United Arab Emirates Contract Logistics Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The United Arab Emirates Contract Logistics Market is segmented By Type (Outsourced and Insourced), By End User (Manufacturing and Automotive, Consumer Goods and Retail, High-Tech, Healthcare, Pharmaceuticals, Chemicals, Petro Chemicals and Other End Users). The report offers the United Arab Emirates Contract Logistics market size and forecasts in values (USD billion) for all the above segments.

UAE Contract Logistics Market Size

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UAE Contract Logistics Market  Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 6.00 %
Market Concentration Medium

Major Players

UAE Contract Logistics Market  Major Players

*Disclaimer: Major Players sorted in no particular order

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UAE Contract Logistics Market Analysis

The United Arab Emirates (UAE) Contract Logistics logistics market was estimated at USD 1950 Million in 2022, and it is projected to grow at a CAGR of 6% during the forecast period. The need for logistics services has significantly increased as a result of the fast-paced modernization and expansion of the United Arab Emirates economy.

  • The United Arab Emirates has concentrated on enhancing its trade agreements to increase the degree of trade and economic cooperation through the laws in effect in each nation, diversify the economy's sources, and promote sustainable growth.
  • Over 1,500 American companies operating across the Middle East, Africa, Europe, and Asia have their worldwide headquarters in the United Arab Emirates (UAE), which has been the leading market for American exports to the Middle East and Africa for the past 12 years.
  • The UAE has a vibrant economy that is diversifying as it works to become a knowledge economy during the coming ten years. The UAE is a desirable market for American exporters due to its openness to international trade and advantageous location as a gateway to the region, which opens up commercial prospects.
  • The pandemic delivered the UAE economy a double blow, greatly harming the non-oil sector, which was reliant on commerce, tourism, and aviation, and lowering oil prices and lowering the country's oil profits. Amid this upheaval, UAE officials are enacting major reforms to entice investment and seize first-mover advantages in several industries.
  • Governments at the national and emirate levels make significant investments to diversify and expand the economy.
  • The UAE has resources, without the structural liabilities some of its neighbours must bear, to assist it navigate the volatile oil market and other issues, with oil reserves and sovereign wealth funds estimated at over USD 1.3 trillion. The UAE wants to grow as a centre for regional commerce, logistics, travel, and technology.
  • As consumers spend more time purchasing online than in stores, the package that is delivered to their doors is their first direct connection with the brand. The movement of goods depends heavily on the transportation and distribution network, therefore logistics is important.
  • Vendors are being compelled by this to provide logistical services to e-commerce businesses. Therefore, the e-commerce sector's explosive growth will also drive up demand for logistics in the UAE.

UAE Contract Logistics Market Trends

Growth in E-commerce Driving the Market

In 2022, the UAE will have the world's fastest-growing e-commerce market as global internet sales continue their remarkable growth. The UAE is predicted to expand e-commerce spending by an additional 22.32 per cent in 2022, well on pace to surpass $8 billion in online sales value by 2025 from USD 5 billion reported in 2021. The UAE has a population of 1,448,471,400 people who are active online.

Since 2021, the UAE's e-commerce spending as a percentage of GDP has increased by 1.10 per cent, and in 2022, e-commerce is projected to represent 7.0% of all retail spending. The Philippines tops the list of the top 10 nations where people are most likely to shop 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-expanding e-commerce markets in the world, respectively, following the United Arab Emirates. South Korea is ranked third with 66 per cent, closely followed by China in second place with 69 per cent.

UAE Contract Logistics Market : Leading E-Commerce Segments in the United Arab Emirates, In Percentage, 2022

Pharmaceutical and Healthcare Spending is Driving the Market

In the region, the United Arab Emirates (UAE) is a significant market for healthcare. The UAE, one of the Middle East's most economically developed and diverse marketplaces, has a solid healthcare system supported by cutting-edge technology. The government's dedication to digital healthcare is also a major factor in the country's healthcare market's expansion.

In the upcoming years, UAE citizens' healthcare spending is expected to increase by over one-third as a result of an ageing population and an increase in the number of people with lifestyle diseases. For example, the market for machine learning (ML) and artificial intelligence (AI) tools in healthcare is predicted to reach USD 20 billion in 2023.

The healthcare industry will begin implementing new digital technology in 2023. The UAE's healthcare industry is dedicated to using state-of-the-art medical technology to provide patients with unmatched service excellence and the greatest treatment options. This will propel the nation's healthcare aspirations in addition to accelerating industry growth.

About 70% of the 3.5 per cent of the UAE's gross domestic product that goes towards health care is spent on public expenditures, with only 30% coming from the private sector.

UAE Contract Logistics Market : Usage Frequency of Digital Health Products in the United Arab Emirates, By Type, In Percentage, In 2022

UAE Contract Logistics Industry Overview

The market for contract logistics in the United Arab Emirates is incredibly fragmented. In UAE, the market for contract logistics is booming. It is frequently viewed as the greatest approach for companies to expand their logistical processes while managing the expanding cross-border flow of commodities. Cost reduction, the presence of specialized service providers, the existence of industrial zones, and the expansion of industrialization are the market's driving forces. There are many major players operating in the market like DHL, Almajdouie Logistics, Al-futtaim Logistics Mac World Logistic LLC, Aramex and many more.

