The United Arab Emirates Freight and Logistics Market Report is Segmented by Logistics Function (Courier Express, and Parcel (CEP), Freight Forwarding, Freight Transport, Warehousing and Storage, Other Services), by End User Industry (Agriculture, Fishing, and Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, Wholesale and Retail Trade, and Others). The Market Forecasts are Provided in Terms of Value (USD)

UAE Freight Forwarding Market valued at USD 21.6 Bn, driven by e-commerce growth, infrastructure investments, and strategic trade hub location, with key segments in road, air, sea, and rail transport.

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United Arab Emirates Logistics Market Size 2025-2029

The United Arab Emirates logistics market size is forecast to increase by USD 11.37 billion at a CAGR of 7.1% between 2024 and 2029.

Market Size & Forecast

Market Opportunities: USD 60.44 billion
Market Future Opportunities: USD USD 11.37 billion 
CAGR : 7.1%

Market Summary

The Logistics Market in the United Arab Emirates (UAE) is a significant contributor to the country's economic growth, with the sector's value reaching an estimated indexed growth of 13.5% in 2020 compared to 2019, according to recent market analysis. The market's expansion is driven by the UAE's strategic location as a global trade hub, advanced infrastructure, and increasing investment in technology. The logistics sector's growth is particularly noticeable in the e-commerce segment, which has seen a substantial increase in demand due to the ongoing digital transformation. In fact, e-commerce logistics accounted for over 30% of the total logistics market share in 2020.
Furthermore, the adoption of advanced technologies, such as automation and artificial intelligence, is streamlining operations and enhancing efficiency. Moreover, the UAE's logistics sector is undergoing a shift towards sustainability, with a growing focus on reducing carbon emissions and adopting green logistics practices. This trend is expected to gain momentum as the UAE strives to meet its net-zero carbon emissions target by 2050. Overall, the logistics market in the UAE continues to evolve, presenting numerous opportunities for businesses and investors alike.

What will be the size of the United Arab Emirates Logistics Market during the forecast period?

Explore in-depth regional segment analysis with market size data with forecasts 2025-2029 - in the full report.
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The logistics market in the United Arab Emirates (UAE) is a significant contributor to the region's economic growth, accounting for a substantial percentage of the country's Gross Domestic Product (GDP). Currently, the market occupies a double-digit market share within the Middle East and North Africa (MENA) region. Looking ahead, the logistics sector in the UAE is projected to experience a steady expansion, with industry experts estimating a growth rate of approximately 6% annually. This expansion is driven by several factors, including the increasing demand for e-commerce and the ongoing development of infrastructure projects. A comparison of key performance indicators highlights the market's robustness.
For instance, on-time delivery rates in the UAE logistics sector are consistently above 95%, while order accuracy metrics exceed 98%. These figures underscore the sector's commitment to operational efficiency and customer satisfaction. Moreover, the adoption of advanced technologies, such as AI-powered logistics and cloud-based solutions, is on the rise. This trend is expected to further boost the sector's growth and improve overall performance. For example, the implementation of transport planning software and fleet maintenance schedules has led to significant fuel efficiency gains, reducing logistics costs and enhancing operational efficiency. In summary, the logistics market in the UAE is a vital component of the country's economy, with a strong current performance and promising future growth prospects.
The sector's commitment to innovation, operational efficiency, and customer satisfaction sets it apart, making it an attractive investment opportunity for businesses looking to expand their presence in the region.

How is this United Arab Emirates Logistics Market segmented?

The United Arab Emirates logistics market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029,for the following segments.

Application

  Transportation
  Inventory holding
  Administration


End-user

  Manufacturing
  Retail
  Healthcare
  Automobile
  Others


Channel

  B2B
  B2C


Type

  3PL
  2PL
  4PL
  1PL


Geography

By Application Insights

The transportation segment is estimated to witness significant growth during the forecast period.

Logistics in the United Arab Emirates (UAE) is a critical component of the country's thriving business landscape. This market encompasses the planning, execution, and control of the procurement, movement, and stationing of materials, personnel, and resources. It is an integral part of supply chain management and includes various services such as freight forwarding, multimodal transport via sea, road, air, and rail, order fulfillment, supply chain visibility, and sustainable logistics practices. The logistics sector in the UAE is experiencing significant growth, with order fulfillment processes becoming increasingly efficient. Supply chain visibility is improving, allowing businesses to better manage their invento

Market Size, Trends, Segmentation, and Future Outlook Across Key Sectors Base Year : 2024

UAE Sea Freight Forwarding Market is projected to grow at 6.5% CAGR, driven by trade volumes, infrastructure, and e-commerce expansion, reaching $15 Bn by 2030.

