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United Arab Emirates Courier, Express, and Parcel (CEP) Market Size

The United Arab Emirates Courier, Express, and Parcel (CEP) market is experiencing significant growth, driven primarily by the e-commerce sector, which has been a key contributor to the expansion of both domestic and international segments. The market's expansion is further supported by the increasing consumer penetration of e-commerce and the introduction of innovative delivery solutions, such as electric vertical take-off and landing aircraft, which enhance delivery efficiency and environmental sustainability.

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Market Size of united arab emirates courier, express, and parcel (cep) Industry

United Arab Emirates Courier, Express, and Parcel (CEP) Market Summary
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svg icon Study Period 2017 - 2030
svg icon Market Size (2024) USD 1.20 Billion
svg icon Market Size (2030) USD 1.91 Billion
svg icon Largest Share by Destination Domestic
svg icon CAGR (2024 - 2030) 8.06 %
svg icon Fastest Growing by Destination International
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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United Arab Emirates Courier, Express, and Parcel (CEP) Market Analysis

The United Arab Emirates Courier, Express, and Parcel (CEP) Market size is estimated at 1.20 billion USD in 2024, and is expected to reach 1.91 billion USD by 2030, growing at a CAGR of 8.06% during the forecast period (2024-2030).

1.20 Billion

Market Size in 2024 (USD)

1.91 Billion

Market Size in 2030 (USD)

6.22 %

CAGR (2017-2023)

8.06 %

CAGR (2024-2030)

Fastest Growing Market by Speed of Delivery

8.58 %

Projected CAGR, Express, 2024-2030

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The launch of new express delivery services and seed funding for delivery platforms are significantly driving the segment's growth.

Fastest Growing Market by Model

10.48 %

Projected CAGR, Business-to-Consumer (B2C), 2024-2030

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The DED Trader license in Dubai, designed to support the expansion of e-commerce in the United Arab Emirates, which is a catalyst for the B2C segment, has witnessed a rise in applications due to increasing demand.

Largest Market by Shipment Weight

57.89 %

value share, Light Weight Shipments, 2023

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Delivery of goods like groceries and beauty, health, personal household care, and fashion products is majorly driving the segment's growth.

Largest Market by End User Industry

42.95 %

value share, E-Commerce, 2023

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A few leading parcel delivery providers are dominating the delivery segment for e-commerce retailers due to their established presence and networks.

First Leading Market Player

18.36 %

market share, Aramex, 2022

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Aramex offers its services through 17 offices in the United Arab Emirates. It has a 798,000 sq. ft warehousing facility that uses 9,000 solar panels for electricity.

The e-commerce segment is driving the CEP market's growth

  • E-commerce has been a major growth driver for the domestic and international segments of the market since the pandemic. The largest player was amazon.ae, with a revenue of USD 477.6 million in 2022. It was followed by namshi.com and carrefouruae.com as the second and third-largest stores, with USD 264.8 million and USD 223.2 million, respectively. The top three stores collectively accounted for 35.2% of the top 100 online stores' revenue in the UAE. E-commerce is projected to be valued at USD 13.71 billion by 2027, boosting the market growth significantly.
  • Various e-commerce segments drove domestic and international CEP demand during the review period. Of them, the fashion segment accounted for the maximum revenue contribution share in 2021, with 35.44%, amounting to USD 3.64 billion. It was followed by the electronics segment with 20.55% (USD 2.11 billion) and toys, hobby & DIY with 15.77% (USD 1.62 billion). The e-commerce industry had a consumer penetration rate of 69.4% in 2021, an increase of 2.29% YoY from 2020. The explosion of e-commerce compelled most express companies to start a dedicated division offering e-commerce services.​
  • The UAE issued a license for flying vehicles for parcel deliveries in 2023. Electric vertical take-off and landing (eVTOL) aircraft are going to be used to deliver parcels across the United Arab Emirates, leading to speedy delivery and receipt of small cargo. This mode of delivery also has significant environmental benefits. RegLab works with the issuance of electric aircraft licenses. It issued a temporary license to test an eVTOL aircraft in the United Arab Emirates. The RegLab license also consists of legal provisions on a temporary basis that seek to advance the country's objective of having net zero emissions by 2050.
United Arab Emirates Courier, Express, and Parcel (CEP) Market

United Arab Emirates Courier, Express, and Parcel (CEP) Industry Segmentation

Domestic, International are covered as segments by Destination. Express, Non-Express are covered as segments by Speed Of Delivery. Business-to-Business (B2B), Business-to-Consumer (B2C), Consumer-to-Consumer (C2C) are covered as segments by Model. Heavy Weight Shipments, Light Weight Shipments, Medium Weight Shipments are covered as segments by Shipment Weight. Air, Road, Others are covered as segments by Mode Of Transport. E-Commerce, Financial Services (BFSI), Healthcare, Manufacturing, Primary Industry, Wholesale and Retail Trade (Offline), Others are covered as segments by End User Industry.

