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GCC Freight and Logistics Market Size

The GCC Freight and Logistics Market is experiencing significant growth, with its market size expanding due to substantial investments in infrastructure and strategic initiatives across the region. Saudi Arabia's ambitious plans to enhance its transportation and logistics sector, supported by government funding and public-private partnerships, are pivotal in driving this growth. The UAE's focus on e-commerce and pharmaceuticals further contributes to the market's expansion, while Qatar's maritime industry benefits from increased cargo handling and transshipment activities. These developments underscore the region's commitment to becoming a major transportation hub, reflecting a robust increase in market size over the forecast period.

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Market Size of gcc freight and logistics Industry

GCC Freight and Logistics Market Summary
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svg icon Study Period 2017 - 2030
svg icon Market Size (2024) USD 76.1 Billion
svg icon Market Size (2030) USD 109.9 Billion
svg icon Largest Share by Logistics Function Freight Transport
svg icon CAGR (2024 - 2030) 6.32 %
svg icon Largest Share by Country Saudi Arabia
svg icon Market Concentration Low

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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GCC Freight and Logistics Market Analysis

The GCC Freight and Logistics Market size is estimated at 76.1 billion USD in 2024, and is expected to reach 109.9 billion USD by 2030, growing at a CAGR of 6.32% during the forecast period (2024-2030).

76.1 Billion

Market Size in 2024 (USD)

109.9 Billion

Market Size in 2030 (USD)

5.21 %

CAGR (2017-2023)

6.32 %

CAGR (2024-2030)

Fastest Growing Market by Mode of Transport

6.58 %

Projected CAGR, Air, 2024-2030

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Aligned with the goals outlined in Vision 2030, Saudi Arabia is actively pursuing the transformation of Riyadh Airport into a prominent logistics hub and six-runway airport.

Largest CEP Market by Destination

65.37 %

value share, Domestic, 2023

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The E-commerce sector's growth has been a driving factor for the domestic CEP segment. The e-commerce sector grew by 7.6% YoY and reached USD 23.8 billion in 2023.

Largest Country

33.62 %

value share, Saudi Arabia, 2023

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Following the adoption of the country's new policy, the transport and logistics sector is anticipated to represent 10% of the Saudi Arabian GDP by 2030, up from 6% in 2021.

Largest Market by End User Industry

28.59 %

value share, Wholesale and Retail Trade, 2023

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The region's e-commerce market is primed for continued growth, which is expected to drive the wholesale and retail trade end-user segment.

Fastest Growing Warehousing Market by Temperature Control

7.24 %

Projected CAGR, Temperature Controlled, 2024-2030

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In March 2023, Americold Realty Trust Inc. invested USD 3.9 million, acquiring a 49% stake in RSA Cold Chain. This partnership positions Americold for market entry and expansion in the Middle East.

The rising value of the infrastructure sector in GCC led by Saudi Arabia, leading to the overall demand for freight market

  • The Saudi Arabian government has allocated SAR 40 billion (USD 10.6 billion) to bolster its road network. In 2023, it kickstarted four highway projects under the Public-Private Partnership (PPP) model. With a vision to position the nation as a major transportation hub, Saudi Arabia has set its sights on investing a substantial USD 147 billion, with a specific focus on advancing the transportation and logistics sector.
  • In 2019, Saudi Arabia led the infrastructure sector in the GCC region, boasting a value of approximately USD 6.4 million. The GCC region, known for its diversification and business reforms, was poised to spearhead economic growth in the Middle East and North Africa in 2019. The region was gearing up for significant undertakings, including the Dubai Expo 2020 and the FIFA World Cup 2022 in Qatar. By 2022, social infrastructure projects worth around USD 50 billion were underway, with an additional USD 70 billion in various planning stages. Notably, Saudi Arabia accounted for USD 71 billion of this total, followed by Kuwait (USD 33 billion), Qatar (USD 5.7 billion), and the UAE (USD 4.7 billion).
  • Between 2020 and 2025, the GCC's public and private sectors are projected to require a staggering USD 1.6 trillion in capital for infrastructure development, excluding mega-projects. While the private sector has emerged as a significant contributor, chipping in with resources, the national governments still need to bridge a gap of USD 600 billion to match private sector investments.
GCC Freight and Logistics Market

