United Arab Emirates Freight and Logistics Market - Growth, Trends, Covid-19 Impact, and Forecasts (2022 – 2027)

United Arab Emirates Freight and Logistics Market is segmented by Function (Freight Transport, Freight Forwarding, Warehousing, and Value-added Services and Other Services) and End User (Manufacturing and Automotive, Oil and Gas, Mining, and Quarrying, Agriculture, Fishing, and Forestry, Construction, Distributive Trade(Wholesale and Retail Segments - FMCG included), and Other End Users (Telecommunications, etc.)), Emirate (Dubai, Abu Dhabi, Sharjah, Ras Al Khaimah, Fujairah, Ajman, Umm Al Quwain. The report offers market size and forecasts for United Arab Emirates Freight and Logistics in value (USD Billion) for all the above segments.

Market Snapshot

CAGR
Study Period: 2018-2027
Base Year: 2021
CAGR: >5 %

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Market Overview

The Freight and Logistics Market in UAE is expected to grow at a CAGR of more than 5% through the forecast period. The UAE freight and logistics market has been growing steadily, mainly driven by the consistent and fast growth of e-commerce across the region and rising international trade.

The COVID-19 pandemic impacted overall supply chain operations in the UAE, with road freight due to sealing of borders and air freight due to flight cancellation being the major sufferers. Moreover, companies have been struggling with employee infections and have been forced to move to a remote working setup, at least for non-operational staff. The industry is gradually recovering from the transport restrictions. Going forward, pharmaceutical logistics will play an important part in the distribution of the COVID-19 vaccine, once it is ready and is hence, expected to lead vertical market growth in the future.

Dubai’s strategic location between Asia and Europe, serves both the East and the West, providing optimum trading conditions for the Emirate. To facilitate the trade and e-commerce market, Dubai has implemented initiatives for the development of its infrastructure and technology, to implement a well-integrated transport system and excellent logistics infrastructure.

In recent years and despite economic headwinds swirling around the Arabian Gulf, the logistics sector continues to occupy the fast lane. The logistics arena outperforms other major industries, but it is now rightly-regarded as a crucial enabler in the country’s economic diversification efforts.

Scope of the Report

Freight and logistics refer to the transportation of goods in the domestic, as well as international via various modes of transportation that includes air, rail, and roadways.

The market is segmented by Function (Freight Transport, Freight Forwarding, Warehousing, and Value-added Services and Other Services) and End User (Manufacturing and Automotive, Oil and Gas, Mining, and Quarrying, Agriculture, Fishing, and Forestry, Construction, Distributive Trade(Wholesale and Retail Segments - FMCG included), and Other End Users (Telecommunications, etc.)), Emirate (Dubai, Abu Dhabi, Sharjah, Ras Al Khaimah, Fujairah, Ajman, Umm Al Quwain. The report offers market size and forecasts for United Arab Emirates Freight and Logistics in value (USD Billion) for all the above segments.

BY FUNCTION
Freight Transport
Road
Rail
Sea
Air
Freight Forwarding
Warehousing
Value-added Services and Other Functions
BY END-USER
Manufacturing and Automotive
Oil and Gas, Mining, and Quarrying
Agriculture, Fishing, and Forestry
Construction
Distributive Trade (Wholesale and Retail Segments - FMCG included)
Other End Users (Telecommunications, etc.)
BY EMIRATE
Dubai
Abu Dhabi
Sharjah
Ras Al Khaimah
Fujairah
Ajman
Umm Al Quwain

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Key Market Trends

Growing E-Commerce in United Arab Emirates

Growth in e-commerce comes as digital becomes the future in the United Arab Emirates. High internet usage, accompanied by smartphone penetration is one of the primary driving forces of growth in the e-commerce market in the United Arab Emirates.

A significant advancement in digital technology has led to a dramatic increase in active mobile internet users in the country. The mobile phone penetration in the country is at a world-record high of 210.9%. UAE residents are among the top 10 globally when it comes to spending time on the internet and social media, averaging seven hours and 54 minutes daily.

