The Secretary-General of the Union of Arab Chambers, Dr. Khaled Hanafy, during his participation in the twenty-eighth annual Arab-German Economic Forum, held in Berlin, Germany, during the period 19-21 May 2025, stressed that "the logistics and aviation sector in the Middle East and the world is undergoing radical transformations due to regional conflicts, global trade tensions, and economic challenges. To succeed in this dynamic landscape, innovative strategies based on digitization, diversification of routes, enhanced international cooperation, and building high resilience in supply chains are required."
Dr. Khaled Hanafy stressed that "the Arab region has great opportunities to be a global logistics center thanks to its strategic location and investments in modern infrastructure," pointing out that "the war in Ukraine continues to disrupt the main logistical corridors, as grain shipments across the Black Sea decreased by 35 percent in 2023 compared to 2022, according to the Food and Agriculture Organization. Attacks on shipping ships in the Red Sea have increased shipping time between Asia and Europe by 10-15 days due to the circumvention around the Cape of Good Hope, in addition to rising shipping costs by 250 percent. This is in addition to threats to 12 percent of global trade that passes through the Suez Canal, according to IMF data.
"The Middle East region is witnessing a state of security and political instability, with the continuation of wars and conflicts in several countries. Thus, these wars lead to the disruption of air and sea navigation lines, and the high costs of insurance on shipments, which negatively affects the efficiency of supply chains."
In light of the US-China confrontation, global supply chains have been disrupted by the imposition of tariffs by the United States on imports from China, and China has also imposed tariffs on US imports, which has disrupted global supply chains, he said. The IMF cut its global growth forecast to 2.8 percent in 2025, up from 3.3 percent previously, due to the effects of the trade war, which led to a restructuring of supply chains as U.S. companies began to move their resources from China to countries such as Vietnam, India and the United Arab Emirates, to reduce dependence on China and avoid high tariffs.
Turning to the topic of climate change and its impact on infrastructure, Dr. Khaled Hanafy revealed that the closure of the Panama Canal due to drought in 2023 led to a 30 percent reduction in the number of ships allowed to cross daily, causing significant delays and disruptions in global supply chains, which prompted the shift towards green logistics as the European Union began implementing the Carbon Control Mechanism at the Borders (CBAM). In October 2023, the tariffs will actually apply to some sectors (iron, steel, aluminum, fertilizers, electricity and hydrogen) gradually until 2034. The sustainable aviation fuel market (SAF) is witnessing very strong growth, with the globally projected CAGR for 2024-2034 estimated at around 42 percent."
The Secretary-General called for "re-engineering logistics networks through decentralized strategic storage and smart multimodal corridors. Digital transformation in logistics through artificial intelligence and blockchain is also imperative. Sustainable and smart aviation must be revolutionized through electric and hydrogen aircraft and smart airports."
Dr. Khaled Hanafy suggested that in order to shift from reaction to initiative, bold investments in emerging and smart technologies should be fostered, as well as unprecedented strategic cooperation between the public and private sectors. A proactive vision is also required that redefines the concepts of speed, efficiency and flexibility, as well as contingency planning by preparing alternative plans to deal with potential crises. "The global logistics map is being redrawn, and those who do not adapt today will lose tomorrow. With collaboration and innovation, we can be at the heart of the new global logistics order.
"Every day we see how technology and partnerships can turn challenges into opportunities, especially in the areas of food security and health technologies, where demographic changes and successive climate crises require innovative solutions. He pointed out that "Arab-German cooperation is a pioneering model in promoting innovation and economic development, as the volume of bilateral trade between our two regions reached 57.6 billion euros in 2024, which reflects the strength and strength of this partnership."
"Germany has advanced expertise in engineering, health, digital technology, and innovation, while Arab countries have natural resources and ambitious youth who can exploit these opportunities to achieve sustainable development. Therefore, it is imperative to strengthen cooperation in food and health technologies, especially through the exchange of knowledge and technology, which will help address the challenges of food security, improve the quality of health care, and develop related industries."
According to the Food and Agriculture Organization (FAO), the Arab world imports more than 50 percent of its food needs, at a cost of more than$110 billion annually. Climate change is also affecting 20 percent of the region's agricultural land, increasing the need for innovative solutions such as smart agriculture and water sustainability.
"The healthcare market in the Middle East and North Africa is estimated at $185 billion by 2027, with annual growth of 5.4 percent. Thus, as a leader in medical technology, Germany exports equipment worth€4.7 billion annually to the Arab region, showing enormous potential for deepening cooperation as German direct investments in Arab countries amount to more than €12 billion, with an increasing focus on the biotechnology and renewable energy sectors."
Dr. Khaled Hanafy concluded by saying that "joint work and continuous coordination between the various parties is the way to achieve sustainable and innovative growth that benefits our peoples and economies."
In addition, the Secretary-General of the Union of Arab Chambers, Dr. Khaled Hanafy, met in Berlin - Germany, Mr. Gunther Beger, Director General of UNIDO, and discussed the ongoing preparations for the General Conference of "UNIDO" in the Kingdom of Saudi Arabia during the period 23-27 November under the title "World Industry Summit", the importance of the participation of the private sector in this summit, and the role of the Union of Arab Chambers and the UNIDO Office in Bahrain in supporting youth and women.
Dr. Khaled Hanafy invited Mr. Gunther to come to Lebanon in July and visit the headquarters of the Union of Arab Chambers and the Arab Center for Agricultural Entrepreneurs. The importance of continuing coordination and cooperation between the Union of Arab Chambers and UNIDO was stressed through the establishment of more joint activities and initiatives in the next phase.
On the sidelines of the Arab-German Forum, a cooperation agreement was signed between the Arab-Italian Chamber, represented by its President Pietro Rambino, and the Jordan Chamber of Commerce, represented by its President Al-Ain Khalil Haj Tawfiq. Under the cooperation agreement, a representative office will be opened in the Jordanian capital Amman to support Italian companies that intend to open new offices in Jordan. At the same time, Jordanian companies will be able to use the Italian office already operating in Rome and Milan to support Jordanian companies that want to open up to the Italian market.
On the sidelines of the signing of the agreement, they discussed educational opportunities and opportunities available to young Jordanians so that they can benefit from training courses funded by the European Union and provided by specialized Italian companies.
Source (Union of Arab Chambers)