  • E-commerce has been a major growth driver for the domestic and international segments of the market since the pandemic. The largest player was amazon.ae, with a revenue of USD 477.6 million in 2022. It was followed by namshi.com and carrefouruae.com as the second and third-largest stores, with USD 264.8 million and USD 223.2 million, respectively. The top three stores collectively accounted for 35.2% of the top 100 online stores' revenue in the UAE. E-commerce is projected to be valued at USD 13.71 billion by 2027, boosting the market growth significantly.
  • Various e-commerce segments drove domestic and international CEP demand during the review period. Of them, the fashion segment accounted for the maximum revenue contribution share in 2021, with 35.44%, amounting to USD 3.64 billion. It was followed by the electronics segment with 20.55% (USD 2.11 billion) and toys, hobby & DIY with 15.77% (USD 1.62 billion). The e-commerce industry had a consumer penetration rate of 69.4% in 2021, an increase of 2.29% YoY from 2020. The explosion of e-commerce compelled most express companies to start a dedicated division offering e-commerce services.​
  • The UAE issued a license for flying vehicles for parcel deliveries in 2023. Electric vertical take-off and landing (eVTOL) aircraft are going to be used to deliver parcels across the United Arab Emirates, leading to speedy delivery and receipt of small cargo. This mode of delivery also has significant environmental benefits. RegLab works with the issuance of electric aircraft licenses. It issued a temporary license to test an eVTOL aircraft in the United Arab Emirates. The RegLab license also consists of legal provisions on a temporary basis that seek to advance the country's objective of having net zero emissions by 2050.
Destination
Domestic
International
Speed Of Delivery
Express
Non-Express
Model
Business-to-Business (B2B)
Business-to-Consumer (B2C)
Consumer-to-Consumer (C2C)
Shipment Weight
Heavy Weight Shipments
Light Weight Shipments
Medium Weight Shipments
Mode Of Transport
Air
Road
Others
End User Industry
E-Commerce
Financial Services (BFSI)
Healthcare
Manufacturing
Primary Industry
Wholesale and Retail Trade (Offline)
Others
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United Arab Emirates Courier, Express, and Parcel (CEP) Market Size Summary

The United Arab Emirates Courier, Express, and Parcel (CEP) market is experiencing significant growth, driven primarily by the surge in e-commerce activities. The market is characterized by a robust expansion trajectory, with major players like amazon.ae, namshi.com, and carrefouruae.com leading the charge. The fashion, electronics, and toys segments have been pivotal in driving domestic and international demand, reflecting the broader trends in consumer behavior. The pandemic has accelerated the adoption of e-commerce, prompting CEP companies to enhance their service offerings to cater to this burgeoning demand. Innovations such as the introduction of electric vertical take-off and landing (eVTOL) aircraft for parcel deliveries underscore the UAE's commitment to leveraging advanced technologies to improve logistics efficiency and sustainability.

The UAE's strategic investments in transport and infrastructure are further bolstering the CEP market, with initiatives aimed at reducing transportation costs and environmental impact. The government's focus on achieving net-zero emissions by 2050 aligns with the broader economic goals of enhancing productivity and fostering sustainable growth. The logistics sector is poised for continued expansion, supported by the region's advanced infrastructure and favorable economic conditions. Despite the fragmented nature of the market, with key players like Aramex, DHL Group, and FedEx holding significant shares, the competitive landscape is evolving with technological advancements and strategic partnerships. These developments are expected to drive further innovation and efficiency in the CEP market, positioning the UAE as a leading hub for logistics and e-commerce in the region.

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United Arab Emirates Courier, Express, and Parcel (CEP) Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes Market Value in USD, Forecasts up to 2030 and analysis of growth prospects)

    1. 1.1 Destination

      1. 1.1.1 Domestic

      2. 1.1.2 International

    2. 1.2 Speed Of Delivery

      1. 1.2.1 Express

      2. 1.2.2 Non-Express

    3. 1.3 Model

      1. 1.3.1 Business-to-Business (B2B)

      2. 1.3.2 Business-to-Consumer (B2C)

      3. 1.3.3 Consumer-to-Consumer (C2C)

    4. 1.4 Shipment Weight

      1. 1.4.1 Heavy Weight Shipments

      2. 1.4.2 Light Weight Shipments

      3. 1.4.3 Medium Weight Shipments

    5. 1.5 Mode Of Transport

      1. 1.5.1 Air

      2. 1.5.2 Road

      3. 1.5.3 Others

    6. 1.6 End User Industry

      1. 1.6.1 E-Commerce

      2. 1.6.2 Financial Services (BFSI)

      3. 1.6.3 Healthcare

      4. 1.6.4 Manufacturing

      5. 1.6.5 Primary Industry

      6. 1.6.6 Wholesale and Retail Trade (Offline)

      7. 1.6.7 Others

United Arab Emirates Courier, Express, and Parcel (CEP) Market Size FAQs

The United Arab Emirates Courier, Express, and Parcel (CEP) Market size is expected to reach USD 1.20 billion in 2024 and grow at a CAGR of 8.06% to reach USD 1.91 billion by 2030.

In 2024, the United Arab Emirates Courier, Express, and Parcel (CEP) Market size is expected to reach USD 1.20 billion.

United Arab Emirates (UAE) CEP Market Report Snapshots

United Arab Emirates Courier, Express, and Parcel (CEP) Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030