UAE Logistics Market Report and Forecast 2024-2032

UAE Logistics Market Outlook

The UAE logistics market size was valued at USD 62.08 billion in 2023. The market is further projected to grow at a CAGR of 5.5% between 2024 and 2032, reaching a value of USD 100.89 billion by 2032.

Key Takeaways

• The UAE logistics market share is also influenced by trends such as growing demand for foreign goods, development of integrated supply chain networks, and advancements in logistics technology.

• The UAE ranked 11th in the Logistics Performance Index in 2018, ahead of Hong Kong and the USA, and other Middle Eastern countries such as Saudi Arabia and Oman.

• As per industry reports, the transportation and storage sector accounted for 5.1% of the country's GDP in 2021, up from 4.5% in 2020, which bodes well for the logistics market in UAE.

In the warehousing sector, the UAE has a well-established infrastructure, including the Jebel Ali Free Zone Authority, Al Qouz, Dubai Investment Park, Ras Al Khor, Dubai Airport Free Zone Industrial Park, and Dubai Internet City. The country also has warehousing space in Sharjah, including Emirates Industrial City and Industrial area, and in Abu Dhabi, including Khalifa Industrial Zone Abu Dhabi (KIZAD), Al Markaz Industrial Development, and Mussafah Industrial Area. In conclusion, the UAE has a strong logistics and warehousing sector, leading to significant investments.

Moreover, the UAE government plans to invest USD13.6 billion (AED50 billion) in the UAE Railway Program as part of the "Projects of the 50" initiative, which aims to enhance investment in the country over the next 50 years and can lead to UAE logistics market growth.

The UAE logistics market is driven by rapidly growing infrastructure development, including the development of logistics corridors and multimodal hubs. The Dubai Industrial Strategy 2030 aims to elevate the output of the manufacturing sector, such as automotive, assisting logistics companies to capitalise on the space.

Also, last-mile delivery has become a focal point in the UAE logistics market due to the increasing demand for faster and more convenient delivery options. Companies are investing in innovative last-mile delivery solutions such as drones, autonomous vehicles, and locker systems to streamline to reduce delivery times, costs, and carbon emissions while improving overall customer experience.

In the UAE, the 3PL segment is primarily dominated by international logistics companies, such as DHL, FedEx, and UPS. The growth of this segment is driven by the increasing demand for end-to-end logistics solutions, as companies look to outsource their entire supply chain operations to a single service provider.

Market Segmentation

UAE Logistics Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Model Type

• 1 PL

• 2 PL

• 3 PL

• Others

Market Breakup by Transportation Mode

• Roadways

• Seaways

• Railways

• Airways

Market Breakup by End User

• Manufacturing

• Consumer Goods and Retail

• Food and Beverages

• IT Hardware and Telecom

• Healthcare

• Chemicals

• Construction

• Automotive

• Oil and Gas

• Others

Market Breakup by Region

• Dubai 

• Abu Dhabi

• Others

Competitive Landscape

Market players are utilising advancements in technology and data analytics to streamline processes, manage inventory levels, optimise routes, and ensure timely delivery of goods.

• Global Shipping & Logistics LLC

• Aramex International LLC 

• United Parcel Service, Inc. 

• Schenker AG 

• C.H. Robinson Worldwide Inc. 

• Deutsche Post AG 

• DSV A/S 

• FedEx Corporation 

• CMA CGM Group (CEVA Logistics SA) 

• Kuehne + Nagel International AG  

• Expeditors International of Washington, Inc.  

• Kintetsu World Express Inc. 

• A.P. Møller – Mærsk A/S 

• Others

Key Highlights of the Report