UAE Logistics Market Size, Share and Growth Analysis Report - Forecast Trends and Outlook (2024-2032)

UAE Logistics Market Growth

The UAE logistics industry growth is driven by rapidly growing infrastructure development, including the development of logistics corridors and multimodal hubs. The Dubai Industrial Strategy 2030 aims to elevate the output of the manufacturing sector, such as automotive, assisting logistics companies to capitalise on the space.

Moreover, last-mile delivery has become a key focus in the UAE logistics market due to the rising demand for faster and more convenient delivery options. Companies are investing in innovative last-mile delivery solutions such as drones, autonomous vehicles, and locker systems to streamline in order to reduce delivery times, costs, and carbon emissions while improving overall customer experience.

UAE Logistics Market Analysis

The UAE logistics market demand is also influenced by trends such as growing demand for foreign goods, the development of integrated supply chain networks, and advancements in logistics technology.

In the UAE, the 3PL segment is largely led by international logistics firms like DHL, FedEx, and UPS. The expansion of the UAE logistics market dynamics and trends are being fuelled by the growing need for comprehensive logistics solutions, as businesses increasingly seek to outsource their entire supply chain management to a single provider.

UAE Logistics Industry Outlook

According to the Dubai Statistics Center - Government of Dubai, in 2022, the total freight movement at Dubai airports amounted to 2,187,030 tons. Al Maktoum International (DWC) handled 189,708 tons, while Dubai International (DXB) managed 1,997,322 tons. In 2023, the total freight movement increased to 2,286,606 tons. DWC handled 174,270 tons, while DXB handled 2,112,336 tons. Further, according to industry reports, e-commerce penetration in the UAE retail sector surged from 5% in 2019 to 12% in 2023. This rapid growth in online shopping has led to a higher demand for logistics and supply chain services, boosting the UAE logistics market revenue.

As reported by the Department of Finance and General Administration of Customs, in 2022, the volume of trade within private customs warehouses and free zones in the Emirate of Abu Dhabi revealed a clear disparity. Private customs warehouses handled USD 275.57 million in trade value, with a total weight of 16 thousand tons, representing just 6% of the overall trade value. In contrast, free zones accounted for a significantly larger share, with a trade value of USD 4,139.50 million and a weight of 229 thousand tons, contributing 94% to the total trade value.

In Abu Dhabi, re-exports experienced growth between 2021 and 2022. In 2021, the re-export trade was valued at USD 12,357.79 million, with a total weight of 2,282 thousand tons. By 2022, the value grew to USD 12,873.53 million, and the weight increased to 2,714 thousand tons, indicating a 4% growth rate, according to the Department of Finance and General Administration of Customs. This growth drives the UAE logistics industry revenue, as the UAE uses its strategic location and advanced infrastructure to support re-exports, involving the import, processing, and re-export of goods.

The UAE’s position as a major global trade hub enhances its logistics capabilities, linking key markets in Europe, Asia, and Africa.

• Well-developed ports, airports, and road networks support efficient logistics operations and supply chain management.
• Investment in various sectors, including logistics and transportation, boosts growth in the UAE logistics industry.

Expensive operational and labour costs can impact the profitability of logistics companies.

• Economic fluctuations in the oil sector can affect logistics demand and market stability.
• Complex regulations and compliance requirements may pose operational difficulties for businesses.

Rising e-commerce demand drives expansion in logistics services and technology investments.

• Adoption of automation, AI, and digital platforms can enhance efficiency and service quality.
• Ongoing investments in logistics infrastructure and smart city developments create opportunities in the UAE logistics market.

Fluctuations in global trade and economic conditions can impact logistics operations and profitability.

• Regional political instability and conflicts may disrupt supply chains and logistics activities.
• Intense competition from regional and global players can pressure margins and market share.

Key Players in the UAE Logistics Market and Their Key Initiatives

Global Shipping & Logistics LLC

• Expanded its cold storage capacity in Dubai to meet the growing demand of the UAE logistics market. 
• Implemented energy-efficient solutions and renewable energy sources. 

Aramex International LLC

• Introduced a digital freight platform to streamline logistics operations. 
• Expanded its clean mobility fleet in the UAE by introducing electric vehicles.

United Parcel Service, Inc.

• Announces Hyperlocal, a next-day delivery service to capture the UAE logistics market opportunities. 
• Expanded its smart logistics technology in the UAE.

Schenker AG

• Collaborated with Kaden to improve logistics facilities in Saudi Arabia 
• Introduced green logistics practices, including the use of eco-friendly packaging.

UAE Logistics Industry Segmentation

“UAE 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

• Dubai 
• Abu Dhabi
• Others

UAE Logistics Market Share

The growth of the UAE logistics market is driven by several factors. Roadways provide efficient regional connectivity and cost-effective local transport, which are essential for last-mile delivery and support the burgeoning e-commerce sector. Seaways are also crucial, with major ports handling significant international cargo and transporting bulk goods like oil and gas efficiently and affordably. Additionally, the UAE’s strategic maritime position strengthens its role as a global trade hub, enhancing international trade, re-exports, and appeal to global shipping lines.

Leading Companies in the UAE Logistics Market

Market players are utilising advancements in technology and data analytics to streamline processes, manage inventory levels, optimise routes, and ensure timely delivery of goods.

• Global Shipping & Logistics LLC
• Aramex International LLC 
• United Parcel Service, Inc. 
• Schenker AG 
• C.H. Robinson Worldwide Inc. 
• Deutsche Post AG 
• DSV A/S 
• FedEx Corporation 
• CMA CGM Group (CEVA Logistics SA) 
• Kuehne + Nagel International AG  
• Expeditors International of Washington, Inc.  
• Kintetsu World Express Inc. 
• A.P. Møller – Mærsk A/S