The UAE Freight Forwarding Market is anticipated to grow at over 6% CAGR from 2024 to 2029, influenced by its strategic logistics hub status.

Discover the booming UAE freight and logistics market! This in-depth analysis reveals a projected CAGR of 5.98% (2025-2033), driven by e-commerce growth, infrastructure development, and government initiatives. Explore market size, segmentation, key players, and future trends in this dynamic sector. Recent developments include: March 2024: Aramex had introduced a fleet of fully electric motorcycles to its last-mile delivery vehicles in the United Arab Emirates (UAE). This initiative is part of Aramex’s long-term strategic goal to achieve a total fleet of 98% Electric Vehicles (EVs) by 2030, aligned with Science Based Targets initiative (SBTi) target that Aramex is committed to. The e-bikes were introduced after intensive testing of several different models and manufacturers, and Aramex finalized the selected model based on its enduring performance and stability, particularly in local weather conditions.January 2024: Kuehne + Nagel has announced its Book & Claim insetting solution for electric vehicles, to improve its decarbonization solutions. Developing Book & Claim insetting solutions for road freight was a strategic priority for Kuehne + Nagel. Customers who use Kuehne + Nagel's road transport services can now claim the carbon reductions of electric trucks when it is not possible to physically move their goods on these vehicles.January 2024: Odys Aviation, a sustainable aviation company building hybrid-electric vertical take-off and landing (VTOL) aircraft and Aramex have entered into a partnership to develop cargo operations in the UAE, Oman and further afield in the region. Under the terms of the partnership, Odys Aviation and Aramex intend to collaborate on the development of autonomous logistics programs which will ultimately introduce cargo flights leveraging Odys Aviation’s cargo aircraft and Aramex’s fleet management capabilities.. Key drivers for this market are: Growing trade relations, Increased demand for perishable goods. Potential restraints include: Cargo theft, High cost of maintainig. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

In 2023, Emirates Post Group and Aramex launched joint last-mile delivery optimization programs, targeting reduced delivery time by 30% to meet the e-commerce sector’s growing needs. Dubai remains the epicenter of logistics due to its well-established ports (Jebel Ali), airports, and free zones like Dubai South and JAFZA. Abu Dhabi and Sharjah are also emerging as key logistics corridors due to industrial diversification and government-led logistics cluster development. The UAE logistics and warehousing market reached an estimated valuation ofAED 85 Billion in 2023, driven by the country’s role as a regional trade and transport hub, rising e-commerce penetration, and continuous infrastructure investment. The market is dominated by players such asDP World, Emirates Logistics, Aramex, Agility Logistics, and Hellmann Worldwide Logistics, offering integrated solutions across freight forwarding, last-mile delivery, cold storage, and bonded warehousing.

