Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 7.33 Billion |
| Market Size (2030) | USD 9.49 Billion |
| Growth Rate (2025 - 2030) | 5.29% CAGR |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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GCC Contract Logistics Market Analysis by Mordor Intelligence
The GCC Contract Logistics Market size is estimated at USD 7.33 billion in 2025, and is expected to reach USD 9.49 billion by 2030, at a CAGR of 5.29% during the forecast period (2025-2030). Regional governments are channeling record infrastructure spending into free trade zones, multimodal corridors, and digital trade platforms, positioning contract logistics as a cornerstone of diversified economic growth. Accelerating e-commerce, large-scale industrial projects under Saudi Vision 2030, and rising healthcare shipment volumes are amplifying demand for sophisticated fulfillment, cold-chain, and value-added services. Competitive intensity is increasing as global integrated logistics players add robotics and data-driven solutions while regional specialists leverage local knowledge to secure long-term partnerships. Despite strong momentum, cabotage rules and a chronic shortage of Grade-A warehouses continue to inflate operating costs and curb network optimization.
Key Report Takeaways
- By service, Warehousing and Distribution led with 47% of the GCC Contract Logistics market share in 2024. The GCC Contract Logistics market for Value-Added Services is forecast to grow at a 7.80% CAGR between 2025-2030.
- By end-user industry, Consumer Goods and Retail held 32% of the GCC Contract Logistics market size in 2024. The GCC Contract Logistics market for Healthcare and Pharmaceuticals is expanding at a 9.16% CAGR between 2025-2030.
- By contract duration, Long-term agreements (≥ 1 year) accounted for 68% of the GCC Contract Logistics market share in 2024. The GCC Contract Logistics market for Short-term contracts is projected to grow at a 6.94% CAGR between 2025-2030.
- By geography, Saudi Arabia commanded 53% of the GCC Contract Logistics market size in 2024. The GCC Contract Logistics market for the UAE is set for the fastest CAGR of 6.22% between 2025-2030.
GCC Contract Logistics Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Rapid e-commerce fulfillment growth | +1.2% | Saudi Arabia, UAE | Medium term (2-4 years) |
| Vision 2030 industrial diversification logistics needs | +1.5% | Saudi Arabia, spillover GCC | Long term (≥ 4 years) |
| Free trade zones expanding warehousing demand | +0.8% | UAE, Saudi Arabia, Oman | Medium term (2-4 years) |
| Government cold-chain investment | +0.6% | Saudi Arabia, UAE, Qatar | Medium term (2-4 years) |
| Gulf Railway multimodal connectivity | +0.7% | All GCC countries | Long term (≥ 4 years) |
| In-Country Value mandates favoring local 3PLs | +0.5% | Saudi Arabia, UAE, Oman | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Rapid e-commerce fulfillment growth in KSA and UAE
Online orders in the MENA region climbed 30% in 2024, with the UAE’s average order value moving from USD 30 to USD 35.6. Around 42% of e-commerce firms still list last-mile efficiency as the chief obstacle. Contract logistics providers are building regional fulfillment centers, adding parcel sortation automation, and integrating cross-border routing tools to cut delivery windows while controlling cost.
Vision 2030 industrial diversification projects require integrated logistics
Saudi Arabia approved USD 50 billion of projects under Vision 2030 in 2024 and earmarked funding for 59 national logistics centers. NIDLP allocates a further USD 36 billion for logistics infrastructure, plus USD 28 billion for industrial zones. These capital programs demand turnkey contract logistics capable of synchronized inbound, storage, and outbound flows. Operators embedded at project sites report rising localization targets, with 68% of companies prioritizing supply-chain localization for resilience.
Expansion of free trade zones enhances warehousing demand
Jafza’s Phase 2 logistics park brings an extra 360,000 sq ft of space via an AED 90 million (USD 24.51 million) investment to help lift UAE logistics revenue to AED 200 billion (USD 54.46 billion) by 2032. Umm Al Quwain FTZ adds 350,000 sq ft of warehouses and 65,000 sq ft of commercial area, boosting inventory positioning flexibility. Multinational firms cite these hubs’ simplified customs and value-added zones as decisive factors in regional network design.
