Market Overview
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 5.10 Billion |
| Market Size (2030) | USD 8.02 Billion |
| Growth Rate (2025 - 2030) | 9.48% 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. |
|
United Arab Emirates (UAE) Third-Party Logistics (3PL) Market Analysis by Mordor Intelligence
The UAE 3PL market size is valued at USD 5.10 billion in 2025, and forecasts indicate it will reach USD 8.02 billion by 2030, advancing at a 9.48% CAGR. Growth is propelled by the country’s role as a gateway between Europe, Asia, and Africa, sustained infrastructure spending, and policies that favor trade. Demand for integrated logistics platforms is climbing as omni-channel retail, pharmaceutical cold chains, and free-zone manufacturing all scale. New rail links and expanded airport capacity are tightening transit windows, while blockchain-enabled customs processes are shortening clearance cycles, raising service expectations across the UAE 3PL market. Competitive intensity remains moderate because technology investments, asset strategy, and sector specialization increasingly determine provider differentiation, even as warehouse rents test profitability for late entrants.
Key Report Takeaways
- By service type, domestic transportation management led with 44% share of the UAE 3PL market size in 2024, while value-added warehousing and distribution is forecast to expand at a 10.0% CAGR to 2030.
- By end-user industry, energy & utilities commanded 26% of the UAE 3PL market share in 2024, whereas life sciences & healthcare is projected to grow at a 12.8% CAGR through 2030.
- By logistics model, asset-light providers held 41% of the UAE 3PL market share in 2024; hybrid models are expected to post a 9.7% CAGR through 2030.
- By geography, Dubai captured 68% the UAE 3PL market size in 2024, but the Rest of UAE is projected to register an 11.5% CAGR to 2030.
United Arab Emirates (UAE) Third-Party Logistics (3PL) Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Omni-channel e-commerce fulfillment | +2.1% | Dubai, spillover nationwide | Medium term (2-4 years) |
| Free-zone manufacturing clusters | +1.5% | Dubai, Abu Dhabi | Medium term (2-4 years) |
| Pharma cold-chain accreditation | +1.2% | Dubai, Abu Dhabi | Short term (≤2 years) |
| Smart customs initiatives | +1.8% | Dubai, national | Short term (≤2 years) |
| GCC rail completion | +1.9% | National, regional | Long term (≥4 years) |
Source: Mordor Intelligence
Understand The Key Trends Shaping This Market
Download PDF
E-commerce-Driven Omni-Channel Fulfillment
Demand for next-day delivery is forcing 3PL providers to blend inventory management, pick-pack, and last-mile transport under one roof. Kuehne + Nagel’s 23,000 sqm facility in EZDubai, due online in 2025, illustrates how bonded corridors reduce customs dwell times for cross-border parcels[1]Staff Report, “Kuehne+Nagel Breaks Ground on 23,000-sqm EZDubai Fulfilment Centre,” Asia Cargo News, asiacargonews.com. Comparable investments by Expeditors and DP World have lifted specialized floor space around Dubai South, strengthening the UAE 3PL market’s position as a regional order-fulfillment hub.
Free-Zone Manufacturing Clusters
National Industries Park and similar zones give exporters direct port and air access, trimming handling costs. Aldar Properties and DP World plan a 1.55 million sq ft Grade A park in NIP that targets 3PL, retail, and e-commerce tenants, signaling deeper collaboration between real-estate owners and logistics firms. As production reshoring advances, the UAE 3PL market gains from higher volumes of inbound raw materials and outbound finished goods.
Pharma Cold-Chain Accreditation Push
Stricter temperature mapping and traceability rules elevate demand for GDP-compliant storage and transport. RSA Cold Chain’s eight-chamber centre in JAFZA can handle 40,000 pallets down to −25 °C, meeting rigorous healthcare standards. The Dubai Health Authority’s investment plan for hospitals and research facilities intensifies the need for validated distribution, raising service premiums across the UAE 3PL market.
Smart Customs Initiatives
Dubai Customs’ blockchain ledger enables data sharing among shippers, carriers, and regulators, cutting repetitive documentation[2]Staff Report, “Dubai Customs Launches Blockchain Platform to Accelerate Cargo Clearance,” Gulf News, gulfnews.com. Real-time cargo status improves dwell time predictability, allowing 3PL providers to rotate assets faster and enhance customer contracts.
Restraint Impact Table
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Driver availability caps | -1.3% | National | Medium term (2-4 years) |
| Air-freight capacity cyclicality | -0.8% | Dubai, Abu Dhabi | Short term (≤2 years) |
| Rising warehouse rents | -1.7% | Dubai South, JAFZA | Medium term (2-4 years) |
Source: Mordor Intelligence
Driver Availability Caps Under Labour Reforms
Federal Decree-Law 36 of 2023 tightens competition rules and raises transparency, indirectly constraining foreign workforce inflows. Fewer qualified drivers inflate hire costs, urging logistics firms to explore autonomous delivery pilots and AI-based routing. Asset-heavy fleets in the UAE 3PL market face margin pressure until alternative labour channels stabilize.
