United Arab Emirates (UAE) Third-Party Logistics (3PL) Market Size and Share

UAE Third-Party Logistics Market (2025 - 2030)
View Global Report

United Arab Emirates (UAE) Third-Party Logistics (3PL) Market Analysis by Mordor Intelligence

The United Arab Emirates Third-Party Logistics Market size is estimated at USD 5.10 billion in 2025, and is expected to reach USD 8.02 billion by 2030, at a CAGR of 9.48% during the forecast period (2025-2030).

Growth in UAE logistics industry 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 third-party logistics 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 third-party logistics 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 industry share in 2024; hybrid models are expected to post a 9.7% CAGR through 2030. 
  • By geography, Dubai captured 68% of the UAE third-party logistics industry size in 2024, but the Rest of UAE is projected to register an 11.5% CAGR to 2030. 

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 and contributing to the overall growth in UAE logistics industry. 

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 industry displays a clear shift toward hybrid offerings that pool transport, storage, and added-value steps.

none

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

Get Detailed Market Forecasts at the Most Granular Levels
Download PDF

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. 

none

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

Get Detailed Market Forecasts at the Most Granular Levels
Download PDF

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] 

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 third-party logistics industry 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 logistics 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 industry 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 third-party logistics 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

  1. DHL Supply Chain & Global Forwarding

  2. Aramex PJSC

  3. Kuehne + Nagel International AG

  4. CEVA Logistics

  5. FedEx Logistics

  6. *Disclaimer: Major Players sorted in no particular order
UAE 3PL Market - competitive landscape
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.

Table of Contents for United Arab Emirates (UAE) Third-Party Logistics (3PL) Industry Report

1. Introduction

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. Research Methodology

3. Executive Summary

4. Market Landscape

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 E-commerce-Driven Omni-Channel Fulfilment Demands Centered in UAE
    • 4.2.2 Rise of Free-Zone Manufacturing Clusters Requiring Integrated Logistics Solutions
    • 4.2.3 Pharma Cold-Chain Accreditation Push by MoHAP and Dubai Health Authority
    • 4.2.4 Smart Customs Initiatives (Dubai Customs’ Blockchain and UAE PASS Integration) Shortening Clearance Windows
    • 4.2.5 GCC Rail Phase-1 Completion Enabling Seamless Inter-Gulf Multimodal Corridors
  • 4.3 Market Restraints
    • 4.3.1 Driver Availability Caps Under New UAE Labour Reforms
    • 4.3.2 Air-freight Capacity Cyclicality Tied to Oil-Price Volatility
    • 4.3.3 Rising Warehouse Rents in JAFZA and Dubai South Compressing 3PL Margins
  • 4.4 Value / Supply-Chain Analysis
  • 4.5 Regulatory and Technological Outlook
  • 4.6 Porter’s Five Forces
    • 4.6.1 Threat of New Entrants
    • 4.6.2 Bargaining Power of Buyers
    • 4.6.3 Bargaining Power of Suppliers
    • 4.6.4 Threat of Substitutes
    • 4.6.5 Competitive Rivalry
  • 4.7 General Trends in Warehousing, CEP, Last-Mile, Cold-Chain
  • 4.8 Insights into E-commerce Business
  • 4.9 Technological Developments in Logistics
  • 4.10 Impact of Geopolitical Events on the Market

5. Market Size and Growth Forecasts (Value, AED billion)

  • 5.1 By Service
    • 5.1.1 Domestic Transportation Management
    • 5.1.1.1 Road
    • 5.1.1.2 Air
    • 5.1.1.3 More
    • 5.1.2 International Transportation Management
    • 5.1.2.1 Road
    • 5.1.2.2 Air
    • 5.1.2.3 Sea
    • 5.1.2.4 Multimodal / Intermodal
    • 5.1.3 Value-Added Warehousing and Distribution (VAWD)
  • 5.2 By End-User Industry
    • 5.2.1 Automotive
    • 5.2.2 Energy and Utilities
    • 5.2.3 Manufacturing
    • 5.2.4 Life Sciences and Healthcare
    • 5.2.5 Technology and Electronics
    • 5.2.6 Retail and E-commerce
    • 5.2.7 Consumer Goods and FMCG
    • 5.2.8 Food and Beverages
    • 5.2.9 More
  • 5.3 By Logistics Model
    • 5.3.1 Asset-Light (Management-Based)
    • 5.3.2 Asset-Heavy (Own Fleet and Warehouses)
    • 5.3.3 Hybrid
  • 5.4 By Emirate
    • 5.4.1 Dubai
    • 5.4.2 Abu Dhabi
    • 5.4.3 Sharjah
    • 5.4.4 Rest of UAE

