Market Size of united arab emirates freight and logistics Industry
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Study Period | 2017 - 2030 |
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Market Size (2024) | USD 20.11 Billion |
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Market Size (2030) | USD 30.19 Billion |
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Largest Share by Logistics Function | Freight Transport |
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CAGR (2024 - 2030) | 7.01 % |
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Fastest Growing by Logistics Function | Courier, Express, and Parcel (CEP) |
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Market Concentration | Low |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
United Arab Emirates Freight And Logistics Market Analysis
The United Arab Emirates Freight And Logistics Market size is estimated at 20.11 billion USD in 2024, and is expected to reach 30.19 billion USD by 2030, growing at a CAGR of 7.01% during the forecast period (2024-2030).
20.11 Billion
Market Size in 2024 (USD)
30.19 Billion
Market Size in 2030 (USD)
5.43 %
CAGR (2017-2023)
7.01 %
CAGR (2024-2030)
Fastest Growing Market by Mode of Transport
9.07 %
Projected CAGR, Sea and Inland Waterways, 2024-2030
In September 2022, the government launched the "UAE Maritime Network" initiative. This move aims to bolster international maritime collaborations, position the country as a premier global maritime hub,
Largest CEP Market by Destination
65.36 %
value share, Domestic, 2023
The domestic segment has benefited tremendously as e-commerce started to grow in the country after the pandemic. More companies started a dedicated division for e-commerce services.
Largest Market by End User Industry
28.85 %
value share, Wholesale and Retail Trade, 2023
The e-commerce sector in the UAE experienced a YoY growth of 3% in 2023. The growth in e-commerce sales boosted the growth of the end-user industry.
Largest Warehousing Market by Temperature Control
90.11 %
value share, Non-Temperature Controlled, 2023
In H1 2023, Dubai witnessed a surge in demand for industrial and logistical spaces. This surge was driven by both companies shifting their operations to Dubai and a notable uptick in local manufacturing.
Fastest Growing Warehousing Market by Temperature Control
8.10 %
Projected CAGR, Temperature Controlled, 2024-2030
The pharmaceutical sector is expected to grow by 27% between 2021 and 2025 as the country aims to become a regional pharmaceutical center. This is expected to drive the segment's growth.
Rising investments in road, rail, and sea transportation projects boosting freight service demand in UAE
- Electric and autonomous trucks are gaining traction in the UAE's road freight sector, which is the dominant mode of transportation. In May 2023, Einride, a prominent player in electric and autonomous freight solutions, partnered with the UAE Ministry of Energy and Infrastructure (MOEI). The collaboration aims to introduce Einride's extensive range of electric and autonomous technologies, spanning over 550 km in the UAE. As part of this deal, Einride will deploy 2,000 electric trucks, 200 autonomous trucks, and establish 8 charging stations with over 500 charging points. This strategic move not only signifies a significant milestone in the road freight industry but also underscores the sector's commitment to both sustainability and cutting-edge innovations.
- The UAE has placed significant emphasis on developing its railway infrastructure in recent years. In March 2023, the country inaugurated its national railway network, Etihad Rail, spanning an impressive 900 km. The network is now operational for cargo trains, connecting all the Emirates. The fleet consists of 38 locomotives and over 1,000 wagons, designed to efficiently transport a wide range of goods. The primary route of the UAE National Railway Network stretches from Ghuweifat, on the Saudi Arabian border, to Fujairah, traversing diverse geographical landscapes.
- In the 2022 BRIDI rankings, the UAE slipped two spots to secure the 10th position with a score of 117. Recently, the nation has launched various initiatives to bolster its global partnerships and economic standing. One such initiative is "We the UAE 2031," which focuses on enhancing government efficiency and digital infrastructure. Kezad (UAE) is currently home to more than 26 Chinese projects, attracting a substantial investment of USD 545 million.
Understand The Key Trends Shaping This Market
United Arab Emirates 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.
- Electric and autonomous trucks are gaining traction in the UAE's road freight sector, which is the dominant mode of transportation. In May 2023, Einride, a prominent player in electric and autonomous freight solutions, partnered with the UAE Ministry of Energy and Infrastructure (MOEI). The collaboration aims to introduce Einride's extensive range of electric and autonomous technologies, spanning over 550 km in the UAE. As part of this deal, Einride will deploy 2,000 electric trucks, 200 autonomous trucks, and establish 8 charging stations with over 500 charging points. This strategic move not only signifies a significant milestone in the road freight industry but also underscores the sector's commitment to both sustainability and cutting-edge innovations.