Rising Warehouse Rents Compressing Margins
Industrial rents rose 14.3% in Dubai and 5.1% in Abu Dhabi during Q1 2024. Prime districts such as JAFZA now command premiums that test small operators. Long-term leases and owned facilities provide a buffer, but newcomers to the UAE 3PL market may postpone expansion or enter joint ventures to mitigate cost hurdles.
Segment Analysis
By Service Type: Value-Added Services Pivot Gains Momentum
Value-added warehousing and distribution generated the fastest revenue expansion in 2024 and is forecast to post a 10.0% CAGR to 2030. Domestic transportation management still accounts for a 44% slice of the UAE 3PL market size, reflecting robust e-commerce last-mile volumes. Multimodal routing has improved since the 900 km Etihad Rail network connected all emirates, giving providers greater scheduling certainty.
Greater demand for customs-bonded storage, light assembly, and returns processing shows importers prefer one-stop outsourcing. DP World’s temperature-controlled facilities, integrated with visibility software, illustrate how specialized value-added services win contracts in healthcare and fresh-food segments. As more shippers award bundled agreements, the UAE 3PL market displays a clear shift toward hybrid offerings that pool transport, storage, and added-value steps.
Note: Segment shares of all individual segments available upon report purchase
By End-User Industry: Healthcare Ascends
Energy and utilities held 26% of the UAE 3PL market share in 2024, aided by ADNOC Logistics and Services adding offshore vessels and jack-up barges. Yet life sciences and healthcare are projected to climb 12.8% annually through 2030, driven by vaccine, biologics, and clinical-trial flows requiring mapped cold chains. Retail and e-commerce follow close behind as consumer spending migrates online, reinforcing the need for rapid-fulfillment nodes.
The government’s Operation 300 Billion targets higher manufacturing output, ultimately widening industrial cargo streams. Electronics and technology producers also benefit from the Digital Economy Strategy, which seeks to double digital GDP contribution, expanding component imports and outbound finished products that flow through the UAE 3PL industry.
Note: Segment shares of all individual segments available upon report purchase
By Logistics Model: Hybrid Strategies Rise
Asset-light management providers command 41% of current revenue because they scale quickly without heavy capex. Hybrid operators, however, are forecast to log a 11.7% CAGR through 2030 as they add selective warehousing or temperature-controlled assets to protect service levels. DHL Global Forwarding’s takeover of Danzas AEI Emirates, adding more than 20 UAE facilities, exemplifies this pivot toward partial ownership.[3]Press Release, “DHL Global Forwarding Completes Acquisition of Danzas AEI Emirates,” DHL Global Forwarding, dhl.com
Asset-heavy ownership remains relevant where GDP compliance or high-value cargoes require full control. RSA Cold Chain’s new centre underscores the necessity of owning specialized infrastructure in the UAE 3PL market for pharmaceutical consignments that cannot tolerate temperature excursions.
Geography Analysis
Dubai generated 68% of 2024 revenue, anchored by Jebel Ali Port, Al Maktoum International Airport, and bonded e-commerce corridors. A USD 35 billion terminal expansion will eventually push capacity to 12 million tons of cargo and 150 million passengers yearly, cementing Dubai’s dominance. EZDubai and other dedicated logistics zones keep attracting omnichannel brands that prioritize speed to consumer.
Abu Dhabi is diversifying rapidly on the back of energy, healthcare, and advanced manufacturing. Industrial rental registrations climbed 9.0% year-on-year in Q1 2024, and Etihad Rail’s joint framework with ADNOC accelerates bulk and project cargo transfers between Al Dhannah and Khalifa Port. Healthcare regulators have issued new guidelines for critical-care transit, prompting niche 3PL investments in compliant ambulatory fleets.
The Rest of UAE—including Sharjah, Ajman, Ras Al Khaimah, Fujairah, and Umm Al Quwain—is projected to expand its UAE 3PL market size at an 11.5% CAGR to 2030. Lower land costs and the nationwide rail network attract shippers seeking cost-effective consolidation points. Projects such as the USD 3.5 billion Al Mafraq-Al Ghuwaifat highway improve road haulage fluidity, supporting regional cross-dock facilities that feed Dubai ports or Saudi gateways.
Competitive Landscape
The UAE 3PL market features a moderately fragmented roster where global integrators, regional champions, and niche specialists coexist. Acquisitions continue to shape positioning: DHL’s absorption of Danzas AEI Emirates added transport expertise and nearly 1,100 staff, widening DHL’s footprint in freight forwarding. Kuehne + Nagel’s new e-commerce warehouse signals the ongoing arms race for technology-enabled omnichannel capacity.
