UAE businesses report 160% rise in logistics costs from supply disruptions

UAE businesses are reporting significant increases in logistics costs due to supply chain disruptions, with one multinational recording a 160 per cent year-on-year rise in freight expenses. The increase was disclosed at the NAFA Summit Dubai on 11 November 2026, where finance leaders from food, pharmaceutical and logistics sectors discussed the operational impact of geopolitical disruptions on cross-border supply chains.

Freight costs triple for consumer goods manufacturer#

Umberto Giovanni Maccari, CFO Middle East and Africa at The Kraft Heinz Company, stated that the cost of transporting products from manufacturing facilities in Egypt, Russia and Europe to Middle East markets had increased 160 per cent year on year. The company operates centralised manufacturing facilities and does not produce in every market it serves, making freight a material cost component. The increase affects the delivered cost of consumer goods including bottled ketchup and other food products shipped to the region.

Pharmaceutical sector prioritises supply continuity over cost#

Rachid El Amrani, Director of Finance and Operations (UAE) at Novo Nordisk Gulf, stated that product availability and supply continuity remained the primary operational concern for pharmaceutical distribution in the region. El Amrani said ensuring medicines reach markets on time was central to the company's responsibilities, particularly when supply chains face unexpected disruptions. The focus for pharmaceutical operators is maintaining patient access to medicines rather than managing freight cost increases alone.

Customers shift to shorter contract periods as uncertainty rises#

Mohamed Galal, Senior Finance Director at Vopak, reported a shift in customer behaviour, with businesses moving from two to three year contracts to shorter renewal cycles. Galal said the change in contracting patterns creates pressure for companies that require long-term commitments to justify infrastructure investment. The shift reflects increased reluctance among customers to commit to longer contractual periods amid geopolitical uncertainty. Finance leaders at the summit said the changing environment is influencing decisions on cash flow, credit exposure and capital expenditure, with some companies postponing investments.