Building Resilient, Software-Driven Supply Chains in the Middle East

As Middle East supply chains pivot toward resilience, localisation, and food security, automation is becoming a strategic necessity rather than a capacity add-on. In this interview, Rami Younes, General Manager of Swisslog Middle East, outlines how high-density storage, modular robotics, and software-led orchestration are enabling operators to scale without overbuilding, manage economic uncertainty through phased automation, and prepare for AI-driven optimisation. The discussion also explores priority sectors for 2026, regional expansion plans, and how sustainability metrics and decision intelligence are redefining warehouse performance across the GCC.

What opportunities do you foresee for 2026, and how do you plan to leverage them?
By 2026, the biggest opportunity lies in how the region is reshaping supply chains around resilience, localisation, and food security. Governments are encouraging local production through incentives, while sectors such as F&B and grocery continue to grow as consumers prioritise freshness and availability. This creates strong demand for automation that delivers consistent throughput and labour independence.

High-density storage, modular systems, and software-led orchestration allow operators to scale without overbuilding capacity. With the Middle East logistics market continuing to expand and robotics projected to exceed $714 million by 2030, companies that invest early in adaptable automation will be better positioned to manage volatility, protect margins, and meet rising service expectations.

What major challenges did you encounter this year, and how did you address them?
The main challenge has been economic uncertainty, which slowed decision-making and extended approval cycles for capital investments. Rather than pushing large, one-time projects, we focused on supporting customers through phased automation and retrofit strategies.

This allowed operators to improve throughput, accuracy, and space utilisation without taking on unnecessary risk. A strong installed base across the region helped balance order intake, as many customers chose to expand or optimise existing systems instead of starting from scratch. This approach aligned well with current market conditions and reinforced long-term partnerships built on operational continuity rather than short-term volume.

Can you elaborate on your strategic partnerships this year and plans for next year?
Being part of the KUKA Group gives us access to a global automation ecosystem spanning robotics, software, and advanced engineering. That depth is critical as projects become more complex and software-driven. At the regional level, we work closely with local partners to support specialised subprojects, integration, and on-the-ground execution.

This hybrid model combines global technology standards with local delivery expertise, which is essential in markets with diverse regulatory and operational requirements. In 2026, partnerships will increasingly focus on software integration, AI-enabled optimisation, and scalable deployment models that shorten time to value.

What will be your primary focus areas and strategic priorities for 2026?
Food and beverage, grocery, general merchandise, and fashion remain priority sectors due to dense SKU profiles, tight fulfilment windows, and labour pressure. These industries benefit most from automation that delivers accuracy above 99% and maximises space utilisation, often up to 85% of available floor area.

At the same time, we see growing demand from 3PL, pharma, and industrial production, where pallet automation, shuttle systems, and cube storage address both scale and compliance requirements. The priority for 2026 is to help customers standardise complexity through modular systems that support omnichannel fulfilment without duplicating inventory.

Are there plans to explore new markets or introduce new products or applications in 2026?
Saudi Arabia and the UAE remain core growth markets, supported by large-scale logistics and manufacturing investment. At the same time, we are actively exploring expansion into Oman, where modernisation of supply chains is accelerating.

On the technology side, autonomous mobile robots and AI-driven item picking will play a larger role within integrated intralogistics environments. These technologies add flexibility to dynamic warehouses and support faster deployment compared to fixed infrastructure. The focus is not on standalone products, but on combining robotics, storage, and software into scalable applications that evolve as demand changes.

How is your company approaching sustainability, digital transformation, or AI adoption in preparation for 2026?
AI-driven automation is becoming central to how warehouses operate, moving from reactive execution to proactive optimisation. Decision intelligence now supports demand forecasting, dynamic slotting, and predictive maintenance, improving throughput while reducing downtime. From a sustainability perspective, Swisslog focuses on measurable performance gains through regenerative-energy pallet cranes, low-power robotics, and compact storage designs that reduce building footprints and energy demand.

Many systems operate below 0.1 kW per hour and can integrate with renewable energy sources. Customers increasingly track metrics such as kWh per order, energy per pick, and waste reduction, using automation to meet sustainability targets without increasing operating costs. Digital transformation is less about adding technology and more about orchestration, using software to align automated and manual workflows into a single, measurable performance framework.