GCC Air Freight Transport Market

GCC Air Freight Transport Market Size and Share:

The GCC air freight transport market size was valued at USD 17.1 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 31.97 Billion by 2033, exhibiting a CAGR of 6.70% from 2025-2033. The market is driven by its strategic geographical position connecting global trade routes, a rapidly expanding e-commerce sector demanding efficient logistics, the development of free trade zones (FTZs) offering business incentives, and significant government investments in modernizing infrastructure to enhance cargo handling capabilities and support economic diversification.

The Gulf Cooperation Council (GCC) region, encompassing countries like Saudi Arabia, the United Arab Emirates (UAE), Qatar, Kuwait, Oman, and Bahrain, occupies a pivotal position in global trade routes. Situated at the crossroads of Europe, Asia, and Africa, the GCC serves as a natural bridge connecting major markets across these continents. This strategic location has been instrumental in establishing the region as a central hub for air freight transport. The UAE, particularly Dubai, has capitalized on its geographical advantage by developing world-class logistics infrastructure. Dubai International Airport and Al Maktoum International Airport have become major cargo hubs, handling significant volumes of air freight annually. For instance, cargo volumes in Dubai International registered a growth of 20.4% in the fourth quarter of 2023 to reach 506,018 tons. Similarly, Qatar's Hamad International Airport has emerged as a key player in global air cargo, leveraging the country's central location to connect various international markets.

The GCC's proximity to emerging markets in Africa and established markets in Europe and Asia also enables it to serve as a transshipment point, reducing transit times and costs for global trade. This advantage attracts multinational companies seeking efficient distribution networks, thereby boosting the region's air freight volumes. Furthermore, the strategic location has prompted significant investments in airport expansions and the development of free trade zones, enhancing the region's capacity to handle increasing air cargo demand. For example, in the UAE, the second phase of development for Al Maktoum International Dubai World Central (DWC) is set to receive an investment of US$35 billion. Along with this, Saudi Arabia's aviation authority is enhancing passenger experiences through AI, aligning with the National Aviation Strategy and Vision 2030. Key goals include tripling annual passenger traffic to 330 million by 2030 and expanding airport infrastructure. These developments not only improve operational efficiency but also attract international logistics providers to establish regional bases, further solidifying the GCC's status as a global air freight hub.

GCC Air Freight Transport Market Trends:

Growing E-commerce Industry

In the GCC, the e-commerce industry has grown remarkably and has had an enormous impact on the market for air freight transport. According to the IMARC Group analysis, the e-commerce market in the region will increase at a pace of 9.26% between 2024 and 2032. E-commerce activity has increased throughout the area due to the ease of online buying, rising internet penetration, and a youthful, tech-savvy populace. For example, the United Arab Emirates had a 99.0 percent internet penetration rate at the start of 2024, with 9.46 million internet users. Due to the increased demand for speedy delivery times brought about by the fast growth of e-commerce and internet usage, merchants and logistics companies are under pressure to implement air freight solutions in order to achieve same-day or next-day delivery standards. This shift has led to increased air cargo volumes, with e-commerce shipments accounting for a substantial portion of the growth.

Expansion of Free Trade Zones (FTZs)

One of the main factors propelling the growth of the air freight transport industry in the GCC has been the creation and extension of Free Trade Zones (FTZs). Multinational corporations are drawn to establish operations in these zones because of the many benefits they provide, such as tax breaks, streamlined customs processes, and full foreign ownership. Successful free trade zones (FTZs) that contribute to higher air cargo volumes include Dubai's Jebel Ali Free Zone (JAFZA) and Dubai Airport Free Zone (DAFZA). Due to the fact that DAFZA currently has over 3000 registered enterprises from more than twenty different sectors and industries, air freight activity through Dubai's airports has increased in tandem. Lead times are decreased by the efficient integration of production, storage, and distribution operations rendered possible by the thoughtful positioning of FTZs close to major airports. This integration enhances the efficiency of air freight operations, making the GCC an attractive destination for businesses reliant on rapid logistics solutions.