Government initiatives and rising oil production are driving the GCC freight market, led by Saudi Arabia

  • Qatar's freight and logistics market, valued at USD 2.17 billion in 2022, is projected to reach USD 3.19 billion by 2029. In 2019, Qatar's ports, including Hamad Port, Doha Port, and Ruwais Port, witnessed a surge in cargo handling, with a total of 1,828 ships. This growth bolstered the nation's maritime industry. The transshipment volumes in Qatar's maritime industry climbed in 2022, with its ports handling approximately 116,000 TEUs and over 142,000 tons of general cargo. Qatar Airways witnessed a notable uptick, reporting a 25% rise in cargo, equating to 3.3 million tons, and played a crucial role in transporting over 600 million doses of COVID-19 vaccines.
  • The burgeoning e-commerce and pharmaceutical industries primarily propel the UAE freight and logistics landscape. The e-commerce industry raked in a revenue of approximately USD 11.49 billion in 2021. The country's emphasis on economic diversification has fostered a favorable environment for e-commerce, leading to rapid growth and innovation. The e-commerce industry is projected to generate a revenue of around USD 19.83 billion, with the user base anticipated to reach 6.9 million by 2027.
  • Saudi Arabia, a dominant player in the global oil market, leads oil production in the Arab region. As the largest oil-producing member of OPEC and the world's second-largest producer after the United States, Saudi Arabia's transport and logistics sector is set to contribute 10% to the nation's GDP by 2030, up from 6% in 2021, driven by the country's new strategic initiatives. The Saudi Arabian freight and logistics market is projected to amass a revenue of USD 16.52 billion by 2029.

GCC Freight and Logistics Industry Segmentation

Agriculture, Fishing, and Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, Wholesale and Retail Trade, Others are covered as segments by End User Industry. Courier, Express, and Parcel (CEP), Freight Forwarding, Freight Transport, Warehousing and Storage are covered as segments by Logistics Function. Qatar, Saudi Arabia, UAE are covered as segments by Country.

  • The Saudi Arabian government has allocated SAR 40 billion (USD 10.6 billion) to bolster its road network. In 2023, it kickstarted four highway projects under the Public-Private Partnership (PPP) model. With a vision to position the nation as a major transportation hub, Saudi Arabia has set its sights on investing a substantial USD 147 billion, with a specific focus on advancing the transportation and logistics sector.
  • In 2019, Saudi Arabia led the infrastructure sector in the GCC region, boasting a value of approximately USD 6.4 million. The GCC region, known for its diversification and business reforms, was poised to spearhead economic growth in the Middle East and North Africa in 2019. The region was gearing up for significant undertakings, including the Dubai Expo 2020 and the FIFA World Cup 2022 in Qatar. By 2022, social infrastructure projects worth around USD 50 billion were underway, with an additional USD 70 billion in various planning stages. Notably, Saudi Arabia accounted for USD 71 billion of this total, followed by Kuwait (USD 33 billion), Qatar (USD 5.7 billion), and the UAE (USD 4.7 billion).
  • Between 2020 and 2025, the GCC's public and private sectors are projected to require a staggering USD 1.6 trillion in capital for infrastructure development, excluding mega-projects. While the private sector has emerged as a significant contributor, chipping in with resources, the national governments still need to bridge a gap of USD 600 billion to match private sector investments.
End User Industry
Agriculture, Fishing, and Forestry
Construction
Manufacturing
Oil and Gas, Mining and Quarrying
Wholesale and Retail Trade
Others
Logistics Function
Courier, Express, and Parcel (CEP)
By Destination Type
Domestic
International
Freight Forwarding
By Mode Of Transport
Air
Sea and Inland Waterways
Others
Freight Transport
By Mode Of Transport
Air
Pipelines
Rail
Road
Sea and Inland Waterways
Warehousing and Storage
By Temperature Control
Non-Temperature Controlled
Temperature Controlled
Other Services
Country
Qatar
Saudi Arabia
UAE
Rest of GCC
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GCC Freight and Logistics Market Size Summary

