Market Size of GCC Warehousing And Distribution Logistics Industry
| Study Period | 2020-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 15.80 Billion |
| Market Size (2029) | USD 22.72 Billion |
| CAGR (2024 - 2029) | 7.54 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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GCC Warehousing and Distribution Logistics Market Analysis
The GCC Warehousing And Distribution Logistics Market size is estimated at USD 15.80 billion in 2024, and is expected to reach USD 22.72 billion by 2029, growing at a CAGR of 7.54% during the forecast period (2024-2029).
- There has been an increase in warehousing demand in GCC countries due to huge investments by the companies for their inventory storage and logistics market-driven by e-commerce. Technology advancement is also supporting market growth.
- The GCC's warehousing and distribution logistics market is estimated to witness substantial growth during the forecast period due to the increasing warehousing infrastructure and government and private investments to develop the region into a robust logistics hub with pro-business regulatory policies.
- The UAE is one of the fastest-growing countries in the GCC region, owing to the rising importance of Dubai in world trade and its strong economic outlook for the forecast period. Bahrain offers some of the lowest setups and operating costs for a logistics business, with cost savings of 30-40% compared to the rest of the GCC. This has encouraged several companies to invest in the country to set up businesses and access the GCC and the Arab world.
- According to industry sources, despite the COVID-19 pandemic-induced economic challenges, the Saudi warehousing sector maintained its winning streak in 2021 as e-commerce and megaprojects boosted demand for larger areas. The need for warehousing is predicted to grow in the next few years due to the growing population and planned big projects in line with Saudi Vision 2030.
- Riyadh, Jeddah-King Abdullah Economic City (KAEC), and Dammam-Al Khobar are the main hubs for the Kingdom's logistics and warehousing business, with a combined supply of 72 million square meters.
- The interest in time-tested warehouse automation systems that pick, pack, sort, and transport products across the facility is rising. To maximize the benefit of automation, end users are increasingly researching ways to incorporate this automation into warehouse software platforms like warehouse management and warehouse control systems (WCS).