The United Arab Emirates (UAE) freight and logistics market is experiencing robust growth, driven by the country's strategic location, expanding e-commerce sector, and burgeoning tourism industry. The market's size in 2025 is estimated at $25 billion, reflecting a significant increase from previous years. This expansion is fueled by several key factors. Firstly, the UAE's robust infrastructure, including advanced ports, airports, and road networks, facilitates efficient goods movement. Secondly, the government's commitment to diversifying the economy beyond oil and gas has spurred investments in logistics infrastructure and technology. The rise of e-commerce significantly increases demand for last-mile delivery solutions, further boosting the market. Finally, the UAE's position as a major global trade hub attracts significant foreign investment and international trade, contributing to increased freight volumes. Key segments within the market include courier, express, and parcel (CEP) services, freight forwarding, freight transport, and warehousing and storage. The domestic market is considerably larger than the international segment, reflecting strong internal trade and consumption patterns. The continued growth in e-commerce, coupled with government initiatives to improve efficiency and integrate technology, suggests a positive outlook for the UAE freight and logistics sector in the coming years. While challenges like fluctuating fuel prices and global economic uncertainty may exist, the UAE's proactive approach to market development positions it for continued expansion and a significant increase in market value by 2033, potentially exceeding $40 Billion, assuming a conservative CAGR of 5%. This growth will be particularly noticeable within the road freight and warehousing sectors, benefiting from e-commerce expansion and the need for efficient last-mile delivery solutions. The competitive landscape is highly fragmented, with both international giants and local players competing for market share. Companies like DHL, DP World, and Aramex hold substantial market presence alongside significant regional players and SMEs focused on niche segments. Consolidation and strategic partnerships are expected to be a key trend, with companies seeking to expand their service offerings and geographical reach. Technological advancements, such as the adoption of blockchain technology for supply chain transparency and artificial intelligence for route optimization and predictive analytics, are transforming the industry and leading to greater efficiency and cost savings. The focus on sustainability and environmental considerations will also influence future growth, with companies increasingly investing in greener logistics solutions to meet rising demand for environmentally responsible operations. Recent developments include: March 2024: Aramex had introduced a fleet of fully electric motorcycles to its last-mile delivery vehicles in the United Arab Emirates (UAE). This initiative is part of Aramex’s long-term strategic goal to achieve a total fleet of 98% Electric Vehicles (EVs) by 2030, aligned with Science Based Targets initiative (SBTi) target that Aramex is committed to. The e-bikes were introduced after intensive testing of several different models and manufacturers, and Aramex finalized the selected model based on its enduring performance and stability, particularly in local weather conditions.January 2024: Kuehne + Nagel has announced its Book & Claim insetting solution for electric vehicles, to improve its decarbonization solutions. Developing Book & Claim insetting solutions for road freight was a strategic priority for Kuehne + Nagel. Customers who use Kuehne + Nagel's road transport services can now claim the carbon reductions of electric trucks when it is not possible to physically move their goods on these vehicles.January 2024: Odys Aviation, a sustainable aviation company building hybrid-electric vertical take-off and landing (VTOL) aircraft and Aramex have entered into a partnership to develop cargo operations in the UAE, Oman and further afield in the region. Under the terms of the partnership, Odys Aviation and Aramex intend to collaborate on the development of autonomous logistics programs which will ultimately introduce cargo flights leveraging Odys Aviation’s cargo aircraft and Aramex’s fleet management capabilities.. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

The logistics market in the United Arab Emirates (UAE) was expected to exceed ** billion U.S. dollars by 2026. The logistics sector contributes approximately eight percent to the national GDP.

The GCC Freight and Logistics Market Report is Segmented by End User Industry (Agriculture, Fishing, and Forestry, Construction, Manufacturing, and More), by Logistics Function (Courier, Express, and Parcel (CEP), Freight Forwarding, Freight Transport, Warehousing and Storage, and Other Services), and by Country (Qatar, United Arab Emirates, Saudi Arabia, and Rest of GCC). The Market Forecasts are Provided in Terms of Value (USD).

The Middle East and Africa Freight and Logistics Market Report is Segmented by Logistics Function (Freight Forwarding, Freight Transport, and More), End User Industry (Agriculture, Fishing, and Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, Wholesale and Retail Trade, and Others), Geography (United Arab Emirates, Saudi Arabia, Nigeria, and More). Market Forecasts are Provided in Terms of Value (USD).

The global freight forwarding market size was valued at USD 164.8 billion in 2024 and is projected to reach USD 255.6 billion by 2033, growing at a CAGR of 5.2% during the forecast period (2025–2033).
Report Scope:

UAE Logistics and Warehousing Market Segmentation What are the Regulations and Initiatives which have Governed the Market Which Industry Challenges Have Impacted the Growth for UAE Logistics and Warehousing Market

The UAE logistics and warehousing market is projected to continue its upward trajectory through 2029, supported by the country’s strategic location, trade facilitation policies, and rapid growth in e-commerce and digital retail. The market is expected to grow at aCAGR of 6.8% from 2024 to 2029, with significant investments in smart logistics infrastructure, automation, and sustainability initiatives driving the next wave of transformation. What Lies Ahead for UAE Logistics and Warehousing Market? Some of the recent competitor trends and key information about competitors include:

The United Arab Emirates Contract Logistics Market Report 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) and by Country. The Report Offers the UAE Contract Logistics Market Size and Forecasts in Values (USD) for all the Above Segments.

United Arab Emirates Freight And Logistics Market size was valued at $ 20.23 Bn in 2024 and is expected to reach $ 34.52 Bn by 2032, growing at a CAGR of 6.9% from 2026 to 2032Key Market Drivers:Strategic geographic location: The United Arab Emirates status as a worldwide commerce hub between the East and West benefits its logistics market. As a critical sea and air freight gateway, Dubai International Airport alone handled 2.5 Million tons of freight in 2022, demonstrating the UAE's vital position in global trade.

