The National Association of Freight and Logistics UAE (NAFL) has signed a landmark MoU with Fives Smart Automation Solutions (Fives SAS) to propel growth and automation across the UAE’s e-commerce and logistics sectors.

In a statement, the group noted that the agreement is meant to look into "sector-wide" opportunities to improve and automate the logistics industry and support the UAE’s burgeoning e-commerce growth.

"This MOU will foster mutual cooperation in various areas to support the logistics industry, capture opportunities, and work closer with government entities to further automate the logistics and e-commerce industry," said Nadia Abdul Aziz, president of NAFL and International Chamber of Commerce (ICC) Chair of the Customs and Trade Facilitation Commission UAE.

"By harnessing the global expertise of NAFL and Fives SAS, we look forward to productive progress and hastening widespread adoption of technologically advanced methods which will ensure the UAE’s competitive advantage in our focus sectors," he added.

Worth more than AED220 billion (US$59.9 billion), the UAE logistics market contributes more than 13% of the country’s GDP.

Global logistics hub

NFL noted that the development of the logistics ecosystem through digital and infrastructure investment is a key focus in current initiatives designed to sustain the nation’s economic growth, with conducive government policies paving the way for the UAE to be a truly global logistic hub.

"After successfully executing several smart projects in the region, Fives Smart Automation Solutions appreciates how local customers understand the importance and benefits of smart automation, a trend which has been fast-tracked due to the Covid-19 pandemic," said Massimiliano Fochetti, Global EVP Sales and Marketing for Fives SAS.

"Aligned with our ambitious growth target, we are ready to cater to our local customers’ needs as a strategic partner for NAFL in the UAE."

Fives is an industrial engineering group that designs and manufactures machines, process equipment, and production lines for some of the world’s largest manufacturers.

The deal will also look to enhance and facilitate the work of NAFL members and support digitalization processes.

"In addition to illustrating the UAE’s strength as a global logistics and humanitarian hub, the pandemic has re-emphasized the importance of capitalizing on e-commerce growth, including significant opportunities for last-mile delivery services which are in great demand," Aziz added.

"The UAE is an ideal logistic hub for both sectors due to its excellent connectivity by air, sea, and land, as well as rail, which a priority for the country’s leaders.”

NFL noted that the MoU also outlines further collaboration designed to utilize Fives' experience in automated sorting and intralogistics robotic solutions to improve NAFL members' efficiencies, assist global market knowledge and robotic expertise, and aid Emiratisation and local recruitment initiatives.

The MoU was signed by Aziz,  Fochetti, and Umer Saleem, business development and sales - MENA, Southeast Asia, and Turkey for Five SAS.