UAE named one of world's most connected nations amid coronavirus crisis
The UAE has emerged as one of the top five most globally connected countries in the world, according to the DHL Global Connectedness Index 2020.
The report, compiled in collaboration with DHL and the NYU Stern School of Business, tracked international flows of trade, capital, information and people across 169 countries during the coronavirus pandemic.
It found that the UAE, along with the Netherlands, Singapore, Belgium and Ireland, led the global rankings.
“The UAE has remained resilient to the global pandemic, prompted by the government’s vigilant efforts to contain the spread very early on and minimise the country’s health, safety and economic impact,” said Nour Suliman, CEO of DHL Express MENA.
He added: "The UAE’s robust logistics capabilities and transport infrastructure enabled the country to sustain open supply chains and trade links, which ensured that local access to Covid-19 tests and the availability of Personal Protective Equipment (PPE) for nationals and residents was one of the highest in the world."
After holding steady in 2019, current forecasts suggest that the index will fall significantly in 2020 due to the distancing effects of Covid-19 on societies, such as closed borders, travel bans and grounded passenger airlines.
"Nonetheless the pandemic is unlikely to send the world’s overall level of connectedness below where it stood during the 2008 – 09 global financial crisis," the report said.
It added that trade and capital flows have already started to recover and international data flows surged during the spreading pandemic as in-person contact went into the online world, boosting international internet traffic, phone calls and e-commerce.
“The current crisis has shown how indispensable international connections are for maintaining the global economy, securing people's livelihoods and helping companies strengthen their trading levels” says John Pearson, CEO of DHL Express.
“Connected supply chains and logistics networks play an essential role in keeping the world running and stabilizing globalization especially at a time of a crisis that spans our globe. This reminds us of the need to stay prepared for any challenge. The recent vaccine breakthrough has put a spotlight on the systemic importance of fast and secure medical logistics dependent on a worldwide interconnected network that effectively ensures international distribution.”
The report said that while Covid-19 has disrupted business and life around the world, it has not severed the fundamental links that connect nations.
“This report shows that globalisation did not collapse in 2020, but that the pandemic did transform – at least temporarily – how countries connect. It also demonstrates both the dangers of a world where critical linkages break down and the urgent need for more effective cooperation in the face of global challenges,” said lead author Steven A Altman, senior research scholar and director of the DHL Initiative on Globalisation at the NYU Stern School of Business.
Predictably, lockdowns and travel bans to curb the spread of the virus have led to an unprecedented collapse of people flows in 2020.
The number of people travelling to foreign countries is on track to fall 70 percent in 2020, according to the latest UN forecast. International tourism may not return to its pre-pandemic level until 2023.
In contrast, trade, capital, and information flows have held up surprisingly well, the report said, adding that international trade has rebounded strongly after a sharp plunge at the onset of the pandemic and remains a vital backbone for economies worldwide.
Capital flows were hit harder. Foreign direct investment (FDI) flows, which reflect companies buying, building or reinvesting in operations abroad, could fall 30-40 percent this year, according to the UN. However, digital information flows have surged as the pandemic has sent work, play and education online.
The report said Europe topped the ranking with the most globally connected countries, while southeast Asian nations punched above their weight.
The most recent data showed that The Netherlands is again at the top of the ranking as the world’s most globally connected country. Singapore, Belgium, the UAE and Ireland completed the top five.
Singapore led the index on international flows relative to domestic activity while no country boasted a more global distribution of flows than the United Kingdom and North America was the top region for information and capital flows.