Report Overview

UAE Freight and Logistics Market – Industry Trends & Forecast Report, 2030

The UAE Freight and Logistics Market size was estimated at USD 278.34 billion in 2023. During the forecast period between 2024 and 2030, the UAE Freight and Logistics Market size is projected to grow at a CAGR of 6.18% reaching a value of USD 402.12 billion by 2030. Prominent drivers of the market are the increasing trade agreements, rising logistics infrastructure, and technological advancements that facilitate faster delivery and growing efficient supply chain operations. The UAE's freight industry has emerged as a key player on the global stage, thanks in large part to Dubai's strategic location and rapid growth across various sectors. Dubai serves as a crucial gateway linking Africa and Southeast Asia with America and Europe. As industries increasingly modernize and embrace global e-commerce, the adoption of technology is essential to remain relevant. Enterprises that fail to integrate technology into their operations risk becoming outdated. The freight industry in the UAE has successfully embraced this shift, positioning itself to thrive in the evolving business landscape. Also, the growth of e-commerce has transformed consumer buying habits, with expectations for rapid, cost-free shipping and competitive prices. These heightened demands challenge traditional logistics and supply chain systems, pushing businesses to adapt to offer low-cost, on-demand delivery. As e-commerce claims a greater share of retail, its impact on logistics and transportation is significant, requiring organizations to strategize for increased volume and quicker deliveries.

Freight and Logistics Market – Overview

Freight and logistics refer to the processes involved in the transportation, storage, and distribution of goods and commodities. This can include the use of various modes of transport such as trucks, trains, ships, and airplanes. Logistics encompasses a broader set of operations beyond transportation, including inventory management, warehousing, packaging, and order fulfillment. Together, freight and logistics are crucial components of supply chain management, ensuring that goods move efficiently from their point of origin to their final destination.

UAE Freight and Logistics Market

Growth Drivers

E-commerce Boom

The UAE Freight and Logistics Market is growing primarily due to the rapid expansion of the e-commerce sector. This growth is fueled by increased internet penetration and wider smartphone usage. As e-commerce thrives, it significantly impacts logistics, with package delivery often serving as customers' first direct interaction with a business. Logistics plays a critical role in enhancing customer experience because the entire transportation and distribution network is key to timely and reliable delivery. Consequently, some e-commerce companies are integrating logistics services into their operations, contributing to the industry's growth. These factors are expected to continue driving the UAE's logistics market growth during the forecast period.

African Continental Free Trade Agreement (AfCFTA)

The African Continental Free Trade Agreement (AfCFTA) is set to boost the UAE freight and logistics market by providing new opportunities for trade and investment. As the largest free trade area by the number of countries, AfCFTA creates a unified market across Africa, facilitating smoother trade among its members. Dubai, serving as a strategic gateway between the Middle East and Africa, stands to benefit significantly from this development. With AfCFTA's implementation, Dubai's trade with Africa is expected to grow by 10% annually, driven by reduced tariffs, enhanced regulatory frameworks, and improved logistics. UAE-based companies like Etisalat and Emirates, already established in Africa, will likely expand their presence, fostering greater collaboration. This agreement paves the way for a more integrated market, offering substantial growth potential for the UAE Freight and Logistics Market.

Challenges

Volatile Fuel Prices

Fuel price volatility is a significant constraint on the UAE Freight and Logistics Market, impacting costs and planning. Fluctuating fuel prices directly affect transportation expenses, which can lead to higher shipping costs and narrower profit margins for logistics companies. This uncertainty complicates budgeting and financial forecasting, making it challenging for businesses to maintain consistent pricing for their services. As a result, companies may need to adjust their operations, optimize routes, or adopt more fuel-efficient technologies to mitigate the impact of volatile fuel prices on the logistics market in the UAE.

