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GCC Air Freight Transport Market Size (2024 - 2029)

The GCC air freight transport sector is poised for growth, with its market size projected to expand significantly over the forecast period. Despite a recent temporary downturn due to reduced demand and excess cargo capacity, the region's strategic location in trans-continental trade and substantial government investments in airport infrastructure are expected to drive long-term expansion. The development of domestic and transit logistics hubs, along with improved multimodal networks, will enhance trade efficiency. As the Middle East emerges as a key global aviation market, the GCC is set to benefit from these dynamics, supported by favorable government policies and regional cooperation.

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Market Size of GCC Air Freight Transport Industry

GCC Air Freight Transport Market Summary
Study Period 2020-2029
Base Year For Estimation 2023
Market Size (2024) USD 16.81 Billion
Market Size (2029) USD 24.08 Billion
CAGR (2024 - 2029) 7.46 %
Market Concentration Medium

Major Players

GCC Air Freight Transport Market Major Players

*Disclaimer: Major Players sorted in no particular order

GCC Air Freight Transport Market Analysis

The GCC Air Freight Transport Market size is estimated at USD 16.81 billion in 2024, and is expected to reach USD 24.08 billion by 2029, growing at a CAGR of 7.46% during the forecast period (2024-2029).

  • According to IATA’s May 2023 data, cargo volumes for the Middle East carriers decreased by 6.8 percent year-over-year in April of 2023. This was a slight decrease from the 5.5 percent in March 2023. However, compared to April of 2022, the capacity grew by 10%.
  • This could be due to the air freight industry adapting to the recovery of passenger demand, which brings with it belly capacity. However, IATA also noted some tailwinds, such as an improvement in the purchasing managers index in April, which is a sign of global export demand and of an improving purchasing manager’s index in China.
  • The location of the region in trans-continental trade has promoted its focus on the development of domestic and transit commodity logistics hubs. To take advantage of the geographical advantages, the governments of the Gulf countries are investing heavily in the improvement and expansion of their airport infrastructure.
  • The Middle East will become one of the world’s fastest-growing aviation markets in the next ten years due to the massive economic transformation that many Gulf and other countries are undergoing, and many of them have become key transportation hubs for people and cargo, as well as the expansion of aviation into Africa and the success of cargo operations in countries such as Turkey and a number of Gulf countries.
  • The GCC air freight market is likely to experience a temporary downturn in the near future due to a lack of demand and an oversupply of both air and ocean cargo capacity, which has caused rates to drop drastically.
  • In the medium to long term, air cargo is expected to grow in the GCC region as a result of government policies and partnerships, as well as moves towards integration and cooperation. This will help to improve the efficiency of multimodal networks and facilitate trade.

GCC Air Freight Transport Industry Segmentation

Airfreight is a transportation mode of delivering fast-speed shipments via aircraft, primarily for longer distances. The report offers a complete background analysis of the GCC air freight industry, including an assessment and contribution of the sector in the economy, market overview, market size estimation for key segments, key countries and emerging trends in the market segments, market dynamics, and key air freight parameters. The report also covers the impact of COVID-19 on the market.

The GCC air freight transportation market is segmented by services, by destination and by country. By services, the market is segmented by forwarding, airlines, mail, and other services. By destination, the market is segmented by domestic and international, and by country, the market is segmented by Saudi Arabia, United Arab Emirates, Qatar, and the Rest of GCC. 

The report offers market size and forecasts for the GCC air freight transport market in value (USD) for all the above segments.

By Services
Forwarding
Airlines
Mail
Other Services
By Destination
Domestic
International
By Country
Saudi Arabia
United Arab Emirates
Qatar
Rest of GCC
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GCC Air Freight Transport Market Size Summary

The GCC air freight transport market is poised for significant growth over the forecast period, driven by the region's strategic location as a trans-continental trade hub and substantial investments in aviation infrastructure. The market is experiencing a rise in demand for air cargo services, fueled by the expansion of e-commerce, globalization, and the diversification of GCC economies away from oil dependency. This growth is supported by the development of domestic and transit logistics hubs, with governments investing in airport expansions and technological advancements to enhance capacity and efficiency. The region's air cargo industry is becoming increasingly competitive, with both international and local players vying for market share, and the integration of digital technologies further intensifying this competition.

Despite a temporary downturn due to oversupply and reduced demand, the medium to long-term outlook for the GCC air freight market remains positive. The region is expected to benefit from improved global export demand and strategic partnerships that enhance multimodal network efficiency. Saudi Arabia, in particular, is witnessing robust growth in its air cargo sector, supported by significant infrastructure upgrades and increased international connectivity. The country's focus on sectors like manufacturing and e-commerce, along with technological innovations in cargo handling and tracking, are contributing to the industry's expansion. Major players such as FedEx, DHL, and Qatar Airways Group are actively shaping the market, with recent acquisitions and strategic moves aimed at strengthening their presence and capabilities in the region.

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GCC Air Freight Transport Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Current Market Scenario

    2. 1.2 Technological Trends

    3. 1.3 Government Regulations and Initiatives

    4. 1.4 Supply Chain/Value Chain Analysis

    5. 1.5 Spotlight on Key Commodities Transported by Air

    6. 1.6 Elaboration on Air Freight Rates

    7. 1.7 Insights into Key Ground Handling Equipment in Airports

    8. 1.8 Insights on Air Freight Carriers by Type (Belly Cargo and Freighter)

    9. 1.9 Review and Commentary on Standards and Regulations on the Safe Transport of Dangerous Goods

    10. 1.10 Brief on Cold Chain Logistics in Air Cargo Sector

    11. 1.11 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Services

      1. 2.1.1 Forwarding

      2. 2.1.2 Airlines

      3. 2.1.3 Mail

      4. 2.1.4 Other Services

    2. 2.2 By Destination

      1. 2.2.1 Domestic

      2. 2.2.2 International

    3. 2.3 By Country

      1. 2.3.1 Saudi Arabia

      2. 2.3.2 United Arab Emirates

      3. 2.3.3 Qatar

      4. 2.3.4 Rest of GCC

GCC Air Freight Transport Market Size FAQs

The GCC Air Freight Transport Market size is expected to reach USD 16.81 billion in 2024 and grow at a CAGR of 7.46% to reach USD 24.08 billion by 2029.

In 2024, the GCC Air Freight Transport Market size is expected to reach USD 16.81 billion.

GCC Air Freight Transport Market Report Snapshots

GCC Air Freight Transport Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)