Government-led cold-chain investment boosting temperature-controlled logistics
Temperature-controlled shipments grew more than 30% in 2023, the highest on record, driven by pharmaceutical and food security priorities. Technology layers such as AI-enabled condition monitoring are improving product integrity.[1]International Air Transport Association Research Division, “Temperature-Controlled Air Freight Trends 2024,” IATA Publications, iata.org Logistics players are deploying dedicated GDP-compliant facilities; Aramex highlights quality assurance and compliance as competitive requirements.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Cabotage restrictions | −0.8% | All GCC countries | Medium term (2-4 years) |
| Shortage of Grade-A warehousing | −0.6% | Saudi Arabia, UAE | Short term (≤ 2 years) |
| Fragmented customs procedures | −0.4% | All GCC countries | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Cabotage restrictions are hindering cross-border network optimization
Regional rules barring foreign tractors from domestic moves raise cross-border costs 18-23% and add 36 hours to multi-border transits[2]Gulf Cooperation Council Secretariat General, “Cabotage Regulations and Harmonization Roadmap,” GCC Transport Committee, gcc-sg.org. Temperature-sensitive cargo suffers most. Providers adopt hub-and-spoke models, yet still face double handling at borders. Regulatory harmonization lags physical links such as the Gulf Railway, muting potential productivity gains.
Shortage of Grade-A warehousing is increasing operating costs
Supply of modern space remains tight, lifting rents and forcing retrofits. In Saudi Arabia, logistics assets under management total 3.5 million sq ft, yet expansion to USD 2 billion of assets is planned by 2025 to narrow the gap. Dubai Logistics City and other pipeline projects will ease constraints, but near-term shortages elevate service costs and erode margins.
Segment Analysis
By Service: Warehousing holds scale, value-added services accelerate
Warehousing and distribution captured 47% of GCC Contract Logistics market share in 2024 on the back of the region’s role as a crossroads between Asia, Europe, and Africa. GCC Ongoing investments include Saudi Arabia’s USD 2.66 billion program to build 18 logistics zones by 2030. Robotics and high-bay automation are raising throughput and labor productivity, enabling faster cycle times that retailers and manufacturers demand. Yet limited Grade-A capacity still inflates costs for temperature-controlled storage, keeping barriers high for new entrants and supporting premium pricing.
Value-added services are projected to expand at 7.80% CAGR through 2030 as 3PLs bundle kitting, light assembly, and customization into comprehensive solutions. High-tech adoption drives this growth: DHL is deploying 1,000 additional Boston Dynamics robots after investing EUR 1 billion (USD 1.16 billion) in automation. Swisslog is promoting AutoStore robots that align with Saudi Vision 2030’s innovation push. As clients pivot from transactional storage to integrated value chains, providers that integrate IT visibility, co-packing, and compliance support gain share.
Note: Segment shares of all individual segments available upon report purchase
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By End-User Industry: Retail leads, healthcare builds momentum
Consumer goods and retail, including e-commerce, represented 32% of the GCC Contract Logistics market in 2024, owing to rising digital adoption and omnichannel retail models. Platforms in Saudi Arabia and the UAE registered the highest GMV in the region, amplifying demand for rapid fulfillment and flexible returns. Retailers pursue distributed inventory and predictive replenishment, driving 3PL collaboration in network design, last-mile optimization, and reverse logistics.
Healthcare and pharmaceuticals is the fastest climber with a 9.16% forecast CAGR. GCC Contract Logistics market size for this vertical is expected to double by 2030 as Saudi Arabia allocates more than USD 65 billion to hospital infrastructure and targets 65% private sector participation. Strict temperature and traceability standards favor providers that invest in GDP-certified facilities, IoT-based monitoring, and regulatory expertise[3]Saudi Food & Drug Authority, “Good Distribution Practice Guidelines for Pharmaceutical Products,” SFDA Standards, sfda.gov.sa. Partnerships with global pharma firms and vaccine distributors are reinforcing cold-chain specialization across the region.
Note: Segment shares of all individual segments available upon report purchase
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By Contract Duration: Long-term commitments dominate, flexibility gains favor
Long-term contracts of at least 1 year accounted for 68% of the GCC Contract Logistics market in 2024, reflecting the capital-intensive nature of dedicated warehouses, fleet investments, and IT integration. Multi-year deals enable cost predictability and justify automation expenditures for both shippers and 3PLs. Gulf Warehousing Company focuses on such partnerships to underpin expansion plans.
Short-term agreements under 12 months are, however, growing at 6.94% CAGR as volatility, rapid product launches, and technology disruptions compel companies to retain flexibility. GCC Contract Logistics market size for short-term engagements remains smaller yet increasingly important for projects in renewables, events, and humanitarian relief. Firms adopt modular warehousing and pay-as-you-go transport to balance risk, while digital freight platforms help match capacity in real time.
