Market Size of United Arab Emirates (UAE) Third-Party Logistics (3PL) Industry
| Study Period | 2020-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 6.56 Billion |
| Market Size (2029) | USD 9.13 Billion |
| CAGR (2024 - 2029) | 6.84 % |
| Market Concentration | Medium |
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*Disclaimer: Major Players sorted in no particular order |
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UAE 3PL Market Analysis
The United Arab Emirates Third-Party Logistics Market size is estimated at USD 6.56 billion in 2024, and is expected to reach USD 9.13 billion by 2029, growing at a CAGR of 6.84% during the forecast period (2024-2029).
- The UAE government actively bolsters the 3PL and logistics market by implementing diverse initiatives, policies, and investment incentives. These measures entice stakeholders to invest in the country, fostering an expansion of logistics services for consumers. E-commerce has notably surged, transforming the market landscape. The increased volume of sales through online channels has prompted local vendors, retailers, wholesalers, and manufacturing units to focus on digital platforms to augment their sales.
- The integration of automated material handling equipment and the surging popularity of GPS-enabled and RFID-based devices amplify the demand for logistic services. The government's substantial investments in revamping seaports, distribution centers, free zones, and freight terminals significantly stimulate this demand.
- E-commerce stands out as a primary driver for the Third-Party Logistics (3PL) Market in the UAE. Statista data indicates a 1.10% increase in the UAE's e-commerce spending as a percentage of GDP since 2021, with an expected share of 7.0% of total retail spending in the current year. This shift has fundamentally reshaped the country's commercial landscape. Concurrently, the increasing integration of advanced technologies like AI, IoT, and blockchain in logistics fuels market growth.
- In alignment with this trend, the UAE government employs various strategies to support the 3PL and logistics market. For instance, the Dubai Free Zones Council introduced the "Digital Silk Road" program, fortifying international e-commerce and solidifying the emirate's role as an industry hub. Moreover, legislative measures safeguard e-commerce platforms, promote secure online transactions, and protect consumer rights, cultivating greater trust in online shopping and propelling the industry's expansion.
