GCC Air Freight Transport Market Analysis by Mordor Intelligence
The GCC Air Freight Transport Market size is estimated at USD 18.06 billion in 2025, and is expected to reach USD 25.89 billion by 2030, at a CAGR of 7.46% during the forecast period (2025-2030).
The expansion is shaped by national vision programs that funnel record infrastructure capex into airports, growing cross-border e-commerce volumes, and the region’s hub position between Asia, Europe, and Africa. Rising cargo digitization, new freighter orders from incumbent airlines, and specialized cold-chain corridors for pharmaceuticals and perishables further underpin momentum. Competitive intensity is increasing as incumbents race to add main-deck capacity and digital booking links, while secondary airports carve out niche roles through cargo-village projects and express parcel handling. At the same time, volatile jet-fuel prices and intermittent geopolitical airspace closures represent material headwinds that pressure yield management and schedule reliability.
Key Report Takeaways
- By destination, international services held 81% of the GCC air freight transport market share in 2024. Domestic routes are projected to post the fastest 4.80% CAGR to 2030.
- By carrier type, belly-hold cargo commanded a 67% share of the GCC air freight transport market size in 2024. Dedicated freighter operations are forecast to expand at a 4.10% CAGR through 2030.
- By cargo type, general cargo captured 72% of the GCC air freight transport market size in 2024. Special cargo shipments are advancing at a 4.40% CAGR to 2030.
- By end-user industry, the manufacturing and automotive segments represented 27% of the 2024 value. E-commerce and retail volumes are set to climb at a 5.60% CAGR toward 2030.
- By country, Saudi Arabia led with a 37% country-level GCC air freight transport market share in 2024, while the UAE is projected to expand at a 4.20% CAGR to 2030.
GCC Air Freight Transport Market Trends and Insights
Drivers Impact Analysis
| Driver | ( ~ ) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Boom in cross-border e-commerce | +1.8% | GCC-wide; strongest in UAE & Saudi Arabia | Short term (≤ 2 years) |
| Vision 2030/2050 logistics capex wave | +2.1% | Primarily Saudi Arabia; spillover to Qatar & UAE | Medium term (2-4 years) |
| Geo-strategic Asia–Europe–Africa hub role | +1.4% | Dubai & Doha hubs | Long term (≥ 4 years) |
| Pharma & perishables corridor accreditations | +0.9% | UAE & Qatar; expanding to Saudi Arabia | Medium term (2-4 years) |
| Cargo Digital Community Systems rollout | +0.7% | GCC-wide | Short term (≤ 2 years) |
| Carbon-neutral FTZ slot incentives | +0.5% | Dubai South & Qatar Free Zones | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Boom in Cross-Border E-Commerce
Cross-border online shopping is transforming shipment profiles as the GCC e-commerce market is on track to reach USD 49.78 billion by 2027, rising at an 11% annual pace. Young, digitally native consumers and >90% smartphone penetration underpin growth. Cainiao’s 2025 rollout of a pan-GCC cross-border network accelerates two-day delivery ambitions. Airlines respond by launching direct-to-consumer products such as Emirates Delivers, introduced in Saudi Arabia in 2024. Higher frequency of small parcels increases demand for belly-hold capacity, yet peak-season surges are nudging carriers to add dedicated freighters. Integrated payment and tracking APIs further shorten booking lead times, cementing e-commerce as a structural cargo demand driver.
Vision 2030/2050 Logistics Capex Wave
Saudi Arabia alone has earmarked USD 266 billion to add 59 logistics centers across 100 million m² and expand Riyadh’s airport to six runways by 2030[1]AGBI, “$266bn Logistics Hub Spend Starts in Saudi Arabia,” agbi.com. Parallel projects in Qatar and the UAE include new concourses at Hamad International and the Al Maktoum International mega-expansion, creating a synchronized capacity build-out. Network effects emerge as freight forwarders exploit multi-hub routings that consolidate loads and reduce transit times. New entrant Riyadh Air received its Air Operator Certificate in April 2025, underscoring the competitive shake-up. Over the medium term, the capex wave lifts throughput ceilings and offers airlines runway slots tailored for night-time cargo waves.