Geography Analysis
Saudi Arabia held 53% of the GCC Contract Logistics market in 2024, powered by Vision 2030’s goal of a global logistics hub backed by over SR1 trillion (USD 267 billion) in planned spending. The Kingdom has already invested SR200 billion (USD 53.31 billion) toward infrastructure upgrades, including 59 logistics centers spanning 100 million sq m. Logistics market investments exceeding USD 106.6 billion are improving port capacity, corridor roads, and bonded zones. National e-commerce and industrial strategies continue to elevate contract logistics demand for technology-enabled warehousing and domestic distribution.
The UAE is projected to record a 6.22% CAGR, the fastest within the GCC Contract Logistics market, leveraging world-class sea ports, air hubs, and digital trade initiatives. Jafza’s ongoing expansion and Dubai Logistics City’s integrated freight campus support the country’s ambition to grow logistics revenue to AED 200 billion (USD 54.46 billion) by 2032. Advanced Trade and Logistics Platform rollouts reduce documentation steps and provide single-window visibility, attracting multinationals to set up regional distribution centers.
Qatar, Kuwait, Bahrain, and Oman collectively diversify the GCC Contract Logistics market. Oman’s Port of Duqm expansion, backed by new investment, anchors an Indian Ocean gateway strategy. Kuwait is streamlining customs while Bahrain promotes a five-hour clearance pledge to lure just-in-time inventory flows. The Gulf Railway will eventually bind these markets into a contiguous multimodal corridor, promising cost efficiencies once regulatory harmonization catches up.
Competitive Landscape
The GCC Contract Logistics industry is moderately concentrated. Global integrators such as DHL Supply Chain, CEVA Logistics, and Kuehne + Nagel compete against regional champions Aramex, Gulf Warehousing Company, and Almajdouie Logistics. Automation investments are redefining the playing field; DHL’s commitment of EUR 1 billion (USD 1.16 billion) and its pact with Boston Dynamics to add 1,000 robots expanding productivity and safety. CEVA deploys cloud-based control towers that feed AI route engines, while Kuehne + Nagel scales pharma-grade sites in Dubai South.
Regional firms counter with localized compliance expertise and integrated land-bridge services. GWC logged QAR 1.582 billion (USD 434.25 million) revenue in 2024 and now scales e-commerce, freight forwarding, and contract logistics across Qatar and neighboring states. Almajdouie invests in bonded trucking networks that align with In-Country Value mandates, securing petrochemical contracts.
Strategic acquisitions accelerate capability building. Recent transactions target cold-chain, reverse logistics, and e-commerce tech, signaling consolidation as a route to market breadth and digital depth. Sustainability emerges as a competitive axis: GWC pledges a 3% reduction in Scope 1 and 6% in Scope 2 emissions, installing solar rooftops and LED retrofits. Clients increasingly weigh ESG metrics in tender evaluations, reinforcing the need for green operations alongside speed and cost.
GCC Contract Logistics Industry Leaders
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DHL Supply Chain (Deutsche Post DHL Group)
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Aramex PJSC
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CEVA Logistics
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Kuehne + Nagel International AG
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DSV Solutions
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- May 2025: Investcorp invested in the Port of Duqm expansion, boosting Oman’s logistics capacity.
- May 2025: Oman signed 18 agreements worth RO 100 million (USD 260 million) on Logistics Day 2025 for ports, airports, and smart technologies.
- March 2025: DHL Group and Boston Dynamics agreed to deploy 1,000 additional robots following a EUR 1 billion (USD 1.16 billion) automation program.
- February 2025: The International Finance Corporation signed three agreements in Oman to spur sustainable finance and widen the country’s economic base, with one deal earmarking joint investments for the logistics sector.
Research Methodology Framework and Report Scope
Market Definitions and Key Coverage
Our study defines the GCC contract logistics market as the value generated when a third-party provider, engaged under an annual or multi-year agreement, manages warehousing, in-country transportation, inventory visibility, order fulfillment, and limited reverse flows for shippers across Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Oman, and Bahrain.
Scope exclusion: cross-border freight forwarding revenues that are billed outside the GCC, mail/parcel operators' stand-alone last-mile income, and pure storage rentals are not counted.
Segmentation Overview
- By Service
- Transportation Management
- Road
- Air
- Sea
- Rail
- Warehousing and Distribution
- Cold Chain/Temperature-Controlled
- Non-Cold Chain/Non-Temperature-Controlled
- Value-Added Services (Kitting, Packaging, Assembly, etc.)
