Global supply chains must be rebuilt following the Covid-19 pandemic with more resilience, sustainability and digitalisation while removing the constraints of protectionism, government officials and corporate bosses said.
The pandemic, trade tensions, the Russia-Ukraine war and some countries' industrial policies are among the factors leading to a “re-jig” of global supply chains, Saudi Investment Minister Khalid Al Falih said on Thursday during a panel discussion in Davos.
“All of these are converging together and putting this puzzle in front of us: How do we build resilience in our supply chains but without losing the benefits of globalisation?,” he said.
“If we're going to re-engineer globalisation to 'Globalisation 2.0', then what are the design parameters to retain the wins and add to it the resilience, sustainability and agility that we need.”
The head of one of the world’s largest enablers of global trade highlighted the impact of US-China tensions on global markets, calling for more “open trade” and less government intervention in business.
“As businessmen we can cope with anything and we can find a solution, the only thing that we cannot cope with, which I'm concerned about, is the emergence of another cold war between China and the US,” Sultan Bin Sulayem, DP World's chairman and chief executive, said on the panel.
“That disrupts the market in a big way … today we need to see supply chain resilience continue, we need to see the ability to supply cargo.”
He acknowledged the advantages of “near-shoring” or producing goods and services closer to companies' home bases, including faster delivery times and lower costs, but warned of the downside of protectionist policies.
An increasing number of companies are bringing their supply chains and manufacturing bases closer to home to reduce risks, avoid disruption, cut transport costs and benefit from government incentives, DP World said in a report released on Tuesday.
A total of 96 per cent of company executives surveyed are reconfiguring supply chains because of geopolitical events such as the Russia-Ukraine war and US-China tensions, said the Trade in Transition study commissioned by DP World and led by Economist Impact.
The number of companies shifting their manufacturing and suppliers last year — either to their home markets or nearby — doubled from 2021, said the survey, which was released at the World Economic Forum annual meeting.
Some 10 per cent of respondents cited the fragmentation of the world into trade blocs as limiting the growth of international trade.
Beyond the war in Ukraine, US-China tensions and cyber warfare are preventing the efficient functioning of economies worldwide, the survey said.
This is leading to increasingly protectionist policies by some countries and further fragmentation of the global trade system.
Businesses are finding ways to grow in this climate. Altering supply chains either through diversification or bringing manufacturing bases closer to home is one response.
The widespread and increasing adoption of technology is another way to build resilience into the supply chain, the survey found.
DP World invested heavily in digitalisation to boost its customer reach during the pandemic, as the global crisis exposed the fragility of supply chains, Mr Bin Sulayem said at the panel.
In the reconfiguration of global supply chains, they will move from a “hub-and-spoke” system to a multi-hub global system where each country “plays to its strengths in an interdependent way”, Mr Al Falih said.
In October, Saudi Arabia rolled out a new initiative that aims to attract global industrial companies to the kingdom and seeks to shore up 40 billion Saudi riyals ($10.6 billion) worth of investments in the first two years of the launch.
Under the Global Supply Chain Resilience Initiative (GSCRI), launched by the kingdom's Crown Prince Mohammed bin Salman, Saudi Arabia will earmark 10 billion riyals in financial and non-financial incentives for investors.
Rebuilding supply chains can be viewed through the “triangle of cost, resilience and sustainability … with innovation at the heart of it”, along with “complementarity between government and private sector across borders”, Mr Al Falih said.
“Let's watch out for protectionism,” Mr Al Falih said when asked about ways to remove roadblocks from supply chains. “Protectionism is not the solution … we should not reverse history.”
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UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
Global Fungi Facts
• Scientists estimate there could be as many as 3 million fungal species globally
• Only about 160,000 have been officially described leaving around 90% undiscovered
• Fungi account for roughly 90% of Earth's unknown biodiversity
• Forest fungi help tackle climate change, absorbing up to 36% of global fossil fuel emissions annually and storing around 5 billion tonnes of carbon in the planet's topsoil
Global state-owned investor ranking by size
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United States
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China
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UAE
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Japan
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
The Orwell Prize for Political Writing
Twelve books were longlisted for The Orwell Prize for Political Writing. The non-fiction works cover various themes from education, gender bias, and the environment to surveillance and political power. Some of the books that made it to the non-fiction longlist include:
- Appeasing Hitler: Chamberlain, Churchill and the Road to War by Tim Bouverie
- Some Kids I Taught and What They Taught Me by Kate Clanchy
- Invisible Women: Exposing Data Bias in a World Designed for Men by Caroline Criado Perez
- Follow Me, Akhi: The Online World of British Muslims by Hussein Kesvani
- Guest House for Young Widows: Among the Women of ISIS by Azadeh Moaveni
Without Remorse
Directed by: Stefano Sollima
Starring: Michael B Jordan
4/5
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
ESSENTIALS
The flights
Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.
The hotels
Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.
The tours
A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages.
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
The bio
Favourite book: Peter Rabbit. I used to read it to my three children and still read it myself. If I am feeling down it brings back good memories.
Best thing about your job: Getting to help people. My mum always told me never to pass up an opportunity to do a good deed.
Best part of life in the UAE: The weather. The constant sunshine is amazing and there is always something to do, you have so many options when it comes to how to spend your day.
Favourite holiday destination: Malaysia. I went there for my honeymoon and ended up volunteering to teach local children for a few hours each day. It is such a special place and I plan to retire there one day.
UAE currency: the story behind the money in your pockets
Dr Amal Khalid Alias revealed a recent case of a woman with daughters, who specifically wanted a boy.
A semen analysis of the father showed abnormal sperm so the couple required IVF.
Out of 21 eggs collected, six were unused leaving 15 suitable for IVF.
A specific procedure was used, called intracytoplasmic sperm injection where a single sperm cell is inserted into the egg.
On day three of the process, 14 embryos were biopsied for gender selection.
The next day, a pre-implantation genetic report revealed four normal male embryos, three female and seven abnormal samples.
Day five of the treatment saw two male embryos transferred to the patient.
The woman recorded a positive pregnancy test two weeks later.
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
