GCC Freight and Logistics Market

GCC Freight and Logistics Market Size and Share:

The GCC freight and logistics market size was valued at USD 172.08 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 293.2 Billion by 2033, exhibiting a CAGR of 5.70% from 2025-2033. The market is primarily driven by continual advancements in digital technologies, favorable sustainability initiatives, cross-border trade expansion, the increasing adoption of automation and AI, the rapid integration of eco-friendly practices, improved infrastructure and trade agreements, a growing focus on operational efficiency, and deeper economic integration fostering global connectivity and partnerships.

The market in the GCC is mainly driven by the augmenting trade volumes facilitated by strategic geographical positioning as a global trade hub. Furthermore, the increasing demand for efficient transportation and storage solutions is enabling seamless connectivity across major international markets, thereby propelling the market. For instance, on December 15, 2024, Saudi Arabia announced to invest more than USD 2.66 Billion to develop 18 new logistics zones, improving its infrastructure to attract both local and global investments. This is part of the Kingdom's strategy to increase the number of logistics zones from 22 to 59 by 2030, strengthening its position as a global logistics hub. Additionally, the rising adoption of e-commerce is augmenting the need for last-mile delivery and warehousing facilities, which in turn is fostering market development. Moreover, modern technologies such as automation and digital tracking systems are improving operational efficiency, which further supports the expansion of the market.

In addition to this, an enhanced focus on sustainability is driving investments in eco-friendly logistics practices, such as electric vehicles and energy-efficient warehouses. For instance, on 21 August 2024, Maersk opened the largest Logistics Park in the Middle East at Jeddah Islamic Port, Saudi Arabia. The 225,000-square-meter facility offers integrated logistics solutions, including multi-modal connectivity, warehousing, and temperature-controlled storage. It aims to enhance supply chains, support global trade, and contribute to Saudi Vision 2030. The park also focuses on sustainability and diversity through initiatives like solar power and a women’s academy. Moreover, the increasing government support through infrastructure development and policy reforms is strengthening the logistics ecosystem. Moreover, the growing focus on free trade agreements is creating lucrative opportunities for cross-border trade, thereby largely contributing to the growth of the market. Apart from this, the rising foreign investment inflow is developing regional capabilities, thus making the market align with international standards.

GCC Freight and Logistics Market Trends:

Adoption of Advanced Digital Technologies

The GCC freight and logistics market is increasingly embracing technologies such as automation, artificial intelligence, and digital tracking systems. These technologies are allowing the streamlining of operations in supply chains by improving the real-time visibility of movements and improving decision-making processes, thereby supporting the market demand. Automated systems also reduce manual errors, increases productivity, and ensure timely deliveries. For instance, on May 14, 2024,Einride partnered with DP World to electrify inter-terminal container flows at Jebel Ali Port, enhancing efficiency and sustainability. This collaboration, the largest deployment of electric, autonomous freight mobility in the Middle East, will involve 100 electric trucks and is expected to handle 1,600 daily container movements by 2024. The initiative aims to reduce carbon emissions and support the UAE’s sustainable shipping goals. . Moreover, predictive analytics is used to forecast demand, optimize routes, and minimize costs in operations by logistics providers. This digital transformation is significantly reshaping the industry, enabling companies to remain competitive and meet changing market demands effectively.

Rising Focus on Sustainability Initiatives

Sustainability is becoming crucial for the GCC freight and logistics sector as it is influenced heavily by environmental regulations and rapidly changing consumer preferences. With companies investing in all kinds of eco-friendly practices from the use of electric vehicles, warehouses powered by solar, to increasing energy efficiency in the running of supply chains, sustainability initiatives are reducing carbon emission while increasing operational efficiency. Moreover, government favorable initiatives to incentivize businesses to engage in better, greener practice is fostering market growth. These initiatives are aligning the industry with global environmental standards and long-term sustainability goals. For instance, on 29^th October 2024, Think Big Shipping and Logistics plans major expansion in the Middle East and Gulf, building on successes in the U.S., Germany, South Africa, and Senegal. Key initiatives include developing modern logistics centers in Egypt, Saudi Arabia, and the UAE, leveraging advanced technologies, and supporting sectors like petrochemicals and agriculture. The company aims to enhance efficiency, reduce costs, and adopt eco-friendly solutions amid geopolitical challenges. .