Government Investment in Infrastructure

The governments of the GCC region have acknowledged the vital role that infrastructure development plays in supporting the market for air freight transport. As the need for air cargo services continues to rise, substantial investments have been made to renovate and expand airports, improve connectivity, and upgrade cargo handling facilities. One of the goals of Saudi Arabia's Vision 2030 is to make the nation a worldwide center for logistics. The development of King Abdulaziz International Airport in Jeddah and King Khalid International Airport in Riyadh are critical projects for boosting cargo capacity and enhancing operational efficiency. The market for air freight transport in the GCC is anticipated to increase as a result of these developments. Significant investments have also been made by the UAE in its aviation infrastructure. The country's dedication to improving its air freight capacities is demonstrated by the ongoing construction of Al Maktoum International Airport, which is expected to become the biggest airport in the world post-completion.

GCC Air Freight Transport Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the GCC air freight transport market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on service and destination.

Analysis by Service:

• Forwarding
• Airlines
• Mail
• Others

Forwarding services play a significant role in the GCC air freight transport market, as they are considered middlemen who handle all the logistics involved in transporting goods from one country to another. Forwarders communicate with airlines, customs, and local transporters to ensure smooth and efficient cargo delivery. Demand for forwarding services arises due to the need for cost-effective solutions, especially for companies that rely on e-commerce and international trade. With advancements in digital platforms, forwarders in the GCC are adopting technology for real-time tracking, optimizing delivery schedules, and enhancing customer satisfaction. This segment continues to expand as businesses increasingly rely on forwarding providers to navigate complex supply chain demands and regulatory requirements.

With their cutting-edge fleets and well-located airports, airlines continue to be a major force in the GCC air freight sector, providing dependable and quick cargo services. In order to meet the growing demand, airlines in the area are updating their infrastructure and growing their dedicated cargo fleets to handle specific cargo, such as perishables and medicines. They profit from the increase in air freight volumes as international trade improves and e-commerce thrives. Operational efficiency is also being enhanced by innovations like automated freight handling systems and partnerships with free trade zones. The segment's growth is further bolstered by government initiatives to position the GCC as a global logistics hub.

Mail services remain essential for transporting documents, parcels, and small goods quickly across borders. The increasing reliance on e-commerce and cross-border shopping has driven growth in this segment, with postal services and express delivery providers integrating with airlines to ensure rapid delivery. In the GCC, mail services benefit from strong logistics infrastructure and high connectivity offered by regional hubs. Digital transformation, including track-and-trace systems and automated sorting, has further optimized mail delivery operations, ensuring timely and reliable service. This segment's role continues to grow in supporting both personal and business communication and commerce.

Analysis by Destination:

• Domestic
• International

International cargo accounts for the largest market share of 65% in 2024. This growth is driven by the region's role as a global trade hub connecting Europe, Asia, and Africa. This market has been greatly impacted by the large amount of cross-border e-commerce, rising demand for perishable commodities, and increased exports of pharmaceuticals. The establishment of free trade zones and trade agreements aided international air freight by lowering transit times and simplifying customs processes. To handle the growing amounts of international freight, major GCC airports including Dubai International and Hamad International have made investments in state-of-the-art cargo facilities. The international segment continues to be essential to the region's economic diversification and trade expansion because of its superior logistics technology and advantageous geographic location.

Country Analysis:

• Saudi Arabia
• UAE
• Qatar
• Kuwait
• Oman
• Bahrain

With a share of 45.7% in 2024, Saudi Arabia is leading the market. Large-scale infrastructure spending, the nation's geographical position, and robust economic diversification efforts under Vision 2030 are contributing factors that are supporting the expansion of this industry in the country. Alongside this, the ability of the nation to handle cargo has grown substantially as a result of the rise of major airports, such as King Khalid International Airport and King Abdulaziz International Airport. For example, Saudi Arabia's air freight volumes grew dramatically in the year 2023 because of strong growth in items like perishables and medicines, coupled with increased e-commerce sales. Furthermore, the government has been putting emphasis on turning Riyadh into a major international logistics center to illustrate the nation's determination to take the lead in international trade. Saudi Arabia's dominance in the air freight sector is also strengthened by the existence of free trade zones and simplified customs processes, which make it a vital hub for regional and international cargo transfers.