Impact of Escalating Geopolitical Tensions on UAE Freight and Logistics Market

Geopolitical tensions can significantly impact the UAE Freight and Logistics Market, leading to disruptions in trade routes, increased security risks, and elevated operational costs. When geopolitical events cause border closures or restrictions, shipping delays become more likely, affecting supply chain reliability. These disruptions can result in higher transportation costs and hinder timely delivery of goods. Additionally, heightened security concerns may require logistics companies to implement stricter protocols, adding to operational expenses. Geopolitical tensions also pose risks to business partnerships and international trade agreements, potentially reducing market opportunities. To navigate these challenges, UAE logistics companies must remain flexible and develop contingency plans to maintain business continuity.

UAE Freight and Logistics Market

Segmental Coverage

UAE Freight and Logistics Market – By Shipping Type

By shipping type, the UAE Freight and Logistics Market is divided into Roadways, Railways, Waterways, and Airways segments. The roadways segment holds the highest share in the UAE Freight and Logistics Market by shipping type. The UAE's road freight sector, which is the primary mode of transportation, is seeing a shift towards electric and autonomous trucks. In May 2023, Einride, a leading provider of electric and autonomous freight solutions, joined forces with the UAE Ministry of Energy and Infrastructure (MOEI) to bring these technologies to the UAE. The partnership involves deploying over 2,000 electric trucks and 200 autonomous trucks across a 550 km range, along with establishing eight charging stations offering over 500 charging points. This collaboration marks a significant advancement in the road freight sector, reflecting the industry's commitment to sustainability and the adoption of innovative technologies.

UAE Freight and Logistics Market – By Service

Based on service, the UAE Freight and Logistics Market is divided into Inventory Management, Packaging, Warehousing, Transportation, Distribution, and Custom Clearance segments. The transportation segment holds the highest share in the UAE Freight and Logistics Market by service. The UAE is known for its advanced transportation and infrastructure systems, featuring high-quality roads, metro networks, and maritime transport. These facilities are essential for driving economic growth and fostering business and tourism in the country. The rapid expansion of these sectors indicates significant growth in the UAE logistics market, creating various investment opportunities that can enhance the nation's digital capabilities and support sustainable economic development. The UAE's strategy aims to drive economic advancement by reducing transportation costs, carbon emissions, and accidents, while also boosting individual productivity by reclaiming substantial time otherwise lost to traditional commuting. This comprehensive approach reflects the UAE's commitment to innovation and sustainable growth.

UAE Freight and Logistics Market – By End Use Industry

Based on end use industry, the UAE Freight and Logistics Market is divided into Agriculture, Fishing & Forestry, Construction, Manufacturing, Oil & Gas, Mining & Quarrying, and Wholesale & Retail Trade segments. The manufacturing segment holds the highest share in the UAE Freight and Logistics Market by end use industry. It is primarily due to its ability to generate jobs, encourage innovation, and enhance economic resilience, which are key drivers for market growth. Furthermore, the UAE's strategic geographic location serves as an excellent hub for production and distribution, providing efficient logistics solutions that support a smooth supply chain. This allows for just-in-time manufacturing, reducing downtime and contributing to the sector's growth. These factors are fueling the expansion of the UAE's manufacturing industry and enhancing its appeal as a center for production and logistics.

Competitive Landscape

Major players operating in UAE Freight and Logistics Market include Deutsche Post DHL, United Parcel Service Inc., Ceva Logistics, Agility Logistics, Gulf Agency Company (GAC), Gulf Warehousing Company (GWC), Al-Futtaim Logistics, Aramex, and Emirates Logistics. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In March 2024 - Aramex introduced fully electric motorcycles to its last-mile delivery fleet in the United Arab Emirates (UAE). This move aligns with Aramex's goal of achieving a fleet that is 98% electric by 2030, in accordance with the Science Based Targets initiative (SBTi).

• In January 2024 - Kuehne + Nagel unveiled its Book & Claim in setting solution for electric vehicles as part of its effort to enhance decarbonization. The company prioritized this approach to allow customers using Kuehne + Nagel's road freight services to claim carbon reductions from electric trucks even when their goods are not directly transported by these vehicles.