The GCC freight and logistics market is experiencing robust growth, driven by the region's expanding economies, burgeoning e-commerce sector, and strategic investments in infrastructure development. The increasing reliance on global trade, coupled with the rise of specialized logistics services like temperature-controlled warehousing and express delivery, fuels this expansion. Key segments like courier, express, and parcel (CEP) services, along with freight forwarding and warehousing, are witnessing significant traction. The construction, manufacturing, and oil and gas sectors are major end-user industries contributing substantially to market demand. While the market faces challenges such as geopolitical instability and fluctuating fuel prices, ongoing investments in smart logistics solutions and technological advancements are mitigating these risks. The growing adoption of automation, digitalization, and blockchain technology is expected to further streamline operations and enhance efficiency, driving sustained market growth. Competition among established players like Aramex, DHL, and DP World, alongside local and regional players, remains intense, fostering innovation and improved service offerings. Looking ahead, the GCC freight and logistics market is poised for continued expansion, fueled by government initiatives focused on diversification and economic growth. The substantial investments in port infrastructure, improved road networks, and the development of logistics hubs are significantly contributing to the sector's competitiveness. The increasing demand for faster, more reliable, and cost-effective logistics solutions, particularly in the e-commerce sector, will drive further market growth. Furthermore, the growing focus on sustainable and environmentally friendly logistics practices presents a significant opportunity for companies to differentiate themselves and capitalize on the increasing consumer and regulatory demands for greener solutions. The market's future hinges on successfully navigating the challenges posed by fluctuating oil prices, regional geopolitical dynamics, and ongoing competition, but the overall outlook remains positive. We estimate a market size of approximately $50 billion in 2025, with a CAGR of 6-8% projected through 2033. Recent developments include: March 2024: Aramex had strengthened its presence in Saudi Arabia with the inauguration of a new regional office in Riyadh, to significantly enhance Aramex's capabilities to serve new and existing businesses across the region and also to boost the Kingdom's logistics infrastructure and to contribute to the Vision 2030 goal of establishing Saudi Arabia as a global logistics hub.March 2024: Aramex had introduced a fleet of fully electric motorcycles to its last-mile delivery vehicles in the United Arab Emirates (UAE). This initiative is part of Aramex’s long-term strategic goal to achieve a total fleet of 98% Electric Vehicles (EVs) by 2030, aligned with Science Based Targets initiative (SBTi) target that Aramex is committed to. The e-bikes were introduced after intensive testing of several different models and manufacturers, and Aramex finalized the selected model based on its enduring performance and stability, particularly in local weather conditions.January 2024: Kuehne + Nagel has announced its Book & Claim insetting solution for electric vehicles, to improve its decarbonization solutions. Developing Book & Claim insetting solutions for road freight was a strategic priority for Kuehne + Nagel. Customers who use Kuehne + Nagel's road transport services can now claim the carbon reductions of electric trucks when it is not possible to physically move their goods on these vehicles.. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

The size of the GCC Air Freight Market market was valued at USD 16.81 Million in 2024 and is projected to reach USD 27.82 Million by 2033, with an expected CAGR of 7.46% during the forecast period. Recent developments include: November 2023: United Parcel Service (UPS) finalized its acquisition of Minnesota-based MNX, a global provider of time-sensitive logistics solutions. This acquisition strengthens UPS's capabilities in time-sensitive logistics, particularly benefiting healthcare clients in the United States, Europe, and Asia., October 2023: DHL, a global freight forwarder, successfully acquired full control of UAE-based freight forwarder Danzas AEI Emirates. DHL now owns 40%, and Investment Trading Group (ITG) owns 60%, with the remaining 60% held by the Al Tayer group. DHL emphasizes that the seamless integration of Danzas will contribute to accelerated growth in the United Arab Emirates (UAE), the GCC, and the Middle East.. Key drivers for this market are: Economic expansion, Trade liberalization. Potential restraints include: Regulatory barriers, Security concerns. Notable trends are: Booming international segment.

UAE Digital Freight Forwarding Platforms Market is valued at $1.2 Bn, driven by e-commerce growth, digital tech adoption, and efficient supply chains.