Logistics Performance Index (LPI) and insights on the Logistics Performance Improvement In the Arabian Region

The World Bank firstly issued the Logistic Performance Index (LPI) in 2007, which analyzes six different aspects that influence the logistics Performance of different countries. These six indicators are based on two main important Categories. They are: Policy Regulation Areas, indicating key inputs to the supply chain, containing three Indicators: Customs Performance (the efficiency of custom clearance), National Infrastructure Quality and Internal Logistics Service Quality Delivery Performance Results, being the other three indicators: Punctuality of operations, Competitiveness of Prices for International Shipments, and Ease of Tracking and Tracing. At the macro level logistics performance could have a major impact in the country economic performance. In the Logistics performance index 2018,the UAE ranked first in the Arab world and 11th globally, followed by Oman, Saudi Arabia, Bahrain and Kuwait in the 2018 LPI report . while Egypt ranked seventh in the Arab standings, followed by Lebanon, Jordan and Djibouti, with 67, 79, 84 and 90 respectively. Tunisia, the Comoros, Morocco, Algeria, Sudan and Mauritania followed in the rank, while Syria, Yemen, Somalia, Iraq and Libya were placed in last regionally. In 1996 most of the Arabian countries signed a regional trade agreement GAFTA ( Greater Arab Free Trade Area ) to eliminate trade barriers between the Arab countries however the bilateral trade volume between the Arabian countries have been far behind the saturation level , At the macro level its generally accepted that the countries logistics performance has a major impact on the economic performance of the country economic, Few researchers have addressed the effect of the Arabian countries logistics performance in their economic development . The aim of this paper is to analyze the Arabian countries logistics performance to suggest solution that might asses‟ policy makers in developing the logistics performance of their countries , Also the paper examine the relationship between Arab countries economic performances and how it affect by theirlogistics performance .