The United Arab Emirates is making rapid strides as the fastest growing e-commerce market in the Middle East and North Africa (MENA), according to a joint study by Dubai Economy and global payments technology company Visa, which ranks first in Forbes list of World’s Best Regarded Companies.

COVID-19 is boosting the UAE e-commerce business as consumers change their shopping behavior by opting to buy online rather than shopping at physical stores. This extensive growth of e-commerce is driving the investments in e-commerce logistics related infrastructure and technology to support the growth of the e-commerce.

united-arab-emirates-freight-logistics-market

Growing Pharmaceutical Industry in UAE Driving Logistics

Dubai recently decided to reduce its pharmaceutical imports by 18 percent (from USD 4 billion) by the end of 2022.

With the recent approval of the Dubai Silk Road Strategy and existing outstanding logistics infrastructure, the UAE is fast turning into a source market in the supply chain, manufacturing and exporting pharmaceuticals to high-demand markets such as Africa and Asia.

To achieve sustainable growth for the healthcare and pharmaceutical industry the U.A.E. government has adopted a series of long-term plans. The Dubai Industrial Strategy 2030 and the Abu Dhabi vision 2030, consider the pharmaceutical industry as one of the main sub-sectors to develop with its future growth prospects, export potential, and mid-term to long-term economic impact. A key long-term focus for the UAE government has been to reduce its reliance on imported pharmaceuticals.

One huge incentive for international companies looking to expand is the ease of doing business. This is something that the UAE excels in. To increase their infrastructure the UAE has created several free zones across the country that are now hubs for the pharmaceutical industry. These include Dubai Healthcare City, Dubai Science Park and Jebel Ali Free Zone.

In Oct 2021, Solidifying its position as a global leader in the field of handling and storage of pharmaceutical products and vaccines across all temperature ranges, Abu Dhabi Ports’ Logistics, a subsidiary of AD Ports Group, has been awarded the coveted Good Distribution Practice (GDP) accreditation by one of the world’s leading testing, inspection, and certification bodies.

Etihad Cargo has outlined its plans to focus on COVID-19 focused services, setting up a dedicated COVID-19 distribution team in anticipation of a vaccine for the virus. Amazon.ae announced that it has launched International Shopping Experience, delivering items from the UAE to Bahrain, Kuwait and Oman. The delivery includes import fees along with customs clearance managed by Amazon’s couriers. The move acts as a strong fillip to the growth of e-commerce across the Middle Eastern region.

united-arab-emirates-freight-logistics-market

Competitive Landscape

The United Arab Emirates freight and logistics market is competitive and fragmented with many international and local players actively competing for market share. DHL, Aramex, Al-Futtaim Logistics are some of the leading players in the market. The technology integration in the logistics sector is high and the emergence of digital players in the pool is increasing. Ecommerce growth has also helped in the emergence of digital players in the region. With the overall logistics infrastructure in the country developing rapidly the rivalry within the industry is expected to be fueled further.

Recent Developments

January 2021: Emirates SkyCargo flew 20,000 cargo flights on the airline’s passenger aircraft. the cargo carrier transported a total of 600 million doses of COVID-19 vaccines to over 80 destinations, one of the largest volumes globally by any airline cargo carrier. The air cargo carrier transported over 265,000 tonnes of perishables and food on its flights in 2021, facilitating an important volume of the global cross-border logistics in the trade of food and other perishables.

October 2021: UAE start-up Trukker, which provides Uber-like services for lorries in the Middle East and North Africa, has planned to enter six new markets and expand its presence to 10 markets by the end of 2021 as digital services demand for its logistics platform continues to grow. The company entered Bahrain, Jordan, Oman, and Turkey. It currently operates in the UAE, Saudi Arabia, Egypt, and Pakistan.