Key Country Takeaways:
 

Saudi Arabia Air Freight Transport Market Analysis

Due to large infrastructure expenditures and calculated efforts to establish the kingdom as a major global logistics center, Saudi Arabia's air freight transport industry has been expanding significantly. The area is aggressively working to turn Riyadh Airport into a major logistical center and six-runway airport in accordance with Vision 2030, with the goal of making the country a significant transportation hub. The kingdom also intends to invest more than USD 267 billion, with a particular emphasis on developing the logistics and transportation industry. In order to strengthen its position as a major participant in the global supply chain, Saudi Arabia has committed USD 106.6 billion to increase its capacity for land, air, and marine freight. These developments have significantly enhanced the country's air cargo capacity and operational efficiency.

UAE Air Freight Transport Market Analysis

The United Arab Emirates remains a major area in the GCC air freight transport market, primarily through its advanced infrastructure and excellent location. The area boasts a thriving e-commerce sector and pharmaceuticals sector in particular, which are helping in the robust expansion of freight and logistics services. According to the IMARC Group, the e-commerce market in this region is projected to reach USD 632 billion by 2032. It is growing at a rapid rate and is likely to continue at a pace of 22.50% from 2024 and 2032. Besides the boom in e-commerce, the advanced infrastructure in the UAE, including modern airports and logistics facilities, has also played a crucial role in accommodating the rising volumes of air cargo. The area commits itself to maintaining its status as a leading air freight hub by continuous investments in infrastructure and technology, thereby ensuring that the area meets future demand and maintains its competitive edge in the region.

Competitive Landscape:

In order to fulfill the growing demand, major competitors in the market are concentrating on improving operational efficiency and growing their capabilities. Investing in cutting-edge technology like data-driven logistics platforms, real-time tracking tools, and automated freight handling systems is becoming commonplace to maximize service delivery. By building new routes and modernizing their fleets to handle higher freight volumes, businesses are also growing their regional and international networks. Notable trends include partnerships with e-commerce sites and the incorporation of sustainability practices, such as carbon-neutral operations and fuel-efficient airplanes. In order to increase the efficiency and dependability of supply chain operations, industry leaders are also forming alliances with free trade zones and making investments in specialized cargo facilities close to important airports. By leveraging these strategies, the industry is addressing the growing demand in sectors like e-commerce, pharmaceuticals, and perishables, thereby ensuring competitiveness and adaptability in an increasingly dynamic market environment.

The report provides a comprehensive analysis of the competitive landscape in the GCC air freight transport market with detailed profiles of all major companies, including:

• FedEx
• DHL
• Qatar Airways Group
• Qatar Aviation Services
• Jazeera Airways Co.
• Saudi Airlines Cargo Company Limited
• Etihad Aviation Group
• Maximus Air
• Air Charter Service
• JAS Middle East LLC

Latest News and Developments:

• In January 2024, DHL acquired full control of UAE-based freight forwarder Danzas AEI Emirates. This acquisition will transfer Danzas’ 1,100 logistics experts and ownership of over 20 facilities to DHL. It is aimed at accelerating DHL’s foothold in the UAE, GCC, and the broader Middle East regions.
• In February 2024, FedEx Express extended its operations by investing $350 million (Dhs1.3 billion) in a cutting-edge air and ground hub at Dubai World Central (DWC) Airport in Dubai South.
• In November 2024, Qatar Airways Cargo launched a strategic partnership with MASkargo to enhance global cargo connectivity. The collaboration, effective January 1, 2025, enables Qatar Airways to operate Boeing 777 flights from Doha to Kuala Lumpur twice weekly, increasing cargo capacity by over 200 tons. MASkargo will facilitate over 75 tons of weekly cargo to Sydney and Melbourne. Both airlines leverage their networks for improved service, with MASkargo's facilities capable of handling one million tons annually, expandable to three million tons.

GCC Air Freight Transport Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the GCC air freight transport market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the GCC air freight transport market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the GCC air freight transport industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.