- Transportation Management
- By End-User Industry
- Manufacturing and Automotive
- Consumer Goods and Retail (incl. E-commerce)
- High-Tech and Electronics
- Healthcare and Pharmaceuticals
- Oil, Gas and Chemicals
- Other End Users
- By Contract Duration
- Short-Term (Less Than 1 Year)
- Long-Term (Greater than or equal to 1 Year)
- By Country
- Saudi Arabia
- United Arab Emirates
- Qatar
- Kuwait
- Oman
- Bahrain
Detailed Research Methodology and Data Validation
Primary Research
Mordor analysts interviewed regional operations heads at major 3PLs, procurement managers in retail, pharma, and petrochemical verticals, and technology vendors in Dubai, Riyadh, and Doha. These exchanges clarified outsourced-share trends, average price per pallet-month, and expected e-commerce surge buffers, which in turn validated secondary inputs and adjusted cost-plus assumptions.
Desk Research
We began by mining open datasets such as national customs revenue dashboards, the UAE Federal Competitiveness & Statistics Center, Saudi Arabia's Ministry of Transport performance bulletins, World Bank Logistics Performance Index tables, and trade association briefs from FIATA and the Arab Union of Land Transport. Company 10-Ks, IPO filings, and press releases enriched contract values and typical service price points, while D&B Hoovers and Dow Jones Factiva helped us size leading 3PL accounts. These sources establish baseline shipment tonnage, warehouse stock, and average contract duration. The sources cited above are illustrative only; many other publications were reviewed during data collection and verification.
Market-Sizing & Forecasting
A top-down build starts with official production, import, and e-commerce parcel data to reconstruct the demand pool, which is then split by 3PL penetration and average contract value. Select bottom-up checks, sampled warehousing square-meter roll-ups and lane-level freight tariffs, fine-tune totals. Key variables feeding the model include Saudi warehouse occupancy rates, UAE B2C parcel volume, non-oil GDP growth, cold-chain cubic-meter additions, and average 3PL contract tenure. Multivariate regression with scenario analysis projects these drivers to 2030; gaps in bottom-up inputs are bridged by regional ASP benchmarks agreed during primary calls.
Data Validation & Update Cycle
Outputs pass a three-layer review: cross-series variance scans, peer comparison flags, and senior analyst sign-off. Reports refresh yearly, with interim updates triggered by material events such as a new rail corridor or a major 3PL acquisition, ensuring clients receive the most current baseline.
Why Our GCC Contract Logistics Baseline Commands Reliability
Published market values often diverge because firms adopt different service baskets, pricing ladders, and refresh cadences.
Key gap drivers here center on whether insourced logistics is counted, whether freight forwarding is bundled, how contract length filters are applied, and the currency conversion window each firm selects when oil-linked exchange rates swing.
Benchmark comparison
| Market Size | Anonymized source | Primary gap driver |
|---|---|---|
| 7.33 B (2025) | Mordor Intelligence | - |
| 12.5 B (2024) | Global Consultancy A | Bundles cross-border forwarding and global MEA scope without contract-length filter |
| 9.16 B (2025) | Regional Consultancy B | Includes insourced logistics and uses uniform ASP across service tiers |
Differences above show that when comparable variables are aligned, outsourced share, GCC-only scope, and contract-bound revenue, Mordor's disciplined approach delivers a balanced, transparent figure that decision-makers can trace back to clear data points and repeatable steps.
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Key Questions Answered in the Report
What is the current size of the GCC Contract Logistics market and how fast is it growing?
The market stands at USD 7.33 billion in 2025 and is forecast to reach USD 9.49 billion by 2030, reflecting a 5.29% CAGR.
Which country holds the largest share in the GCC Contract Logistics market?
Saudi Arabia leads with 53% of the market in 2024, supported by Vision 2030 investments that aim to establish 59 logistics centers.
Which service segment dominates the market today?
Warehousing and distribution accounts for 47% of revenue in 2024, driven by extensive investments in logistics zones across Saudi Arabia and the UAE.
What end-user industry is expanding the fastest?
Healthcare and pharmaceuticals shows the quickest pace, advancing at a 9.16% CAGR during 2025-2030 due to rising cold-chain needs and healthcare spending.
What are the primary challenges limiting market efficiency?
Cabotage restrictions, Grade-A warehouse shortages, and varying customs procedures add cost, extend lead times, and restrict cross-border network optimization.
How concentrated is the competitive landscape?
The top five logistics providers together control roughly 55% of market revenues, indicating moderate concentration with both global and regional players holding influence.
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