Local conglomerates also influence sector structure. ADQ’s exploration of an Aramex stake illustrates sovereign-backed interest in consolidating last-mile assets, mirroring regional logistics integration strategies. Meanwhile, DP World surpassed 100 million TEU capacity in 2025, proving the leverage a terminal operator wields when bundled with inland logistics.
Technology remains a defining battleground. Aramex’s 18% revenue jump in Q3 2024 stemmed partly from data-driven route optimization that cut delivery windows in urban districts. Blockchain customs clearance, warehouse robotics, and predictive visibility tools now influence contract renewals more than price alone. For mid-tier UAE 3PL market participants, niche specialization—cold-chain pharmaceuticals, project cargo, or reverse logistics—offers insulation against price compression triggered by global incumbents.
United Arab Emirates (UAE) Third-Party Logistics (3PL) Industry Leaders
-
DHL Supply Chain & Global Forwarding
-
Aramex PJSC
-
Kuehne + Nagel International AG
-
CEVA Logistics
-
FedEx Logistics
- *Disclaimer: Major Players sorted in no particular order
Need More Details on Market Players and Competitors?
Download PDF
Recent Industry Developments
- March 2025: Abu Dhabi sovereign wealth fund ADQ acquired 58% stake in Aramex via the tender offer from Q Logistics
- January 2025: Dubai South and Expeditors International inaugurated a 23,200 sqm logistics facility in the Logistics District, with operations scheduled for Feb 2025.
- January 2025: DP World confirmed throughput capability reached 100 million TEUs.
- June 2024: Kuehne + Nagel began building a 23,000 sqm e-commerce fulfilment centre in EZDubai.
United Arab Emirates (UAE) Third-Party Logistics (3PL) Market Report Scope
A 3PL (third-party logistics) provider provides outsourced logistics services, which include the management of one or more aspects of procurement and fulfillment activities.
The United Arab Emirates third-party logistics market is segmented by type (domestic transportation management, international transportation management, warehousing and distribution, and value-added services) and by end-user (automotive, chemicals, FMCG, retail, fashion & lifestyle, and other end users).
The report offers market size and forecasts for the UAE third-party logistics market in value (USD) for all the above segments.
| By Service | Domestic Transportation Management | Road | |
| Air | |||
| More | |||
| International Transportation Management | Road | ||
| Air | |||
| Sea | |||
| Multimodal / Intermodal | |||
| Value-Added Warehousing and Distribution (VAWD) | |||
| By End-User Industry | Automotive | ||
| Energy and Utilities | |||
| Manufacturing | |||
| Life Sciences and Healthcare | |||
| Technology and Electronics | |||
| Retail and E-commerce | |||
| Consumer Goods and FMCG | |||
| Food and Beverages | |||
| More | |||
| By Logistics Model | Asset-Light (Management-Based) | ||
| Asset-Heavy (Own Fleet and Warehouses) | |||
| Hybrid | |||
| By Emirate | Dubai | ||
| Abu Dhabi | |||
| Sharjah | |||
| Rest of UAE | |||
By Service
| Domestic Transportation Management | Road |
| Air | |
| More | |
| International Transportation Management | Road |
| Air | |
| Sea | |
| Multimodal / Intermodal | |
| Value-Added Warehousing and Distribution (VAWD) |
By End-User Industry
| Automotive |
| Energy and Utilities |
| Manufacturing |
| Life Sciences and Healthcare |
| Technology and Electronics |
| Retail and E-commerce |
| Consumer Goods and FMCG |
| Food and Beverages |
| More |
By Logistics Model
| Asset-Light (Management-Based) |
| Asset-Heavy (Own Fleet and Warehouses) |
| Hybrid |
By Emirate
| Dubai |
| Abu Dhabi |
| Sharjah |
| Rest of UAE |
Need A Different Region or Segment?
Customize Now
Key Questions Answered in the Report
What is the current UAE 3PL market size?
The UAE 3PL market is valued at USD 5.10 billion in 2025 and is projected to reach USD 8.02 billion by 2030.
Which segment is expanding fastest within the UAE 3PL market?
Value-added warehousing and distribution is set to grow at a 10.0% CAGR, outpacing other service types through 2030.
Why is life sciences logistics gaining momentum?
Stringent cold-chain regulations, new healthcare investments, and GDP-compliant storage demand are driving a 12.8% CAGR in the life sciences & healthcare segment.
How will Etihad Rail influence logistics costs?
The 900 km network enables direct rail links between ports and industrial clusters, reducing road congestion and optimizing multimodal routes for bulk and containerized cargo.
