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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 of UAE Logistics is expected to show a decent growth trajectory from 2021 to 2026 at CAGR of 7.4%. This is mainly due to rapid infrastructural development which has led to services being able to reach previously inaccessible regions.

The UAE logistics market value reached USD 62.08 Billion in 2024. The market is further projected to grow at a CAGR of 5.50% between 2025 and 2034, reaching a value of USD 106.04 Billion by 2034.

The rising demand for e-commerce, as well as improved trade facilities, are driving growth in the market. The progressive government policies, especially in infrastructure development, are one of the main reasons for the boost in logistics capabilities. The industry benefits from the country's strategic location linking up global markets, hence, this sector continues to grow, fueled by soaring demand.

Technological breakthroughs and high-speed practices in supply chain processes have also driven market growth, making the country an increasingly important trade hub. The sector are well positioned for growth over the forecast period.

The UAE Freight And Logistics Market report segments the industry into End User Industry (Agriculture, Fishing, and Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, Wholesale and Retail Trade, Others) and Logistics Function (Courier, Express, and Parcel (CEP), Freight Forwarding, Freight Transport, Warehousing and Storage, Other Services).

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.

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 UAE logistics industry was valued at a market size of USD 30 billion in 2023. The growth is driven by the expanding pharmaceutical and e-commerce sectors, alongside advancements in technology and government initiatives enhancing infrastructure, particularly in freight forwarding, warehousing, and CEP segments.

Market Size, Revenue, Share, Major Players, Segmentation, and Future Outlook Across Key Sectors Base Year : 2024

The UAE Cold Chain Logistics Market Report is Segmented by Service Type (Refrigerated Storage, Refrigerated Transportation, Value-Added Services), Temperature Type (Chilled, Frozen, Ambient, Deep-Frozen/Ultra-Low), Application (Fruits & Vegetables, Meat & Poultry, and Other Perishables), and Geography (Dubai, Abu Dhabi, Sharjah, Ajman & Others). The Market Forecasts are Provided in Terms of Value (USD).

It was forecasted that the logistics market in the United Arab Emirates (UAE) would exceed ** billion U.S. dollars in 2026. Qatar was leading the GCC market with the highest expected cumulative annual growth rate between 2020 and 2026, followed by Saudi Arabia.

The UAE Chemical Logistics Market report segments the industry into By Service (Transportation, Warehousing, Distribution, and Inventory Management, Other Services), By Mode of Transportation (Roadways, Railways, Airways, Waterways, Pipelines), and By End User (Pharmaceutical Industry, Cosmetic Industry, Oil and Gas Industry, Specialty Chemicals Industry, Other End Users).

The United Arab Emirates (UAE) freight and logistics market, valued at approximately $XX million in 2025, is projected to experience robust growth, exhibiting a Compound Annual Growth Rate (CAGR) of 5.98% from 2025 to 2033. This expansion is fueled by several key drivers. The UAE's strategic geographical location as a global trade hub, coupled with its well-developed infrastructure including advanced ports, airports, and road networks, significantly contributes to the market's dynamism. Furthermore, the nation's commitment to diversifying its economy beyond oil, coupled with burgeoning e-commerce and the expansion of its industrial sectors, particularly manufacturing and construction, fuels increasing demand for efficient logistics solutions. The growth is further amplified by government initiatives promoting trade facilitation and the adoption of technological advancements such as automation and digitalization within the logistics sector. While challenges such as fluctuating fuel prices and global economic uncertainties exist, the overall market outlook remains positive, driven by consistent investment in infrastructure and the UAE's enduring position as a pivotal player in global trade. Significant segmentation within the UAE freight and logistics market is observed across end-user industries (Agriculture, Fishing, and Forestry; Construction; Manufacturing; Oil and Gas; Mining and Quarrying; Wholesale and Retail Trade; Others), logistics functions (Courier, Express, and Parcel (CEP); Freight Forwarding; Freight Transport; Warehousing and Storage; Other Services), and destination types (domestic and international). The growth across segments will vary depending on the specific industry's growth trajectory and technological adoption rates. For instance, the e-commerce boom is likely to significantly boost the CEP segment, while the growth of the industrial sectors will drive demand in freight forwarding and warehousing. The increasing focus on temperature-controlled warehousing to cater to the growing demand for perishable goods will be another notable trend. Competition within the market is fierce, with both international giants and local players vying for market share, leading to innovation and efficiency improvements across the board. This competitive landscape, combined with the strong growth drivers, ensures a vibrant and dynamic market for the foreseeable future. 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.

