Middle East And Africa Freight And Logistics Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Middle East And Africa Freight And Logistics Market Trends and Insights

E-commerce boom and cross-border retail

Cross-border e-commerce lifts last-mile shipment frequency, with domestic CEP covering 67.88% of traffic while international CEP advances at a 5.77% CAGR through 2030. Logistics providers are scaling automated sortation hubs and multi-carrier APIs that link Jebel Ali Port to Al Maktoum International Airport. Gulf operators deploy AI routing and collaborate with local universities to fill digital talent gaps. Omnichannel retailers demand integrated fulfillment that merges warehousing, click-and-collect, and door delivery, shifting volume toward express networks.

Mega-investments in multimodal logistics infrastructure

Saudi Arabia earmarked USD 133.3 billion for ports, airports, and railways through 2030, including Port of NEOM’s first fully automated cranes slated for 2026 launch^{[1]Reem Walid, “How Saudi Arabia is reshaping transportation infrastructure amid climate change challenges,” Arab News, arabnews.com}. DP World’s USD 2.5 billion program and record USD 20 billion 2024 revenue signal deep private capital engagement. Automation and renewable energy integration compress dwell times and improve cost curves, reshaping transshipment competitiveness.

Cold-chain demand for pharma and perishables

Temperature-controlled warehousing grows at 5.69% CAGR, outstripping dry storage. Kuehne + Nagel strengthened South-South perishables lanes by acquiring Morgan Cargo, which moves 40,000 tons of air freight and 20,000 TEU of sea freight per year^{[2]Peter Shaw-Smith, “Kuehne+Nagel acquires South African freight forwarder,” Seatrade Maritime News, seatrade-maritime.com}. GDP-compliant facilities, IoT sensors, and solar-powered chillers align with pharma guidelines and food security priorities across Africa and the Gulf.

Rapid adoption of digital freight platforms and real-time visibility tools

Dubai Customs’ blockchain pilot and Africa’s TWIN trade platform support paperless clearances^{[3]Dubai Customs, “Dubai Customs rolls out blockchain-enabled cross-border platform,” dubaicustoms.gov.ae}. Kuehne + Nagel’s Seaexplorer maps vessel positions and port congestion in real time, supplying alternate routings during Bab el Mandeb disruptions. Predictive analytics and generative AI improve forecasting accuracy and cut administrative costs, rewarding asset-light digital intermediaries.

Uneven road, rail, and port infrastructure

Infrastructure gaps raise logistics costs for landlocked African economies relying on coastal gateways. The African Development Bank cites road density disparities and underfunded common-user marine assets as persistent bottlenecks^{[4]African Development Bank, “State of Africa’s Infrastructure Report 2025,” afdb.org}. PPP corridors and toll finance frameworks attract limited private capital outside mining routes. Concentrated capacity in a handful of hubs heightens vulnerability to weather or labor stoppages, stalling hinterland market penetration.

Red Sea/Suez chokepoint disruptions

Despite January 2025 cease-fire progress, Bab el Mandeb traffic stayed depressed, and insurers kept risk surcharges on transits. Diversions around the Cape of Good Hope raised global TEU-mile demand 21% in 2024, inflating rates and stretching vessel supply. Lines deploy sea-air mode shifts and inventory buffers, but security uncertainty still clouds long-range capacity planning.

Segment Analysis

By End-User Industry: Manufacturing drives future growth

Wholesale and retail trade contributed 34.39% of 2024 revenue, while manufacturing posts the fastest 5.73% CAGR through 2030 as localization and industrial parks proliferate. Oil, gas, and mining logistics remain sizable, supported by commodity flows and energy security spending. Construction logistics taps infrastructure mega-projects, and agri-food shipments expand under food-security strategies.

Nigeria’s USD 20 billion Ogidigben industrial park underscores demand for specialized heavy-lift and project cargo services. Just-in-time production requires synchronized inbound material flows, elevating demand for real-time tracking and predictive inventory analytics

Note: Segment shares of all individual segments available upon report purchase

By Logistics Function: Express services drive market evolution

Freight transport retained 59.66% of the Middle East and Africa freight and logistics market in 2024, while courier, express, and parcel leads growth at 5.73% CAGR to 2030. Road-based bulk remains foundational, yet time-definite parcels capture e-commerce tailwinds. Freight forwarding and warehousing post steady gains, and temperature-controlled storage earns premium margins. Technology-driven value-added services under “other” activities scale quickly, feeding demand for end-to-end digital orchestration.