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 Technological Trends

    3. 4.3 Government Regulations and Initiatives

    4. 4.4 Impact of COVID-19 on the Market (Short-term and Long-term Effects on the Industry as well as Economy)

    5. 4.5 Insights into E-commerce and Impact of E-commerce Growth on the Logistics Market

    6. 4.6 Spotlight on Cross-Border Trade

    7. 4.7 Brief on Logistics Infrastructure Development in UAE

    8. 4.8 Courier, Express, and Parcel (CEP) Market in UAE (Market Size (2016 - 2026), Trends, and Future))

    9. 4.9 Cold Chain Logistics Market in the United Arab Emirates (Market Size (2016 - 2026), Trends, and Future)

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

    2. 5.2 Market Restraints

    3. 5.3 Market Opportunities

    4. 5.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 5.4.1 Threat of New Entrants

      2. 5.4.2 Bargaining Power of Buyers/Consumers

      3. 5.4.3 Bargaining Power of Suppliers

      4. 5.4.4 Threat of Substitute Products

      5. 5.4.5 Intensity of Competitive Rivalry

  6. 6. MARKET SEGMENTATION (Market Size By Value)

    1. 6.1 BY FUNCTION

      1. 6.1.1 Freight Transport

        1. 6.1.1.1 Road

        2. 6.1.1.2 Rail

        3. 6.1.1.3 Sea

        4. 6.1.1.4 Air

      2. 6.1.2 Freight Forwarding

      3. 6.1.3 Warehousing

      4. 6.1.4 Value-added Services and Other Functions

    2. 6.2 BY END-USER

      1. 6.2.1 Manufacturing and Automotive

      2. 6.2.2 Oil and Gas, Mining, and Quarrying

      3. 6.2.3 Agriculture, Fishing, and Forestry

      4. 6.2.4 Construction

      5. 6.2.5 Distributive Trade (Wholesale and Retail Segments - FMCG included)

      6. 6.2.6 Other End Users (Telecommunications, etc.)

    3. 6.3 BY EMIRATE

      1. 6.3.1 Dubai

      2. 6.3.2 Abu Dhabi

      3. 6.3.3 Sharjah

      4. 6.3.4 Ras Al Khaimah

      5. 6.3.5 Fujairah

      6. 6.3.6 Ajman

      7. 6.3.7 Umm Al Quwain

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Overview (Market Concentration and Major Players)

    2. 7.2 Company Profiles

      1. 7.2.1 Deutsche Post DHL Group

      2. 7.2.2 United Parcel Service Inc.

      3. 7.2.3 Ceva Logistics

      4. 7.2.4 Agility Logistics

      5. 7.2.5 Gulf Agency Company (GAC)

      6. 7.2.6 Gulf Warehousing Company (GWC)

      7. 7.2.7 Al-Futtaim Logistics

      8. 7.2.8 Aramex

      9. 7.2.9 Freight International LLC

      10. 7.2.10 ATC Allied Transport

      11. 7.2.11 RSA Global

      12. 7.2.12 RAK Logistics

      13. 7.2.13 Emirates Logistics LLC

      14. 7.2.14 Bell & John Logistics

      15. 7.2.15 Fleet Line - Shipping LLC*

    3. *List Not Exhaustive
    4. 7.3 Other Companies (Key Information/Overview)

      1. 7.3.1 Emirates Post, DP World, Al Hilal Transporting and Contracting Company, Jenae logistics, Gulftainer, Mac World Logistics LLC, Mac World Logistics LLC, CSS Group, DTDC Eurostar Courier & Cargo LLC, IAL Logistics Emirates LLC, and Century Express*

  8. 8. FUTURE OF THE MARKET

  9. 9. APPENDIX

    1. 9.1 Macroeconomic Indicators (GDP Distribution by Activity, Transport and Storage Sector-contribution to Economy, etc.)

    2. 9.2 Insights into Capital Flows

    3. 9.3 External Trade Statistics - Export and Import, by Product

    4. 9.4 Insights into Key Export Destinations

    5. 9.5 Insights into Key Import Origin Countries

  10. 10. DISCLAIMER

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Frequently Asked Questions

The United Arab Emirates Freight & Logistics Market market is studied from 2018 - 2027.

The United Arab Emirates Freight & Logistics Market is growing at a CAGR of >5% over the next 5 years.

ARAMEX INTERNATIONAL LLC, AL FUTTAIM, RAK Logistics, Ceva Logistics, Hellman Worldwide Logistics LLC are the major companies operating in United Arab Emirates Freight & Logistics Market.

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