How AI will Dominate Supply Chain in the Middle East

Last Updated: 

April 12, 2024

The Middle East region is increasingly adopting the latest technologies like AI, Machine Learning, IoT, etc. The AI in Middle East supply chain and Machine learning (ML) in the supply chain are helping to optimise inventory, warehouse management, and transportation. Read this blog to know AI will dominate the supply chain market in the Middle East.

Dubai Blink is the first B2B Smart Commerce platform launched by the Dubai Airport Freezone Authorities. It uses modern AI for logistics Middle East, virtual business licences, and blockchain technology. This will create a new revolution in the functioning of the new trade platform. This technology has ushered in the era of Smart Commerce for Dubai.

This Smart Commerce platform streamlines innovation using AI-powered supply chain management and the IoT. The use of these technologies will place Dubai in a unique position at the global level. Supply chain management software solutions will support global companies, SMEs, and large-scale companies in setting up their businesses in the Dubai Freezone.

This supply chain optimisation Middle East will help Dubai Blink empower the licences of the supply chain companies. Modern technologies and process innovations will empower virtual company formation. It will support the UAE’s vision of creating a digital economy. According to the Chairman of Dubai’s Civil Aviation Authority, ‘It is Dubai’s most innovative model for empowering the global supply chain business and driving the economy towards growth and prosperity.’

AI technology will support predictive analytics for the supply chain and render tailored results for companies. With Dubai Blink, global companies will receive virtual business licences, popularly known as Cloud Trading Licences. It will enable companies to explore more business opportunities and trade in the Freezone.

Key Takeaways on AI’s Impact on the Supply Chain in the Middle East

  1. AI Revolutionising Middle East Supply Chain: Technologies like AI and ML are optimising inventory management and transportation, enhancing efficiency.
  2. Dubai Blink: A Smart Commerce Breakthrough: Dubai's innovative Smart Commerce platform integrates AI for logistics, virtual licences, and blockchain, driving a new era of trade.
  3. Strategic Investment in AI: Middle East companies are investing heavily in AI, with 93% of C-Suite leaders planning to increase AI investments in 2024.
  4. Demand Forecasting with AI: AI-powered demand forecasting is on the rise, driving efficiency and strategic planning in the Middle East supply chain.
  5. Route Optimisation for Efficient Delivery: AI-driven route optimisation improves delivery efficiency by avoiding traffic and weather-related delays.
  6. Predictive Analysis Enhancing Supply Chain Resilience: Predictive analytics mitigates risks and strengthens supply chain operations by alerting authorities to potential issues.
  7. Cost Reduction and Increased Productivity: AI implementation leads to significant productivity gains and operational cost reductions, fostering modernisation in the supply chain industry.
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Analytical Approach for using AI in Middle East Supply Chain

The supply chain resilience of the Middle East has taken a sharp turn with the rapid use of technologies like AI and Generative AI. The McKinsey research states that Middle East countries will invest more than $150 billion in these technologies. Further, 62% of companies have stated that they are using AI, which is currently at par with America.

93% of the C-Suite leaders will increase their investments in artificial intelligence in 2024 in the Middle East. Overall, technology investments will increase to 85% this year. Companies will use technology consulting services to usher the digital transformation in Middle Eastern countries. It will also lead to Middle East logistics transformation as more than 11% of companies have stated that their staff has received training on Generative AI use.

With AI technology, the demand forecasting in the Middle East shows an upward trend. 40% of high performers in the supply chain industry use demand forecasting, and 31% of companies use supply planning. Integrating modern technologies like AI, ML, and IoT drives efficiency and advancements.  

Top Five Process Using Suppl Chain Data

Dubai in UAE is one of the strategic locations for Fortune 500 companies in the Middle East to set up and perform their operations. It has given way to inventory management AI, and 2.4 billion customers from the Middle East have set up their market in Freezone Dubai. Many organisations are taking the services of a reputed supply chain software development company to create AI-enabled software to manage their large-scale supply chain gateway and drive productivity.

What is the Role of AI in Middle East Supply Chain Operations?

The right software product engineering solutions will help companies integrate modern technological platforms like AI and Generative AI. Artificial intelligence will catalyse the future of the MENA region. Let us see how AI will change supply chain operations.

  1. Innovation in Transportation: The route optimisation AI concept will be integrated into the Middle East supply chain industry. It will accelerate how products are delivered from warehouses to the end users. The route optimisation will help the fleet take the routes that help them reach the customer’s doorstep without getting stuck in traffic or late due to bad weather.
  2. Using Predictive Analysis to Mitigate Risks: If the company is facing risk during transportation or the products have been missed due to negligence of the staff, the predictive analysis can help alert the authorities. With timely prediction, the supply chain will be strengthened as AI studies the pattern of late delivery and works to increase the industry’s efficiency.
  3. Strategic Port Operations: Various software product engineering services providers are helping to make the Middle East port operations smart. Companies like FedEx are using SenseAware technology to implement innovation and ship high-value products with utmost safety. The real-time updates will help companies avoid untoward outcomes when shipping these high-value products.
  4. Reduction in Operational Cost: AI has helped to push the new age of transition and modernisation. With its use by companies, productivity has significantly increased, and operational costs have decreased. Companies are using software development services in Dubai to develop software that will help streamline the trading data and connect them with the global supply chain industry.

Get Connected with the Right Supply Chain Operations Developer!

The supply chain industry is drastically improving with the help of innovations and the use of modern technologies like AI. The use of Generative AI alongside ML and IoT will help to redefine the global supply chain system. Organisations can contact Tntra Technology Solutions for software development and implementation services. Tntra’s dedicated developers have pioneered the applicability of automated solutions to make your supply chain operations efficient.

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