Emerging markets are still the shining light for companies looking to invest overseas, despite widespread economic uncertainty, the Eurozone financial crisis and Middle East political turmoil, according to the latest 2012 Agility Emerging Markets Logistics Index.

The index has revealed that top emerging markets are weathering the global economic slowdown better than developed economies and that vibrant domestic consumer markets and trade between emerging markets has made them more resilient to downturns in the developed markets that have traditionally determined their fate.

The countries that dominated the rankings continued to be those that combine size and robust growth. China ranked first; India second; Brazil third. Saudi Arabia and United Arab Emirates (UAE) came in Nos. 4 and 5, and Indonesia and Russia at Nos. 6 and 7, respectively.

Malaysia moved up three places from last year’s rankings to No. 8. Chile was No. 9, and Mexico was No. 10, falling two places.

Overall 2012 Rankings (Previous Year)

1. China (1)
2. India (2)
3. Brazil (3)
4. Saudi Arabia (4)
5. UAE (6)
6. Indonesia (5)
7. Russia (7)
8. Malaysia (11)
9. Chile (9)
10. Mexico (8) 

China and India increased their Index scores, an indication that they took steps to enhance their attractiveness as markets. China distanced itself from other emerging markets, including India (2), which remained hampered by below-average scores in market compatibility and connectedness.

Though Brazil’s infrastructure score remains weak, investment is set to intensify in the run up to both the 2014 World Cup and 2016 Olympic Games.

“Emerging markets are more resilient and independent than they’ve ever been,” said Essa Al-Saleh, Agility’s president and chief executive officer, Global Integrated Logistics.

“There’s growing evidence that their dependence on the established markets is diminishing as new trade lanes grow and consumer demand in huge markets like China and India gathers strength. In the Middle East, where we saw old regimes fall, the Index indicates that logistics professionals see the region as ‘open for business’ in a way that it wasn’t before.”  

John Manners-Bell, chief executive of Transport Intelligence, which compiled the report, said emerging markets have “never been so important to the global economy”.  

“However, operating in these markets requires a great deal of attention and preparation as the business environment is often highly challenging. The Index highlights many of these challenges and points towards the markets that will deliver the greatest opportunities,” he added.

While the BRIC economies have attracted large amounts of foreign investment since the 1990s, other rising stars – including Indonesia (6), Vietnam (27) and Turkey (11) – present increased opportunities for logistics companies as the “near-sourcing” trend of optimising the distance between supplies, production and markets intensifies.