Geo-Strategic Asia–Europe–Africa Hub Role
Dubai and Doha processed 2.2 million t and 2.6 million t of freight, respectively, in 2024, equal to roughly two-thirds of Middle East air cargo. The proposed India-Middle East-Europe Corridor and Belt & Road alignments elevate Gulf hubs as the preferred consolidation points for triangulating Asia-Africa trade. Around-the-clock operations, minimal weather disruption, and slot flexibility allow carriers to guarantee tighter delivery windows than northern-hemisphere gateways. As shippers diversify for resilience, the GCC air freight transport market gains stickiness from transit-time advantages and bonded-warehouse ecosystems.
Pharma & Perishables Corridor Accreditations
Premium yields flow from certified cold-chain corridors. Emirates SkyCargo joined the –15 °C perishable club in late 2024 after upgrading cool-room infrastructure. Etihad Cargo secured IATA CEIV Lithium Batteries accreditation in early 2024, reflecting a pivot to specialized handling[2]Air Cargo Week, “Etihad Cargo Attains IATA CEIV Lithium Batteries Certification,” aircargoweek.com. Qatar’s live-animal center reinforces a niche in temperature- and welfare-sensitive cargo. Operators monetize expertise developed under extreme GCC climates to win contracts on other hot-weather routes, while pharmaceutical makers prize the region’s validated end-to-end chain of custody.
Restraints Impact Analysis
| Restraint | ( ~ ) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Volatile jet-fuel surcharges | −1.2% | GCC-wide | Short term (≤ 2 years) |
| Geopolitical air-space closures | −0.8% | Regional transit routes | Medium term (2-4 years) |
| DG-handler talent shortage at secondary airports | −0.4% | Kuwait, Bahrain, Oman | Medium term (2-4 years) |
| Landside cold-chain bottlenecks | −0.3% | GCC-wide | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Volatile Jet-Fuel Surcharges
Fuel averages of USD 87 per barrel in 2025 equate to around 30% of airline operating costs, exposing carriers to earnings swings. Dynamic surcharge formulas help recover spikes yet risk eroding price-sensitive volumes. Carriers hedge and retrofit winglets to pare burn rates, while sustainability mandates push them toward costlier SAF blends. Emirates established a USD 200 million sustainability fund and signed multi-year SAF offtakes, partly buffering volatility with environmental differentiation. Nevertheless, persistent oil-market turbulence remains an immediate profit headwind.
Geopolitical Air-Space Closures
Intermittent no-fly zones force re-routing that lengthens block times, raises CO₂ output, and ties up aircraft hours[3]Radio Free Europe/Radio Liberty, “Skies in Turmoil: Military Conflicts Remapping Global Aviation,” rferl.org. Airlines activate contingency corridors but incur higher over-flight fees and fuel burn. Shippers of temperature-sensitive pharma downgrade hubs seen as stability risks, diluting the region’s value proposition. Though carriers such as Qatar Airways have demonstrated agility with rapid network adjustments, continued geopolitical flare-ups weigh on schedule reliability and margins.
Segment Analysis
By Destination: International Services Anchor Volumes
International routes generated 81% of 2024 tonnage, underlining the GCC air freight transport market’s role as a trans-shipment bridge rather than a pure consumption zone. The segment benefits from hub-and-spoke strategies that pool cargo from Asia for onward lift to Europe and Africa. Saudia Cargo’s “Landing in China in 24” initiative exemplifies tailored corridor products for exporters. Domestic uplift is poised for a 4.80% CAGR to 2030 as Saudi industrial clusters and UAE northern-emirate logistics parks escalate inter-city flows. Intra-GCC e-commerce parcel volumes additionally shorten haul lengths yet increase frequency, supporting secondary night-time freighter rotations.
International dominance fortifies the GCC air freight transport market size through yield diversity, but domestic acceleration offers incremental resiliency by tapping intra-regional consumption. Regulatory harmonization across customs single windows is gradually lowering clearance times, encouraging manufacturers to divert time-critical components from road to air. Heightened dangerous-goods compliance, reflected in the IATA DGR 66th-edition addendum, imposes uniform training standards on both destination categories.
