partner of, to facilitate the exchange of information and interoperability among supply chain partners.

Private sector partnerships and skills development are also seen as integral to support the successful deployment of advanced technologies such as AI and drive greater efficiencies, the audience heard. Looking ahead, as Singapore and the UAE both strive to enhance their roles as major hubs of global trade, Standard Chartered’s Chong emphasised the immense potential for and the merits of future collaboration, noting:

“By building on partnerships and advancing technological innovation, both countries are well-positioned to thrive in an increasingly dynamic and complex trading landscape. Developing cutting-edge solutions serves the evolving demands of the market, streamlines processes, enhances visibility across the supply chain and strengthens its ability to withstand future shocks. And, by doing so, Singapore and the UAE can become even more integral to international trade.”