International integrators pledge nine-figure capex for hubs, whereas Aramex leverages ADQ backing to consolidate regional share. Robotics and AI inventory tools widen productivity differentials in Gulf warehouses, creating platforms that fuse parcel delivery, cross-dock, and forwarding under a single interface.

By Courier, Express, and Parcel: International growth outpaces domestic

Domestic CEP claimed a 67.88% share in 2024, yet international CEP grows at a 5.77% CAGR (2025-2030) as cross-border e-commerce and B2B emergency shipments rise. Mature domestic networks in the UAE and Saudi Arabia steer operators to build out pan-GCC and intra-African lanes. Customs complexity grants an edge to providers with automated clearance systems, which pre-file manifests and cut border dwell.

Network expansion needs dedicated gateways, bonded corridors, and regulatory partnerships. Successful CEP firms blend domestic market defense with cross-border scale, requiring heavy investment in compliance teams and digital documentation.

By Warehousing and Storage: Temperature control commands premium growth

Non-temperature-controlled sheds held 87.55% share in 2024, yet cold storage rises 5.69% CAGR (2025-2030) as pharma and perishables drive specialist demand. Renewable-powered chillers and IoT monitoring help operators meet GDP compliance and ESG targets. Automated storage and retrieval systems cut pick errors and labor costs across both facility types.

GCC governments bundle land, utilities, and customs incentives in logistics zones to lure third-party providers. Fulfillment centers evolve from static warehouses into micro-distribution nodes that combine storage, order processing, and last-mile dispatch under one roof.

By Freight Transport: Maritime routes gain despite road dominance

Road transport still held a 41.29% share in 2024, but sea and inland waterways registered a 5.65% CAGR (2025-2030), from expanded berths, deepwater drafts, and greenfield routes. Air freight serves critical spares and high-tech cargo; rail remains nascent outside South African and Moroccan grids. Pipeline logistics underpins energy flows, anchoring specialized midstream revenues.

DP World’s takeover of bp’s Southern Africa trucking arm demonstrates multimodal integration that links ports to inland depots. Performance-based truck combinations in mining reduce trips by 54% and fuel burn, while port-zone autonomous truck pilots test electric drayage in controlled environments.

Note: Segment shares of all individual segments available upon report purchase

By Freight Forwarding: Maritime services lead multimodal integration

Sea and inland waterways commanded a 53.26% share in 2024 and drive forwarding growth at a 5.80% CAGR through 2030, reflecting port modernization and alternative routing post-Red Sea disruptions. Air forwarding retains high-value niches, while road-rail forwarding supports mineral and industrial corridors. The Middle East and Africa freight and logistics market size for maritime forwarding is projected to widen as port throughput accelerates.

CEVA’s joint venture with Almajdouie secures Saudi regulatory know-how, while Kuehne + Nagel’s Morgan Cargo deal unlocks perishables pockets in East and Southern Africa. Digital marketplaces with real-time visibility, automated bills of lading, and predictive ETAs tighten customer retention.

Geography Analysis

Saudi Arabia held 6.90% of the Middle East and Africa freight and logistics market in 2024, anchored by Vision 2030 logistics clusters and USD 133.3 billion in multimodal capex. Automated cranes at the Port of NEOM and rail extensions cut dwell times and improve hinterland reach. Green hydrogen projects add specialized bulk movements and create export workflows that favor integrated supply-chain partners.

The United Arab Emirates matches Saudi growth at a 5.75% CAGR (2025-2030), leveraging Jebel Ali’s scale, Al Maktoum’s belly-hold capacity, and free-zone tax incentives. UAE entities have become Africa’s top investors, funneling capital into port concessions in Angola, Congo, and Egypt, thereby pulling African volumes back through Gulf hubs. Advanced digital trade platforms and favorable customs reforms accelerate clearance times, cementing Dubai’s role as a transshipment and fulfillment pivot.