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Eye of Dubai
Business & Money | Tuesday 21 November, 2023 1:02 pm |
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FedEx Delivered Over $80 Billion in Direct Impact to the Global Economy in FY 2023: Annual Economic Impact Report

FedEx Corp. (NYSE:FDX) released its annual economic impact report, analyzing the company’s worldwide network and role in fueling innovation during its 2023 fiscal year (FY 2023) Produced in consultation with Dun & Bradstreet (NYSE: DNB), a leading provider of business decisioning data and analytics, the study demonstrates the positive impact FedEx has on individuals and communities around the globe — otherwise known as the ‘FedEx Effect.’ 

 

              “FedEx has helped shape global supply chains and the e-commerce revolution over five decades by transforming the way businesses exchange goods, services, and ideas — all while continuously exceeding the evolving needs of our customers,” said Raj Subramaniam, President and CEO, FedEx Corporation. “This report underscores our significant contributions to the economy and dedication to making a positive difference in the communities where we operate.”

 

              The report reveals that FedEx contributed more than $80 billion in direct impact to the global economy in FY 2023, despite recent economic pressures. This activity reflects the scale of the network FedEx has developed and the company’s ongoing efforts to enhance its innovative services that help businesses of all sizes connect with customers and strengthen their operations.

 

AMEA impact 

FedEx Express serves more than 100 markets across AMEA, including 66 markets in the Middle East, Indian subcontinent, and Africa (MEISA) region. The study found that with its extensive network, FedEx Express contributed 0.3% of net economic output in the Transportation, Storage, and Communications sector in AMEA during FY 2023. Across all sectors of the AMEA economy, FedEx Express contributed 0.02% of total net economic output, which grew approximately 6% in FY 2023 to $44 trillion. 

 

The company’s impact also included $2.7 billion in indirect contributions to the regional economy in FY 2023. Among specific industries in AMEA, FedEx Express indirectly contributed an estimated $1 billion to the critical $9 trillion Manufacturing sector. The company’s indirect contribution to the Transportation, Storage, and Communications sector was estimated as $772 million.

 

FedEx Express selected Dubai as the home of its gateway facility for Middle East operations in 1989 and its regional hub for air operations in 1998 — an ideal location as the UAE has evolved into a modern center for logistics and transportation. Today, this hub serves the MEISA region, which accounts for approximately 45% of the world’s population, through 56 weekly FedEx Express flights. These flights are a crucial part of the FedEx global air network that connects more than 220 countries and territories. 

Kami Viswanathan, President of FedEx Express Middle East, Indian subcontinent, and Africa, said: “The growing prominence of the MEISA region in the global economy is reflected in our vast network. In alignment with our long-term vision, we are bolstering our commercial presence, to provide businesses with faster and more convenient access to international markets. We remain committed to providing innovative solutions to our customers and are actively working to foster a more connected and sustainable future. This approach will enhance the FedEx Effect for our team members, customers, suppliers, and communities.”

Championing community engagement and environmental stewardship

         The FedEx Economic Impact Report shows that in FY 2023, FedEx donated $58.6 million globally to charities and local non-profits in the communities where its team members live and work. In the Middle East and North Africa region, this includes environmental programs, student mentorship and entrepreneurship programs, and community outreach initiatives to help improve lives. In FY 2023, FedEx Express team members recycled approximately 5,600 kgs of paper and carton materials, planted trees at the Special Bee Reserve, and sorted and packed 4,800 boxes containing essential food items in the UAE and Egypt during Ramadan for those in need. Additionally, FedEx mentorship programs reached more than 1,350 students across the UAE and Saudi Arabia.

 

With a vision for a sustainable future, FedEx is committed to achieving carbon-neutral operations globally by 2040. To support this goal in the UAE during FY 2023, FedEx transitioned 19 vehicles from conventional diesel to biodiesel and completed its electric vehicle (EV) trial, reinforcing its ongoing efforts to reduce environmental impact and promote sustainable logistics. Additionally, the company utilizes e-cargo bikes in Morocco and 14 EVs in Jordan for the pickup and delivery of packages.

 

FedEx celebrated 50 years of operations on April 17, 2023. With the most extensive transportation network in the world, the company employs over 500,000 people across more than 5,000 facilities and moves approximately 14.5 million packages per day. 


 

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