UAE Contract Logistics Market Leaders

  1. Almajdouie Logistics

  2. Al-futtaim Logistics

  3. Mac World Logistic LLC

  4. RAK Logistics

  5. DHL

  6. GAC

*Disclaimer: Major Players sorted in no particular order

UAE Contract Logistics Market  Concentration
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UAE Contract Logistics Market News

  • March 2023: To improve supply chain sustainability and efficiency, Aramco and contract logistics provider DHL Supply Chain have inked a shareholders' agreement for a new procurement and logistics hub in Saudi Arabia. The joint venture will offer complete integrated procurement and supply chain services to businesses in the industrial, energy, chemical, and petrochemical sectors once it becomes operational in 2025. The new center will concentrate on the Kingdom first, with aspirations to spread throughout the MENA region. The joint venture aims to implement supply chain, transportation, and warehousing solutions that are more environmentally friendly as well as industry best practices in procurement and supply chain management.
  • November 2022: To increase its warehousing capacity in the region, DSV, a freight forwarder and top global logistics provider, launched a 14,000 square-meter logistics facility today (November 15) in Bahrain Logistics Zone in Hidd. The new facility provides options for high-value cargo as well as solutions for contract logistics with ambient, chilled, and frozen storage. It will provide Bahrain-based producers of fast-moving consumer goods with secure records management services, storage, and turnkey logistics.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Current Market Scenario

    2. 4.2 Value Chain/Supply Chain Analysis

    3. 4.3 Government Regulations and Initiatives

    4. 4.4 Technological Trends

    5. 4.5 Insights on the E-commerce Industry (Domestic and Cross-border E-commerce)

    6. 4.6 Insights on Contract Logistics in the Context of After-sales/Reverse Logistics

    7. 4.7 Brief on Different Services Provided by Contract Logistics Players (Integrated Warehousing and Transportation, Supply Chain Services, and Other Value-added Services)

    8. 4.8 Spotlight - Freight Transportation Costs/Freight Rates

    9. 4.9 Insights on Free Trade Zones in United Arab Emirates

    10. 4.10 Impact of COVID-19 on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Rise In E commerce

      2. 5.1.2 Increase Demand for Efficient and Cost Effective Supply Chain

    2. 5.2 Market Restraints

      1. 5.2.1 Limited Visible of Shipments

      2. 5.2.2 Increasing Transportation

    3. 5.3 Market Opportunities

      1. 5.3.1 Digitization in the Logistics Industry

    4. 5.4 Porter's Five Forces Analysis

      1. 5.4.1 Bargaining Power of Suppliers

      2. 5.4.2 Bargaining Power of Consumers/Buyers

      3. 5.4.3 Threat of New Entrants

      4. 5.4.4 Threat of Substitute Products

      5. 5.4.5 Intensity of Competitive Rivalry

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Type

      1. 6.1.1 Insourced

      2. 6.1.2 Outsourced

    2. 6.2 By End User

      1. 6.2.1 Manufacturing and Automotive

      2. 6.2.2 Consumer Goods and Retail

      3. 6.2.3 High-tech

      4. 6.2.4 Healthcare and Pharmaceuticals

      5. 6.2.5 Other End Users

  7. 7. COMPETITIVE LANDSCAPE

  8. 8. Overview (Market Concentration and Major Players)

  9. 9. Company Profiles

    1. 9.1 DHL

    2. 9.2 Al-futtaim Logistics

    3. 9.3 Agility Logistics Pvt. Ltd

    4. 9.4 Ceva Logistics

    5. 9.5 Yusen Logistics Co. Ltd

    6. 9.6 Hellmann Worldwide Logistics GmbH & Co. KG

    7. 9.7 DB Schenker

    8. 9.8 DSV

    9. 9.9 Maresk

    10. 9.10 J & T Express Middle East

    11. 9.11 Mac World Logistic LLC

    12. 9.12 GAC

    13. 9.13 RAK Logistics

    14. 9.14 Aramex

  10. *List Not Exhaustive
  11. 10. FUTURE OUTLOOK OF THE MARKET

  12. 11. APPENDIX

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UAE Contract Logistics Industry Segmentation

Contract logistics refers to outsourcing resource management duties to a third-party company. Contract logistics companies handle a variety of duties including supply chain development and planning, facility design, warehousing, delivery, and distribution, order processing, payment collection, inventory management, and some types of customer assistance.

The report provides a comprehensive background analysis of the United Arab Emirates Contract Logistics market, covering the current market trends, restraints, technological updates, and detailed information on various segments and the industry's competitive landscape. Additionally, the COVID-19 impact has been incorporated and considered during the study. The United Arab Emirates Contract Logistics Market is segmented By Type (Outsourced and Insourced), By End User (Manufacturing and Automotive, Consumer Goods and Retail, High-Tech, Healthcare, Pharmaceuticals, Chemicals, Petro Chemicals and Other End Users). The report offers the United Arab Emirates Contract Logistics market size and forecasts in values (USD billion) for all the above segments.

By Type
Insourced
Outsourced
By End User
Manufacturing and Automotive
Consumer Goods and Retail
High-tech
Healthcare and Pharmaceuticals
Other End Users
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Frequently Asked Questions

The UAE Contract Logistics Market is projected to register a CAGR of 6% during the forecast period (2024-2029)

Almajdouie Logistics, Al-futtaim Logistics , Mac World Logistic LLC, RAK Logistics, DHL and GAC are the major companies operating in the UAE Contract Logistics Market .

The report covers the UAE Contract Logistics Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the UAE Contract Logistics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

UAE Contract Logistics Market Industry Report

Statistics for the 2024 UAE Contract Logistics market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. UAE Contract Logistics analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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United Arab Emirates Contract Logistics Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)