Market Size of gcc freight and logistics Industry
| Icons | Lable | Value |
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Study Period | 2017 - 2030 |
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Market Size (2024) | USD 76.1 Billion |
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Market Size (2030) | USD 109.9 Billion |
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Largest Share by Logistics Function | Freight Transport |
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CAGR (2024 - 2030) | 6.32 % |
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Largest Share by Country | Saudi Arabia |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
GCC Freight and Logistics Market Analysis
The GCC Freight and Logistics Market size is estimated at 76.1 billion USD in 2024, and is expected to reach 109.9 billion USD by 2030, growing at a CAGR of 6.32% during the forecast period (2024-2030).
76.1 Billion
Market Size in 2024 (USD)
109.9 Billion
Market Size in 2030 (USD)
5.21 %
CAGR (2017-2023)
6.32 %
CAGR (2024-2030)
Fastest Growing Market by Mode of Transport
6.58 %
Projected CAGR, Air, 2024-2030
Aligned with the goals outlined in Vision 2030, Saudi Arabia is actively pursuing the transformation of Riyadh Airport into a prominent logistics hub and six-runway airport.
Largest CEP Market by Destination
65.37 %
value share, Domestic, 2023
The E-commerce sector's growth has been a driving factor for the domestic CEP segment. The e-commerce sector grew by 7.6% YoY and reached USD 23.8 billion in 2023.
Largest Country
33.62 %
value share, Saudi Arabia, 2023
Following the adoption of the country's new policy, the transport and logistics sector is anticipated to represent 10% of the Saudi Arabian GDP by 2030, up from 6% in 2021.
Largest Market by End User Industry
28.59 %
value share, Wholesale and Retail Trade, 2023
The region's e-commerce market is primed for continued growth, which is expected to drive the wholesale and retail trade end-user segment.
Fastest Growing Warehousing Market by Temperature Control
7.24 %
Projected CAGR, Temperature Controlled, 2024-2030
In March 2023, Americold Realty Trust Inc. invested USD 3.9 million, acquiring a 49% stake in RSA Cold Chain. This partnership positions Americold for market entry and expansion in the Middle East.
The rising value of the infrastructure sector in GCC led by Saudi Arabia, leading to the overall demand for freight market
- The Saudi Arabian government has allocated SAR 40 billion (USD 10.6 billion) to bolster its road network. In 2023, it kickstarted four highway projects under the Public-Private Partnership (PPP) model. With a vision to position the nation as a major transportation hub, Saudi Arabia has set its sights on investing a substantial USD 147 billion, with a specific focus on advancing the transportation and logistics sector.
- In 2019, Saudi Arabia led the infrastructure sector in the GCC region, boasting a value of approximately USD 6.4 million. The GCC region, known for its diversification and business reforms, was poised to spearhead economic growth in the Middle East and North Africa in 2019. The region was gearing up for significant undertakings, including the Dubai Expo 2020 and the FIFA World Cup 2022 in Qatar. By 2022, social infrastructure projects worth around USD 50 billion were underway, with an additional USD 70 billion in various planning stages. Notably, Saudi Arabia accounted for USD 71 billion of this total, followed by Kuwait (USD 33 billion), Qatar (USD 5.7 billion), and the UAE (USD 4.7 billion).
- Between 2020 and 2025, the GCC's public and private sectors are projected to require a staggering USD 1.6 trillion in capital for infrastructure development, excluding mega-projects. While the private sector has emerged as a significant contributor, chipping in with resources, the national governments still need to bridge a gap of USD 600 billion to match private sector investments.
Understand The Key Trends Shaping This Market
Government initiatives and rising oil production are driving the GCC freight market, led by Saudi Arabia
- Qatar's freight and logistics market, valued at USD 2.17 billion in 2022, is projected to reach USD 3.19 billion by 2029. In 2019, Qatar's ports, including Hamad Port, Doha Port, and Ruwais Port, witnessed a surge in cargo handling, with a total of 1,828 ships. This growth bolstered the nation's maritime industry. The transshipment volumes in Qatar's maritime industry climbed in 2022, with its ports handling approximately 116,000 TEUs and over 142,000 tons of general cargo. Qatar Airways witnessed a notable uptick, reporting a 25% rise in cargo, equating to 3.3 million tons, and played a crucial role in transporting over 600 million doses of COVID-19 vaccines.
- The burgeoning e-commerce and pharmaceutical industries primarily propel the UAE freight and logistics landscape. The e-commerce industry raked in a revenue of approximately USD 11.49 billion in 2021. The country's emphasis on economic diversification has fostered a favorable environment for e-commerce, leading to rapid growth and innovation. The e-commerce industry is projected to generate a revenue of around USD 19.83 billion, with the user base anticipated to reach 6.9 million by 2027.
- Saudi Arabia, a dominant player in the global oil market, leads oil production in the Arab region. As the largest oil-producing member of OPEC and the world's second-largest producer after the United States, Saudi Arabia's transport and logistics sector is set to contribute 10% to the nation's GDP by 2030, up from 6% in 2021, driven by the country's new strategic initiatives. The Saudi Arabian freight and logistics market is projected to amass a revenue of USD 16.52 billion by 2029.
