John Pearson (left) addresses the media in Dubai.
sajad ahmedDeputy Business Editor
The UAE was ranked sixth out of 171 countries in the recently released DHL Global Connectivity Index 2022. DHL and NYU Stern School of Business announced the findings at a press conference in Dubai.
According to the report, the Netherlands remains the most globalized country, followed by Singapore and Belgium respectively. The data shows that Switzerland and Ireland are ranked 4th and 5th respectively for their connections to the world.
The index provides reliable findings on globalization trends by analyzing 13 types of international trade, people, capital and information flows.
John Pearson, CEO of DHL Express, said: “The UAE is one of the world’s solid growth stories and an important hub for global trade and connections. The country plays an important role in facilitating the flow of trade and the movement of people , because it offers one of the best infrastructures in the world.”
He added: “The pace of trade growth in the UAE has been remarkable and the innovative approach has made the country an attractive destination for global businesses. The country is so important to DHL Express that we will be opening our second in Abu Dhabi. hub next month as well as expanding our Meydan facility.”
He further said, “The increase in inbound and outbound flights from Dubai to the world, especially Asia, has made the UAE one of the key hubs for global trade.”
The index provides an in-depth report on the current state of globalization and its prospects. It analyzes data from 171 countries and territories to reveal how trade, people, capital and information flow around the world.
The report shows that international flows have shown remarkable resilience in the face of recent shocks, such as the Covid-19 pandemic and the war in Ukraine. After a slight decline in 2020, the DHL Global Connectivity Composite Index rose back above pre-pandemic levels in 2021. Currently available data suggest further growth in 2022, although some traffic growth is slowing. By mid-2022, international trade in goods is 10% above pre-pandemic levels. By 2022, international travel will still be 37% below 2019 levels, but double compared to 2021.
“The latest DHL Global Connectivity Index data clearly debunks the perception that globalization is in reverse,” concluded John Pearson. “Globalization is more than just a buzzword, it is a powerful force making our world a better place. By breaking down barriers, opening markets and creating opportunity, it is enabling individuals, businesses and entire nations to thrive like never before . As we continue to embrace globalization, we can build a brighter future that benefits us all, creating a world that is more connected, prosperous and peaceful than ever before.”
US and China: The DHL Global Connected Index proves that the US and China are decoupling in many areas. Looking at 11 types of trade, capital, information, and people flows (such as merchandise exports, M&A transactions, and scientific research collaborations), the share of 8 of the 11 types of U.S. flows to China has declined since 2016. During the same period, China’s share of traffic to the US declined in 7 of 10 genres with Chinese data. Several of them were down sharply. Still, the United States and China are far more connected than any other two countries that don’t share a border. Moreover, the data show that, so far, the decoupling between the two countries has not led to a broader fragmentation of global flows between the rival blocs of countries.
Regionalization: The index also shows that the predicted shift from globalization to regionalization has not – at least not yet – materialized. The average distance over which trade, capital, information and people move has increased over the past two decades, and during the Covid-19 pandemic, trade has traveled even longer distances. The only category that has seen a notable shift toward regionalization in the near term is the movement of people. This is due to drastic changes in travel patterns during the Covid-19 pandemic.
“Whether future trade patterns will become more regionalized remains an open question,” said Steven Altman, senior research scholar at the Center for Future Management at NYU Stern School of Business and director of DHL’s Globalization Initiative. “Many companies and governments are focusing on nearshoring to regionalize their supply chains, and regionalization can bring huge business benefits. On the other hand, more than half of trade already takes place within regions, and the benefits of long-distance trade are still significant , especially as inflation remains high, economic growth slows and container freight rates retreat.”