6. Competitive Landscape

  • 6.1 Strategic Moves (MandA, JVs, Tech Partnerships)
  • 6.2 Market Share Analysis
  • 6.3 Company Profiles {(includes Global-level Overview, Market-level Overview, Core Segments, Financials, Strategic Information, Market Rank/Share, Products and Services, Recent Developments)}
    • 6.3.1 DHL Supply Chain and Global Forwarding
    • 6.3.2 Aramex PJSC
    • 6.3.3 Kuehne + Nagel International AG
    • 6.3.4 CEVA Logistics
    • 6.3.5 FedEx Logistics
    • 6.3.6 UPS Supply Chain Solutions
    • 6.3.7 Hellmann Worldwide Logistics
    • 6.3.8 DSV A/S
    • 6.3.9 Geodis
    • 6.3.10 RAK Logistics
    • 6.3.11 The Kanoo Group (Kanoo Logistics)
    • 6.3.12 Emirates Logistics LLC
    • 6.3.13 Al-Futtaim Logistics
    • 6.3.14 Tristar Transport LLC
    • 6.3.15 Yusen Logistics
    • 6.3.16 GWC Logistics
    • 6.3.17 Mohebi Logistics
    • 6.3.18 RSA Global
    • 6.3.19 GAC Dubai (Gulf Agency Company)
    • 6.3.20 Transworld Group

7. Market Opportunities and Future Outlook

You Can Purchase Parts Of This Report. Check Out Prices For Specific Sections
Get Price Break-up Now

Research Methodology Framework and Report Scope

Market Definitions and Key Coverage

Our study treats the United Arab Emirates third-party logistics market as every fee-based domestic or international movement, warehousing, and related value-added activity that a shipper outsources to an independent 3PL, whether asset-heavy, asset-light, or hybrid in model. Transaction values are recorded at the point the service is billed to the shipper, expressed in constant 2024 USD.

(Scope exclusion: turnkey facility management, last-mile services performed by in-house captive fleets, and pure digital freight marketplaces remain outside this boundary.)

Segmentation Overview
  • 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

Detailed Research Methodology and Data Validation

Primary Research

Semi-structured interviews with managers at freight forwarders, free-zone warehouse operators, e-commerce merchants, and procurement heads across Dubai, Abu Dhabi, and Sharjah refined service mix ratios, contract pricing progression, and asset utilization. Follow-up surveys with pharma and FMCG shippers gauged cold-chain uptake and last-mile outsourcing intent, adding firsthand consensus to desk findings.

Desk Research

Mordor analysts compiled macro and trade indicators from tier-one public sources such as UAE Federal Competitiveness & Statistics Centre, Dubai Customs TEU tables, Central Bank monthly exchange series, IATA freight-ton-kilometer dashboards, and Emirates NBD PMI prints, which clarify demand pulses across manufacturing and retail. Company filings, port operator presentations, and association notes (FIATA, TIACA) helped benchmark 3PL contract wins and warehouse stock. Shipment splits and operator financials were cross-checked on D&B Hoovers and Volza. The sources quoted here illustrate the spectrum; many others informed data capture, validation, and gap checks.

Market-Sizing & Forecasting

A top-down construct starts with Dubai Customs and Abu Dhabi Ports cargo volumes, e-commerce parcel counts, and free-zone warehouse permits, which are then apportioned by average logistics spend coefficients from shipper interviews. Select bottom-up checks, sampled 3PL revenue roll-ups and lane-level rate cards, validate and adjust totals. Key variables steering the model include container throughput growth, cross-border e-commerce GMV, fuel-adjusted road freight tariffs, warehouse rent indices, regulatory incentives under the UAE Logistics Strategy 2030, and project timetables for the GCC rail link. Forecasts are generated through multivariate regression blended with scenario analysis, with elasticities derived from five-year historical relationships and expert sentiment guiding the base case. Where operator data are partial, gaps are bridged using peer-derived service mix averages.

Data Validation & Update Cycle

Outputs pass variance and anomaly screens, after which a senior analyst reviews assumptions against external benchmarks. We refresh every twelve months, with interim updates triggered by currency swings above 5%, material policy shifts, or significant M&A, ensuring clients receive the latest calibrated view before release.

Why Mordor's UAE Third Party Logistics Baseline Commands Reliability

Published estimates often vary because publishers pick different service baskets, base years, or price assumptions.

Key gap drivers we observe include inclusion of courier express parcel and 4PL revenues, omission of value-added warehousing, differing currency conversion dates, and uneven refresh cadences.

Benchmark comparison

Market Size Anonymized source Primary gap driver
USD 5.10 B (2025) Mordor Intelligence
USD 6.56 B (2024) Regional Consultancy A Adds 4PL and CEP turnover, earlier fiscal close
USD 5.78 B (2024) Trade Journal B Excludes warehousing income, relies on press releases
USD 7.50 B (2024) Global Consultancy C Converts at spot FX, counts freight forwarding contracts

The comparison shows how scope breadth, pricing treatments, and update timing inflate or deflate totals. By anchoring estimates to clearly defined services, audited trade volumes, and an annual refresh discipline, Mordor Intelligence offers decision-makers a balanced, transparent baseline they can trace back to measurable UAE-specific drivers.

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 Third-Party Logistics Industry?

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.

Page last updated on:

United Arab Emirates (UAE) Third-Party Logistics (3PL) Report Snapshots