GCC Courier, Express And Parcel Market Size (2024 - 2029)

GCC Courier, Express And Parcel Market Analysis

The GCC Courier, Express And Parcel Market size is estimated at USD 10.12 billion in 2024, and is expected to reach USD 17 billion by 2029, growing at a CAGR of 10.94% during the forecast period (2024-2029).

• One of the main drivers of the market growth is e-commerce. With high connectivity, a youthful population, and modern infrastructure, the country ranks among the leading online retailing markets in the Middle East.
• In Saudi Arabia, the popularity of pickup, and drop-off (PODs) are becoming more and more popular, according to the sources. Currently, around 15% to 20% of orders are picked up at PODs operated by courier operators or their POD partners. The increase in e-commerce investment by the big players was likely to lead to an increase in the number of warehousing facilities and an increase in POI points.
• For instance, in October 2023, the National Transport and Logistics Strategy NTL invested approximately USD 133 billion in developing the logistics infrastructure of the Kingdom of Saudi Arabia (KSA). The NTL invested to improve KSA's multidimensional freight transport and logistics capacity. Large-scale projects are planned in the maritime sector to modernize existing ports and terminals, as well as develop new ports and trade routes. The objective is to increase the annual container throughput in Saudi Arabia to over four times its current capacity, reaching 40 million TEUs by 2030. The NTL Plan entails the construction of around 40 new logistics centers, covering a total area exceeding 100 million square meters. This represents over half of the existing number of logistics centers and more than double the count from the year 2020.
• In March 2021, global e-commerce giant Amazon announced plans to construct 11 new facilities in Saudi Arabia, increase its storage capacity by 89 percent in the Kingdom, and expand its geographic delivery footprint by 58 percent.
• According to a recent report by Dubai-based news agency Arab News, Majid Al Futtaim said that the increase in e-commerce demand has led to an expansion of the company’s fulfillment and delivery infrastructure. The company opened a 9,000-square-meter fulfillment center in Riyadh that operates 24 hours per day, 7 days per week. The center can handle as many as 5,000 e-commerce orders per day. The company employs more than 500 workers to process the orders. The order fulfillment process is carried out with the help of a fleet of refrigerated trucks. The company opened additional fulfillment centers in 2022.
• Return rates for e-commerce goods were low in Saudi Arabia because most transactions were cash on demand, but they are expected to increase as digital payments continue to grow. One of the biggest challenges the industry will face in the coming years is the need for postal codes in Saudi Arabia. Delivery companies in the Kingdom often asked for landmarks instead of addresses, and drivers often asked for locations to be found via WhatsApp.

GCC Courier, Express And Parcel Industry Segmentation

Courier express parcel (CEP) is an acronym for courier express parcel service providers that provide logistic services in specific areas. The services offered vary in terms of delivery speed, package weight, and package volume, as well as how the shipment of goods is carried out. In particular, the regulations relating to weight and volume provide a high degree of standardization and a high potential for automation.

The Gulf Cooperation Council (GCC) courier, express, and parcel market is segmented by business (B2B, B2C, and C2C), destination (domestic and international), end-user (services, wholesale, and retail trade, life-sciences/healthcare, industrial manufacturing, and other end-users), and by country (Saudi Arabia, United Arab Emirates, Qatar, Kuwait, Oman, and Bahrain). 

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