Overcoming Three and a Half Barriers to Robotizing Warehouses
in the UAE and Saudi Arabia

  • logistics
  • for warehouses
december 26, 2024

Julia Bespala
Head of Marketing, Yango Robotics

Imagine the hum of machinery and the soft whirr of robotic motors. Robotic arms at packing stations, rows of towering shelves moving with precision along polished floors, while drones buzz overhead, scanning barcodes and updating inventory. This vision of a robotized warehouse is both exciting and somewhat unsettling — after all, we’ve all seen sci-fi movies where robots take over the world. Now, it’s happening in real life. Should we be scared?
Ever since Amazon implemented robotics in its warehouses, the entire industry has had to meet new standards, including the previously unimaginable same-day delivery. What used to be a fantasy has become a reality in only a few years. Today, more than 200,000 robotic units operate on various levels across Amazon’s global network, reducing fulfillment time by up to 50%.
At the same time, concerns and fears of job displacement among workers and the general public have grown louder — and not without reason.
Globally, automation has displaced around 1.7 million manufacturing jobs since 2000, and according to the Oxford Economics report, up to 20 million manufacturing jobs are set to be lost to robots by 2030. The latest advancements in AI, including AI-powered machine learning, which is revolutionizing robotics right now, have only accelerated this trend.
Let’s explore the barriers you might face when implementing robots in your warehouse, how to overcome them, and whether the “rise of robots” is truly an apocalyptic event.

Human vs. Robot

If, when imagining a robot, you see a Terminator-like creature smarter and stronger than you, you’re not too far from the truth. It may not look like Arnold Schwarzenegger (yet!), but it will outperform any human in terms of strength, endurance, and consistency.
In other words, if you put a human against a robot to perform heavy lifting and management tasks in warehouses, the robot will win every time.
Unfortunately, it took some time for this fact to sink in. Human workers tried to keep up with the accelerated pace set by automated systems, which sometimes led to increased stress and injury rates among employees.
However, this doesn’t mean that human-robot interaction has to be like this, nor does it mean that a human will lose to a robot in other tasks.
As companies and people adapt to the new, robotized reality, more solutions are emerging that allow businesses to create new job opportunities based on human strengths that no robot can compete with. Here are some of the strengths we, humans, have and robots don’t:

  • Adaptability
  • Problem-solving
  • Leadership and supervision
  • Communication

Major players using robotics, such as Amazon, DHL, DB Schenker, and Procter & Gamble, recognize these strengths of their employees and have developed strategies to adapt their business. For example, Amazon has implemented significant training programs to help employees transition into new roles that work alongside robotics. The Amazon Technical Academy and the Machine Learning University are part of a $700 million investment to retrain a third of its U.S. workforce (about 100,000 workers) by 2025.
Apart from reskilling programs, companies focus on human-robot collaboration rather than complete automation of all workflows.
This approach helps address employees' fear of robotics implementation, avoid related risks, and optimize business models for better effectiveness. Despite the alarming stats of automation displacing millions of jobs, a World Economic Forum study offers a more positive estimation, stating that about 133 million jobs will be produced worldwide thanks to advances in technology.
Having a robot do the heavy lifting or complex calculations doesn’t sound so scary anymore, does it?

3 Challenges of Implementing Warehouse Robotics

However, there are other challenges that slow down the spread of robotics in warehouses. The biggest include high initial investment costs, technical integration difficulties, and the need for a skilled workforce.

Let’s explore these challenges in detail and discuss potential solutions for businesses in the UAE and Saudi Arabia.

1. High initial investment

One of the most significant challenges is the high initial investment required for purchasing and installing robotic systems. These costs extend beyond the purchase price of the robots to include facilities, software, and integration with the current warehouse management system. Additionally, staff must be trained to use and collaborate with robots.

Investment return

The average cost of a warehouse robot in today’s market is around $50,000 to $100,000 per piece. This can translate into millions of dollars for full-scale implementation. However, from a business perspective, the more important question is not “How much is it going to cost me?” but “How soon will my investment return?”