The competition in the Logistics space in the UAE can be divided on the basis of different service segments including Freight Forwarding, Contract Logistics (Warehousing) and Express Delivery.

Explore key trends shaping the UAE retail logistics market, from e-commerce growth to last-mile delivery innovations. Get a deep-dive analysis, key market drivers, and competitive landscape insights.

This statistic depicts the market size of the logistics sector in the United Arab Emirates (UAE) from 2013 to 2015. In 2015, the logistics market in the UAE was worth *** billion U.S. dollars, compared to *** billion U.S. dollars in 2014.

UAE Third-Party Logistics (3PL) Market Report is Segmented by Service (Domestic Transportation Management, International Transportation Management, and More), by End User (Automotive, Energy and Utilities, Manufacturing and More), by Logistics Model (Asset-Light, Asset-Heavy, and Hybrid), by Region (Dubai, Abu Dhabi, Sharjah, Rest of UAE). The Market Forecasts are Provided in Terms of Value (USD).

UAE Reverse Logistics Market is valued at USD 15 billion, driven by e-commerce growth, sustainability initiatives, and efficient supply chains for returns and waste reduction.

The Middle East and Africa Freight & Logistics market, valued at $163.57 million in 2025, is projected to experience robust growth, driven by a Compound Annual Growth Rate (CAGR) exceeding 6.36% from 2025 to 2033. This expansion is fueled by several key factors. The burgeoning e-commerce sector across the region significantly increases demand for efficient and reliable delivery networks. Furthermore, substantial investments in infrastructure development, including port modernization and expansion of road and rail networks, are streamlining logistics operations and reducing transit times. The growth of key industries like manufacturing, automotive, oil and gas, and construction further fuels the market's expansion, as these sectors require extensive logistical support for raw material sourcing, production processes, and product distribution. Government initiatives aimed at diversifying economies and promoting trade also contribute to this positive outlook. However, geopolitical instability in certain regions and potential disruptions to global supply chains pose challenges to sustained growth. Competition among established players like DHL, FedEx, and Kuehne + Nagel, alongside regional logistics companies, is intensifying, leading to pricing pressures and a need for continuous innovation in service offerings. The market's segmentation by function (freight transport, forwarding, warehousing) and end-user industry allows for a targeted approach by logistics providers to cater to specific needs. The forecast period (2025-2033) will witness increasing adoption of technology, particularly in areas like supply chain management software, tracking and tracing systems, and automated warehousing. This technological advancement will improve efficiency, transparency, and cost-effectiveness. The growing awareness of sustainability and the increasing pressure to adopt eco-friendly transportation solutions will also shape the market's future trajectory. Further segmentation into specific Middle Eastern countries (Saudi Arabia, UAE, Israel, etc.) reveals varying growth rates based on economic development, infrastructure maturity, and government policies within each nation. Understanding these regional nuances is critical for companies seeking to maximize their market share. The competitive landscape necessitates strategic partnerships, mergers and acquisitions, and a focus on value-added services to achieve sustained success in this dynamic market. Recent developments include: May 2023: Saudi Logistics Services (SAL) and Lufthansa Technik Logistik Services (LTLS) have signed an initial Memorandum of Understanding (MoU) to collaborate on the logistics activities of LTLS within Saudi Arabia. Under this MoU, SAL will provide freight forwarding, transportation, and customs brokerage services to support LTLS' maintenance logistics operations for their key customers around Saudi Arabia. As a result, LTLS would subsequently strengthen its logistics services coverage within Saudi Arabia., April 2023: Saudi Arabia's Almajdouie Logistics expanded its fleet size by adding 30 new Hyundai Xcient trucks. The engine produces 440 horsepower, making the Hyundai Xcient one of the most powerful heavy-duty trucks globally.. Key drivers for this market are: Rise In E-commerce Growth in The Region, Development of Logistic Infrastructure. Potential restraints include: Rise In E-commerce Growth in The Region, Development of Logistic Infrastructure. Notable trends are: Development of freight transport segment.

This statistic depicts the distribution of the logistics market in the United Arab Emirates (UAE) between 2013 and 2015, by subsector. In that year, the greatest share amongst all subsectors of the logistics market in the UAE was freight forwarding, at ** percent. The estimated total value of the logistic market in the Gulf Cooperation Council for 2015 was *** billion U.S. dollars.

In UAE Reverse Logistics Market is projected to expand from USD 5.8 billion in 2025 to USD 9.4 billion