Middle East and Africa Logistics Market Report and Forecast 2024-2032

Middle East and Africa Logistics Market Outlook

The Middle East and Africa logistics market size reached USD 967.08 billion in 2023. The market is expected to grow at a CAGR of 5.4% between 2024 and 2032, reaching almost USD 1558.35 billion by 2032.

Key Takeaways:

• The Transport and Logistics sector serves as a vital driver of economic and social development in the MENA region, contributing approximately 10% to total GDP and employing around 6% of the workforce directly. In Q1 2021, the logistics industry in MENA witnessed a significant surge in funding, reaching its highest quarterly amount in the past four years, with a year-on-year increase of 179%. Specifically, funding for Delivery & Logistics experienced a remarkable 525% increase compared to Q4 2020, accompanied by a 60% rise in the total number of transactions within this sector.

• As per industry reports, during 2020, UAE ports handled over 15 million TEUs (twenty-foot equivalent units) and accommodated more than 25,000 port calls, reflecting substantial activity and growth in maritime operations. This surge was notably influenced by a substantial $12.4 billion infrastructure deal closed by Aramco with a global investor consortium.

• Furthermore, Foreign Direct Investment (FDI) inflows in the MENA region reached USD 13.8 billion in Q2 2021, following a previous quarter inflow of USD 1.8 billion. This upward trend underscores growing investor confidence and interest in the region's transport and logistics landscape.

Logistics plays a critical role in business operations and supply chain efficiency, encompassing activities like transportation, warehousing, and order fulfilment to ensure timely and cost-effective delivery of goods. The Middle East and Africa logistics market is experiencing significant growth driven by strategic geographic positioning, economic diversification efforts, and infrastructure investments. Countries like the UAE and Saudi Arabia leverage their location as key trade hubs, supported by investments in non-oil sectors like manufacturing and e-commerce, driving demand for robust logistics services. Infrastructure projects such as Saudi Arabia's Vision 2030 and the UAE's Vision 2021 allocate substantial funds to expand transportation networks, benefiting the logistics sector. Moreover, the adoption of advanced technologies like AI and IoT enhances logistics efficiency, streamlining operations and boosting market growth.

In Africa, logistics is influenced by a focus on domestic markets due to limited regional interaction, affecting international trade. The economy, largely dependent on mining, sees varied logistics development across countries like Morocco and Egypt. African logistics companies aim to connect rural communities to supply chains, creating growth opportunities. The region's airports are poised for significant growth, driven by rising air transport volumes and investment in infrastructure. Middle Eastern airports, including Dubai and Abu Dhabi, lead this trend, investing in facilities and passenger experiences, supported by close partnerships with major airlines. These airports prioritise collaboration, digitisation, and sustainability, aiming for green building certifications and enhanced guest experiences. The Middle East and Africa present a dynamic landscape for logistics and aviation, characterised by growth opportunities and evolving industry strategies for the Middle East and Africa logistics market development.

Market Segmentation

Middle East and Africa Logistics Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Model Type

• 1 PL

• 2 PL

• 3 PL 

• Others

Market Breakup by Transportation Mode

• Roadways

• Seaways

• Railways

• Airways 

Market Breakup by End User

• Manufacturing

• Consumer Goods and Retail

• Food and Beverages

• IT Hardware and Telecom

• Healthcare

• Chemicals

• Construction

• Automotive

• Oil and Gas

• Others 

Market Breakup by Region

• Saudi Arabia

• United Arab Emirates

• Nigeria

• South Africa

• Others

Competitive Landscape

Key players in the logistics market in Middle East and Africa offer services utilising technological advancement while carrying out mergers and acquisitions to support the end users.

• FedEx Corporation 

• United Parcel Service, Inc. 

• Schenker AG 

• C.H. Robinson Worldwide Inc. 

• Deutsche Post AG 

• DSV A/S 

• CMA CGM Group (CEVA Logistics SA)

• Kuehne + Nagel International AG 

• Nippon Express Co., Ltd. 

• Expeditors International of Washington, Inc.

• Kintetsu World Express Inc.

• A.P. Møller – Mærsk A/S

• Others

Key Highlights of the Report