- The UAE has placed significant emphasis on developing its railway infrastructure in recent years. In March 2023, the country inaugurated its national railway network, Etihad Rail, spanning an impressive 900 km. The network is now operational for cargo trains, connecting all the Emirates. The fleet consists of 38 locomotives and over 1,000 wagons, designed to efficiently transport a wide range of goods. The primary route of the UAE National Railway Network stretches from Ghuweifat, on the Saudi Arabian border, to Fujairah, traversing diverse geographical landscapes.
- In the 2022 BRIDI rankings, the UAE slipped two spots to secure the 10th position with a score of 117. Recently, the nation has launched various initiatives to bolster its global partnerships and economic standing. One such initiative is "We the UAE 2031," which focuses on enhancing government efficiency and digital infrastructure. Kezad (UAE) is currently home to more than 26 Chinese projects, attracting a substantial investment of USD 545 million.
| End User Industry | |
| Agriculture, Fishing, and Forestry | |
| Construction | |
| Manufacturing | |
| Oil and Gas, Mining and Quarrying | |
| Wholesale and Retail Trade | |
| Others |
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| Other Services |
Need A Different Region Or Segment?
United Arab Emirates Freight And Logistics Market Size Summary
The United Arab Emirates freight and logistics market is poised for significant growth, driven by advancements in technology and infrastructure. The sector is experiencing a shift towards electric and autonomous vehicles, with partnerships like the one between Einride and the UAE Ministry of Energy and Infrastructure highlighting the commitment to sustainability and innovation. The introduction of electric and autonomous trucks, along with the establishment of charging stations, marks a pivotal development in the road freight industry. Additionally, the UAE's investment in its railway infrastructure, exemplified by the operational Etihad Rail network, enhances cargo transportation capabilities across the Emirates, further solidifying the country's position as a regional logistics hub.
The UAE's strategic initiatives, such as "We the UAE 2031," aim to bolster economic competitiveness and digital transformation, attracting substantial foreign investments. The logistics market's expansion is supported by advanced transport and infrastructure facilities, including roads, metro networks, and maritime transport, which are crucial for economic growth and tourism. Despite challenges like fluctuating fuel prices, the market remains fragmented with key players like Aramex, DHL Group, and DP World leading the charge in adopting sustainable practices. Innovations such as electric delivery vehicles and decarbonization solutions underscore the industry's focus on reducing carbon footprints and enhancing operational efficiency, positioning the UAE as a leader in the freight and logistics sector by 2030.
United Arab Emirates Freight And Logistics Market Size - Table of Contents
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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)
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1.1 End User Industry
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1.1.1 Agriculture, Fishing, and Forestry
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1.1.2 Construction
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1.1.3 Manufacturing
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1.1.4 Oil and Gas, Mining and Quarrying
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1.1.5 Wholesale and Retail Trade
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1.1.6 Others
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1.2 Logistics Function
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1.2.1 Courier, Express, and Parcel (CEP)
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1.2.1.1 By Destination Type
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1.2.1.1.1 Domestic
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1.2.1.1.2 International
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1.2.2 Freight Forwarding
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1.2.2.1 By Mode Of Transport
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1.2.2.1.1 Air
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1.2.2.1.2 Sea and Inland Waterways
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1.2.2.1.3 Others
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1.2.3 Freight Transport
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1.2.3.1 By Mode Of Transport
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1.2.3.1.1 Air
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1.2.3.1.2 Pipelines
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1.2.3.1.3 Rail
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1.2.3.1.4 Road
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1.2.3.1.5 Sea and Inland Waterways
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1.2.4 Warehousing and Storage
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1.2.4.1 By Temperature Control
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1.2.4.1.1 Non-Temperature Controlled
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1.2.4.1.2 Temperature Controlled
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1.2.5 Other Services
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United Arab Emirates Freight And Logistics Market Size FAQs
How big is the United Arab Emirates Freight And Logistics Market?
The United Arab Emirates Freight And Logistics Market size is expected to reach USD 20.11 billion in 2024 and grow at a CAGR of 7.01% to reach USD 30.19 billion by 2030.
What is the current United Arab Emirates Freight And Logistics Market size?
In 2024, the United Arab Emirates Freight And Logistics Market size is expected to reach USD 20.11 billion.