The answer varies based on the robotics company you work with. At Yango Robotics, we estimate the full investment payback for our clients in only 2-3 years, thanks to a productivity increase of 20-30% and a 15-20% reduction in labor costs.

Strategic initiatives, like “Vision 2021” and “Vision 2030”

The financial environment in the UAE and Saudi Arabia provides unique opportunities for offsetting such high initial investments. Governments are eager to fuel technological innovation and diversify their economies.

For instance, the UAE government has set programs into motion for “Vision 2021” to incubate technology through grants and tax incentives for companies investing in robotics and automation. Similarly, Saudi Arabia’s “Vision 2030” plan aims to boost the private sector’s contribution to the economy, offering various subsidies and financial support for tech adoption.

Cost Management

Companies don’t have to invest the full amount at once and can instead use a phased approach. This means starting with a pilot project to test the waters and gradually expanding the use of robotics in warehouses. This strategy spreads out the investment over time, reducing the immediate financial impact and allowing for adjustments to maximize effectiveness.

2. Technical Integration

Most warehouses contain legacy systems that are not instantly compatible with modern robotics. This incompatibility can lead to operational disruptions and require substantial modifications to existing infrastructure. Integrating robotics also involves aligning software, hardware, and operational processes, which can be complex and time-consuming.

Hardware-agnostic systems

These systems are designed to be flexible and work with any warehouse management systems you already have. For example, all of our warehouse robots — Spectro, Motus, and Dilectus — will integrate into your current setup without causing any fundamental changes. This significantly reduces the chances of operational disruptions.

Continuous technical support

Dedicated technical support is essential during the transition process. Numerous tasks require expert assistance, which is why we always help our clients fix any issues that may arise during the integration phase with real-time assistance and troubleshooting.

3. Skilled workforce

Another significant challenge with implementing new robotic systems is the workforce requirements for handling and maintaining them. Robotic systems require specialized knowledge in programming, operation, and maintenance. Companies need professionals who understand robotics, automation, and AI to ensure smooth implementation and ongoing operation.

Globally, including in the UAE and Saudi Arabia, there is currently a lack of such technical expertise. Workers need to be trained to use advanced technologies, which requires both time and resources.

Training solutions

There are many ways to train your employees, both within your company and by partnering with other organizations. Here are some ideas:

  • Develop custom in-house training programs to reskill and upskill your workforce.
  • Partner with universities and training providers, such as the Robotics and Automation Society, Khalifa University, United Arab Emirates University, King Abdullah University of Science and Technology, and Prince Sultan University.
  • Provide employees with online courses from platforms like Coursera, edX, and Udacity.


What’s the “half-barrier”?

As you can see, while there are significant challenges to implementing robotics in warehouses in the UAE and Saudi Arabia, they can be overcome with the right strategies. High initial costs can be managed with phased rollouts and government incentives, and technical integration is getting easier with flexible solutions. As for the lack of a skilled workforce, you can upskill employees through partnerships and in-house training programs.

But there’s also the fear of new technology to consider. This fear can be a significant barrier to adoption, but we see it as a “half-barrier”. Why? Unlike other challenges, it can’t be overcome with huge investments or the right tech alone. It requires clear communication about how robots will benefit everyone and not just replace their jobs. Show the team that robots are there to make their work safer and easier. Give them some time to get used to the new workflow, and involve them in the transition process.

So, Is the Current Rise of Robots an Apocalypse?

If you ask us — far from it. Walking into a modern, robotized warehouse might feel like a scene from a sci-fi movie, but it’s not the end of the world. It’s a glimpse into a future where humans and technology work hand in hand to achieve greater efficiency and productivity.

This future is already here, and it offers unique opportunities for innovating warehouses, enhancing workflows, improving safety, increasing cost-effectiveness, and creating new jobs. It benefits both businesses and employees.

So, the rise of robots is not an apocalypse.

It’s transformation.

At least, that’s what we see in it. What do you think?

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Wed Mar 12 2025 11:13:29 GMT+0300 (Moscow Standard Time)