By Carrier Type: Belly-Hold Primacy Meets Freighter Expansion
Belly-hold lift accounted for 67% of the value in 2024 as passenger networks furnish widebody frequency at marginal cost. High seat-density deployments on Gulf super-connectors maximize lower-deck pallet positions, aligning with small-parcel e-commerce demand. Yet special-cargo complexity and peak-season constraints push operators toward purpose-built freighters. Emirates’ USD 1 billion purchase of five 777Fs slated for 2025-26 delivery will raise main-deck capacity 30%, illustrating the shift. Parallel orders from Gulf Air for twelve 787s augment belly capacity while preserving flexibility.
Growing freighter fleets diversify revenue and buffer passenger-cycle shocks, positioning carriers to lock in multi-year contracts for pharma and oversized industrial cargo. However, the dual-model approach inflates training and maintenance overhead. ICAO’s revised dangerous-goods syllabus demands operator-specific instruction, raising compliance spend but favoring scale players with in-house academies[4]ICAO, “New Training Provisions for Dangerous Goods Transport,” icao.int. Over 2025-2030, the GCC air freight transport market share of freighters is forecast to edge higher as e-commerce consolidators charter block space on trunk lanes.
By Cargo Type: General Cargo Leads but Special Cargo Gains
General cargo comprised 72% of 2024 throughput, reflecting steady flows of manufactured goods and consumer electronics between Asian factories and global retailers. The segment enjoys economies of density and standardized handling, sustaining baseline aircraft utilization. Special cargo—pharma, perishables, live animals—exhibits a 4.40% CAGR, outpacing the broader GCC air freight transport market. Emirates Vital and Etihad’s cool-chain upgrades illustrate premium-service migration that boosts yield per kilogram.
The interplay is symbiotic: high-margin special cargo cross-subsidizes competitive pricing in general freight, while general volumes fill back-haul lanes. Cold-room expansions at Dubai South and Doha free zones lessen exposure to tarmac heat, broadening the special-cargo addressable market. Blockchain-based temperature logs and AI route planners reduce spoilage risk, enhancing customer confidence. Consequently, the GCC air freight transport market size attached to special cargo is expected to reach mid-teen share by 2030 without eroding general-cargo dominance.
By End-User Industry: Manufacturing Core Faces E-Commerce Upswing
Manufacturing and automotive shippers contributed 27% of the 2024 value, leveraging the Gulf as a pivot for knock-down kits and just-in-time components. Automotive parts transit Saudi ports for final assembly in NEOM and other mega-projects, driving consistent uplift. Meanwhile, e-commerce and retail cargo is projected to log a 5.60% CAGR to 2030 as direct-to-consumer storefronts scale fulfillment centers within free zones. Payment-gateway integration and one-stop customs desks lower entry barriers for SMEs, spurring parcel proliferation.
Healthcare and pharmaceuticals maintain a sturdy volume base coupled with premium yields. Temperature-controlled corridors now extend to Riyadh and Jeddah, distributing imported biologics for regional clinical trials. Perishables such as fresh berries and seafood benefit from agritech initiatives in Qatar and Oman, aiming to double export tonnages by 2028. Emerging cargos—the “Others” bucket—include renewable-energy turbine parts destined for Saudi wind farms and modular data-center pods for UAE cloud projects. Collectively, these trends diversify the GCC air freight transport industry revenue mix.
Geography Analysis
Saudi Arabia held 37% of the 2024 value, supported by its Vision 2030 logistics outlay and expansive industrial pipeline. The Kingdom’s cargo capacity expansion, coupled with 59 planned logistics centers, cements its anchor status in the GCC air freight transport market. The UAE registers the fastest 4.20% CAGR to 2030 on the back of Dubai’s dual-airport system and free-zone incentives that waive corporate tax on re-export cargo. Al Maktoum International’s planned 12 million-ton annual capacity will deliver a structural uplift as phase one ramps up mid-decade.
Secondary hubs such as Sharjah International posted a 38.6% cargo surge to 195,909 t in 2024, absorbing overflow and benefitting from lower landing fees. Collectively, tier-two airports enhance redundancy in the GCC air freight transport market, providing alternative routings during peak congestion or airspace disruptions. Over the forecast horizon, diversified geographic spread is expected to smooth capacity bottlenecks and sustain network resilience.
Competitive Landscape
The market exhibits moderate fragmentation. Emirates’ 777F order raises main-deck lift by 30%, while Qatar’s joint venture with IAG Cargo and MASkargo, slated for late 2025, unlocks reciprocal network access and digital booking alignment. Etihad leverages Greenliner trials to cut fuel burn by 18% on selected sectors, translating efficiency into aggressive rate quotes.