Expansion of Cross-Border Trade

Cross-border trade in the GCC region is growing rapidly on account of improved infrastructure, agreements on trade, and the initiatives of the government. Strategic investments in logistics corridors and transport networks are facilitating easy movement of goods between the countries. Moreover, improved customs procedures and digital documentation systems are reducing delay and promoting trade efficiency, thereby propelling the market. This expansion is fostering stronger international partnerships and opening up new markets for regional players. For instance, on December 18, 2024, DP World, a UAE based logistics and supply chain company, , announced to expand its operations in freight forwarding across the next two years in Brazil. It plans to increase its number of offices sixfold by 2026, thus creating 150 new jobs with significantly improved end-to-end supply chain solutions across Latin America. This expansion will enable DP World to offer a wide variety of services and handle 75,000 TEUs every year within the next five years. Additionally, DP World is contributing to the growth of Brazil’s logistics sector through key partnerships and terminal expansions, further supporting its enhanced service offerings. . Growing volumes in trade and deeper economic integration are turning the GCC region into a global gateway for trading.

GCC Freight and Logistics Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the GCC freight and logistics market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on logistics function, and end use industry.

Analysis by Logistics Function:

• Courier, Express and Parcel
  • Destination Type
    • Domestic
    • International
• Freight Forwarding
  • Mode of Transport
    • Air
    • Sea and Inland Waterways
    • Others
• Freight Transport
  • Mode of Transport
    • Air
    • Pipelines
    • Rail
    • Road
    • Sea and Inland Waterways
• Warehousing and Storage
  • Temperature Control
    • Non-Temperature Controlled
    • Temperature Controlled
• Others

Freight transport leads the market in 2024, accounting for a share of around 52.5%. Freight transport plays a crucial role in the GCC freight and logistics market, accelerating economic growth and regional integration. The strategic geographical location of GCC countries as a gateway connecting Asia, Europe, and Africa highlights its importance in ensuring smooth and good movement. The infrastructure strength is supported by state-of-the-art ports, airports, and road networks. The growing demand for e-commerce, cross-border trade, and diversification under national visions such as Saudi Vision 2030 further amplify the importance of freight transport. Moreover, advancements in freight transport technology through automation and digital tracking systems improves operational efficiency and transparency.

Analysis by End Use Industry:

• Agriculture, Fishing and Forestry
• Construction
• Manufacturing
• Oil and Gas, Mining and Quarrying
• Wholesale and Retail Trade
• Others

Agriculture, fishing, and forestry play a crucial role in the market as it is driven by the increasing demand for temperature-controlled transportation and storage. These industries need efficient logistics to ensure freshness and quality of perishable goods such as seafood, fruits, and timber. The importation and exportation of agricultural products also greatly contribute to regional trade, emphasizing the need for a strong supply chain infrastructure.

Construction plays a significant role in the GCC freight and logistics market, fueled by increasing infrastructure and urbanization. This sector creates high demand for moving heavy machinery, raw materials, and prefabricated components. Timely delivery and cost efficiency in construction projects are ensured through proper logistics solutions that support rapid development in the region, as well as government vision such as Vision 2030, aimed at the improvement of urban and industrial infrastructure.

Manufacturing plays a vital role in the GCC freight and logistics market due to the diversification efforts within the region and investments in industrialization. The sector relies on efficient supply chains to move raw materials in and finished products out for distribution within local and international markets. High-end logistics technologies such as automation and digital tracking are making it easier to operate with more efficiency, ensuring timely deliveries, and helping the region's manufacturing hubs grow.

Analysis by Country:

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

In 2024, Saudi Arabia holds the largest regional segment, due to its location between Asia, Europe, and Africa making it an important hub for world trade. With significant investment in infrastructure through Vision 2030, mega-projects such as NEOM and the Red Sea Gateway Terminal will only strengthen the Kingdom's logistics capabilities. Initiatives such as government-backed initiatives promoting sustainability and technological integration improves the efficiency of operations, attracts foreign investments, and expands cross-border trade networks. Moreover, e-commerce is growing rapidly, along with industrial diversification, further cementing Saudi Arabia's position as a critical player in regional logistics and supply chain innovation.

