Market Trends of United Arab Emirates (UAE) Third-Party Logistics (3PL) Industry
E-commerce Rise Supporting the Market
- In 2022, the UAE will have the fastest-growing e-commerce industry in the world as global online sales continue to experience a meteoric rise. The Philippines tops Statista's list of the top 10 countries where people are most likely to buy on their mobile devices, with 70% of all e-commerce transactions taking place on a mobile device.
- South Korea and Argentina are the second and third fastest-growing e-commerce markets in the world, respectively, after the United Arab Emirates. South Korea is ranked third with 66 percent, closely followed by China in second place with 69 percent.
- It is obvious why the UAE ranks first in the analysis, given that its 1,448,471,400-strong online population is predicted to increase its e-commerce spending by an extra 22.32%. E-commerce spending in the nation has grown by 1.10% since just last year, and by 2022, it will account for 7% of all retail spending. The second and third fastest-expanding e-commerce markets for 2022 are South Korea and Argentina, respectively.
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Growth of the Manufacturing Sector Driving the Market
- A top official highlighted the accomplishments of the Ministry of Industry and Advanced Technology, stating that the industrial sector of the UAE contributed over AED 180 billion (USD 49 billion) to the country's national GDP, with exports reaching AED 174 billion (USD 47.37 billion) in 2022 (MoIAT). Over AED 180 billion is expected to have been contributed by the industrial sector.
- In 2022, MoIAT granted 263 new licenses for industrial production, marking a 20% increase over 2021. Moreover, the national In-Country Value (ICV) program successfully reinvested AED 53 billion, reflecting a 25% increase, into the economy.
- To evaluate their compatibility with strategic sectors and estimate import volumes, MoIAT conducted a feasibility study on 47 products slated for local manufacturing. The findings were presented on the Make It in the Emirates platform to attract potential investors in high-priority industrial sectors. Additionally, the platform included several compelling statements offering incentives for manufacturers.