The GCC Freight and Logistics Market is experiencing significant growth, driven by strategic investments and infrastructure developments across the region. Saudi Arabia is at the forefront, with substantial government funding aimed at enhancing its road network and positioning the country as a major transportation hub. The nation's ambitious plans include a focus on advancing the transportation and logistics sector, supported by public-private partnerships and substantial investments. The region's economic diversification efforts, coupled with major events like the Dubai Expo and FIFA World Cup, have further fueled the growth of the logistics industry. The UAE's thriving e-commerce and pharmaceutical sectors also contribute to the robust expansion of freight and logistics services, creating a favorable environment for innovation and business growth.

Qatar and the UAE are key players in the GCC logistics landscape, with Qatar's ports and maritime industry witnessing increased cargo handling and transshipment volumes. The UAE's advanced transportation infrastructure supports its growing logistics sector, which is bolstered by the rise of e-commerce. The region's logistics market is characterized by a fragmented landscape, with major companies like Almajdouie, Bahri, DP World, Kuehne + Nagel, and Qatar Navigation Q.P.S.C. playing pivotal roles. Additionally, initiatives such as Aramex's introduction of electric vehicles and Kuehne + Nagel's decarbonization solutions highlight the industry's commitment to sustainability and innovation. As the GCC continues to invest in infrastructure and technology, the freight and logistics market is poised for continued expansion and transformation.

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GCC Freight and Logistics Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes 1. Market value in USD for all segments 2. Market volume for select segments viz. freight transport, CEP (courier, express, and parcel) and warehousing & storage 3.Forecasts up to 2029 and analysis of growth prospects)

    1. 1.1 End User Industry

      1. 1.1.1 Agriculture, Fishing, and Forestry

      2. 1.1.2 Construction

      3. 1.1.3 Manufacturing

      4. 1.1.4 Oil and Gas, Mining and Quarrying

      5. 1.1.5 Wholesale and Retail Trade

      6. 1.1.6 Others

    2. 1.2 Logistics Function

      1. 1.2.1 Courier, Express, and Parcel (CEP)

        1. 1.2.1.1 By Destination Type

          1. 1.2.1.1.1 Domestic

          2. 1.2.1.1.2 International

      2. 1.2.2 Freight Forwarding

        1. 1.2.2.1 By Mode Of Transport

          1. 1.2.2.1.1 Air

          2. 1.2.2.1.2 Sea and Inland Waterways

          3. 1.2.2.1.3 Others

      3. 1.2.3 Freight Transport

        1. 1.2.3.1 By Mode Of Transport

          1. 1.2.3.1.1 Air

          2. 1.2.3.1.2 Pipelines

          3. 1.2.3.1.3 Rail

          4. 1.2.3.1.4 Road

          5. 1.2.3.1.5 Sea and Inland Waterways

      4. 1.2.4 Warehousing and Storage

        1. 1.2.4.1 By Temperature Control

          1. 1.2.4.1.1 Non-Temperature Controlled

          2. 1.2.4.1.2 Temperature Controlled

      5. 1.2.5 Other Services

    3. 1.3 Country

      1. 1.3.1 Qatar

      2. 1.3.2 Saudi Arabia

      3. 1.3.3 UAE

      4. 1.3.4 Rest of GCC

GCC Freight and Logistics Market Size FAQs

The GCC Freight and Logistics Market size is expected to reach USD 76.10 billion in 2024 and grow at a CAGR of 6.32% to reach USD 109.91 billion by 2030.

In 2024, the GCC Freight and Logistics Market size is expected to reach USD 76.10 billion.

GCC Freight And Logistics Market Report Snapshots

GCC Freight and Logistics Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030