Scope of the Report

By Shipping Type

• Roadways

• Railways

• Waterways

• Airways

By Service

• Inventory Management

• Packaging

• Warehousing

• Transportation

• Distribution

• Custom Clearance

By End Use Industry

• Agriculture

• Fishing & Forestry

• Construction

• Manufacturing

• Oil & Gas

• Mining & Quarrying

• Wholesale & Retail Trade

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. UAE Freight and Logistics Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. E-commerce Boom
         2. African Continental Free Trade Agreement (AfCFTA)
         3. Rising Urbanization
         4. Cold Chain Expansion
      2. Restraints
         1. Infrastructure Challenges
         2. Fuel Price Volatility
      3.  Opportunities
         1. Technology Adoption
         2. Various Sustainability Initiatives
      4. Challenges
         1. Informal Sector Activity
         2. Security Concerns
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. UAE Freight and Logistics Market Marketing Strategies
5. UAE Freight and Logistics Market: pricing Analysis
6. UAE Freight and Logistics Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Shipping Type
         1. Roadways
         2. Railways
         3. Waterways
         4. Airways
      2. By Service
         1. Inventory Management
         2. Packaging
         3. Warehousing
         4. Transportation
         5. Distribution
         6. Custom Clearance
      3. By End Use Industry
         1. Agriculture
         2. Fishing & Forestry
         3. Construction
         4. Manufacturing
         5. Oil & Gas
         6. Mining & Quarrying
         7. Wholesale & Retail Trade
7. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. UAE Freight and Logistics Company Market Share Analysis, 2023
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
8. Impact of Escalating Geopolitical Tensions on UAE Freight and Logistics Market
9. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
   1. Deutsche Post DHL
   2. United Parcel Service Inc.
   3. Ceva Logistics
   4. Agility Logistics
   5. Gulf Agency Company (GAC)
   6. Gulf Warehousing Company (GWC)
   7. Al-Futtaim Logistics
   8. Aramex
   9. Emirates Logistics
   10. Other Prominent Players
10. Key Strategic Recommendations
11. Research Methodology
    1.    Qualitative Research
       1.  Primary & Secondary Research
    2.    Quantitative Research
    3.    Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.    Breakdown of Primary Research Respondents, By Country
    5.    Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

List of Figures

Figure 1       UAE Freight and Logistics Segmentation                 

Figure 2       UAE Freight and Logistics Market Value Chain Analysis              

Figure 3       Company Market Share Analysis, 2023         

Figure 4       UAE Freight and Logistics Market Size, By Value (USD Billion), 2019–2030              

Figure 5       UAE Freight and Logistics Market Share, By Shipping Type, By Value, 2019–2030                  

Figure 6       UAE Freight and Logistics Market Share, By Service, By Value, 2019–2030              

Figure 7       UAE Freight and Logistics Market Share, By End Use Industry, By Value, 2019–2030          

List of Tables

Table 1        UAE Freight and Logistics Market Size, By Value (USD Billion), 2019–2030    

Table 2        UAE Freight and Logistics Market Size, By Shipping Type, By Value, 2019–2030         

Table 3        UAE Freight and Logistics Market Size, By Service, By Value, 2019–2030      

Table 4        UAE Freight and Logistics Market Size, By End Use Industry, By Value, 2019–2030

Table 5        Deutsche Post DHL Company Overview

Table 6        Deutsche Post DHL Financial Overview

Table 7        United Parcel Service Inc. Company Overview

Table 8        United Parcel Service Inc. Financial Overview

Table 9        Ceva Logistics Company Overview

Table 10      Ceva Logistics Financial Overview

Table 11      Agility Logistics Company Overview

Table 12      Agility Logistics Financial Overview

Table 13      Gulf Agency Company (GAC) Company Overview

Table 14      Gulf Agency Company (GAC) Financial Overview

Table 15      Gulf Warehousing Company (GWC) Company Overview

Table 16      Gulf Warehousing Company (GWC) Financial Overview

Table 17      Al-Futtaim Logistics Company Overview

Table 18      Al-Futtaim Logistics Financial Overview

Table 19      Aramex Company Overview

Table 20      Aramex Financial Overview

Table 21      Emirates Logistics Company Overview

Table 22      Emirates Logistics Financial Overview