New entrants intensify rivalry. Riyadh Air’s mid-2025 launch widens access to Saudi manufacturing clusters, while Gulf Air’s Dreamliner order expands belly capacity from Bahrain. Niche specialists focus on live-animal and dangerous-goods handling, where certification erects barriers. Technology investments, exemplified by Qatar Airways’ AI avatar “Sama” for customer engagement, differentiate service levels. Sustainability commitments emerge as must-haves; Emirates’ USD 200 million fuel fund and Etihad’s SAF agreements signal an evolving license to operate.
The interplay of mega-hubs and specialized feeders suggests continued consolidation, yet slot-controlled primary airports cap growth, creating space for agile second-tier operators. Overall, the GCC air freight transport market trajectory favors carriers that blend scale economics with product specialization and digital speed.
GCC Air Freight Transport Industry Leaders
-
Emirates SkyCargo
-
Qatar Airways Cargo
-
Saudia Cargo
-
Etihad Cargo
-
Jazeera Airways Cargo
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- July 2025: Gulf Air ordered 12 Boeing 787 Dreamliners, with options for six more, to grow belly-hold capacity across 50 destinations.
- June 2025: Saudia Cargo unveiled “Saudia Cargo Global” with TAM Group to expand network reach.
- June 2025: Etihad Airways signed a cargo cooperation deal with SF Airlines to widen Asia–GCC coverage.
- April 2025: Qatar Airways Cargo, IAG Cargo, and MASkargo announced a global joint business targeting Q4 2025 launch pending regulatory clearance.
GCC Air Freight Transport Market Report Scope
Airfreight is a transportation mode of delivering fast-speed shipments via aircraft, primarily for longer distances. The report offers a complete background analysis of the GCC air freight industry, including an assessment and contribution of the sector in the economy, market overview, market size estimation for key segments, key countries and emerging trends in the market segments, market dynamics, and key air freight parameters. The report also covers the impact of COVID-19 on the market.
The GCC air freight transportation market is segmented by services, by destination and by country. By services, the market is segmented by forwarding, airlines, mail, and other services. By destination, the market is segmented by domestic and international, and by country, the market is segmented by Saudi Arabia, United Arab Emirates, Qatar, and the Rest of GCC.
The report offers market size and forecasts for the GCC air freight transport market in value (USD) for all the above segments.
| Domestic |
| International |
| Belly Cargo |
| Freighter |
| General Cargo |
| Special Cargo |
| E-commerce & Retail |
| Manufacturing & Automotive |
| Healthcare & Pharmaceuticals |
| Perishables & Fresh Produce |
| High-Tech & Electronics |
| Others |
| Saudi Arabia |
| United Arab Emirates |
| Qatar |
| Kuwait |
| Bahrain |
| Oman |
| By Destination | Domestic |
| International | |
| By Carrier Type | Belly Cargo |
| Freighter | |
| By Cargo Type | General Cargo |
| Special Cargo | |
| By End-User Industry | E-commerce & Retail |
| Manufacturing & Automotive | |
| Healthcare & Pharmaceuticals | |
| Perishables & Fresh Produce | |
| High-Tech & Electronics | |
| Others | |
| By Country | Saudi Arabia |
| United Arab Emirates | |
| Qatar | |
| Kuwait | |
| Bahrain | |
| Oman |
Key Questions Answered in the Report
How large is the GCC air freight transport market in 2025?
It is valued at USD 18.06 billion with a 7.46% CAGR outlook to 2030.
Which segment is growing fastest within GCC air freight?
Domestic destinations show the highest 4.80% CAGR through 2030.
Why are Gulf carriers investing in dedicated freighters?
Specialized pharma, e-commerce, and oversized cargo require main-deck capacity unavailable in passenger holds.
What is the main risk facing GCC air cargo operators?
Volatile jet-fuel prices that account for roughly 30% of operating cost across the region.
Which country leads GCC air freight by market share?
Saudi Arabia commands a 37% share owing to its Vision 2030 infrastructure program.
How are sustainability goals influencing GCC cargo strategies?
Airlines are funding SAF projects and retrofitting fleets, exemplified by Emirates’ USD 200 million sustainability fund.
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