Key Regional Takeaways:
 

Kingdom of Saudi Arabia (KSA) Freight and Logistics Market Analysis

The Kingdom of Saudi Arabia freight and logistics is leading the market and is influenced by strategic investments in infrastructure development, increasing e-commerce activities, and the nation's positioning as a global trade hub. Notably, on December 16, 2024, Arcapita and Flow Progressive Logistics have partnered to develop an 80,000-square-meter logistics complex in Riyadh. The facility will offer cold storage, dry storage, and specialized spaces for pharmaceuticals and hazardous goods. This collaboration supports Saudi Arabia's Vision 2030 by addressing growing demand for high-quality logistics facilities and contributing to the Kingdom's industrial and economic diversification efforts. . Moreover, government initiatives under Vision 2030, focusing on sustainability and technological innovation, are improving operational efficiency, attracting foreign investments, and supporting the expansion of cross-border trade networks. For instance, The National Industrial Development and Logistics Program (NIDLP) aims to augment Saudi Arabia’s industrial sector, contributing 20% to GDP by 2030 and attracting USD 426 Billion in investments. The program targets creating 1.6 million jobs, doubling industrial exports, and improving logistics, aiming for a top 25 ranking in the Logistics Performance Index. In 2024, NIDLP launched new logistics zones, introduced Industry 4.0 projects, expanded mining initiatives, and established defense localization agreements, further advancing Saudi Arabia’s industrial and logistics sectors.

United Arab Emirates (UAE) Freight and Logistics Market Analysis 

The market in the UAE is driven by the strategic geographical location of the UAE as a global trade hub, along with modern infrastructure and the rising pace of e-commerce activities. For instance, on October 9, 2024, RITES Ltd. signed a Memorandum of Understanding with Etihad Rail to collaborate on UAE rail infrastructure, focusing on logistics improvements. The partnership includes rolling stock supply, project management, and rail operations, aiming to streamline logistics through capacity analysis and enhanced rail corridor efficiency. It also explores advanced IT solutions for train operations and logistics management, with a focus on sustainable infrastructure and improved connectivity. Thereby, an enhanced focus on developing infrastructure is fostering the market. Moreover, rising investment in smart logistics technologies such as automation and blockchain increases the operational efficiency of the industry. Government initiatives such as free trade zones and policies related to sustainability are also promoting growth in the market. For instance, on 15 December 2024, The Roads and Transport Authority in Dubai, collaborated with TruKKer, to establish "Logisty", a Digital Logistics Platform that targets commercial transport services, fleet management for logistics, and on-demand booking and tracking. The platform supports Dubai's vision of improving its global competitiveness in finance, business, and economy and aligns with the Dubai Commercial Road Transport & Logistics Strategy 2030. With advanced technological features, it is supposed to improve operational efficiency and user experience in freight transportation. It is set to officially launch in December 2024, contributing to the position of Dubai as the leading logistics hub in the region.

Competitive Landscape:

The GCC freight and logistics market is characterized by intense competition driven by advancements in technology, sustainability efforts, and infrastructure development. Regional players are increasingly adopting automation, digital tracking systems, and artificial intelligence to enhance operational efficiency and service reliability. Sustainability is becoming a key differentiator, with companies integrating eco-friendly practices such as energy-efficient warehouses and electric fleets. Market competition is further intensified by strategic collaborations, government-backed initiatives, and the expansion of trade networks, fostering innovation and efficiency across the sector. For instance, on June 27, 2024, Gulf Warehousing Company (GWC) launched the Al Wukair Logistics Park Directory in celebration of the United Nations Micro, Small, and Medium-Sized Enterprises (MSMEs) Day. This will help to strengthen MSME growth through innovative, tailored solutions and local partnerships in Qatar's logistics sector. The park covers 1.5 million square meters, offering light industrial workshops, warehousing units, and open yards to meet the diverse warehousing and distribution needs of small and medium enterprises.

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

• Al Madina Logistics
• Al-Futtaim Logistics
• Almajdouie Group
• Aramex
• Asyad
• BAHRI
• DB Schenker
• Deutsche Post DHL Group
• DP World
• DSV A/S
• Gulf Warehousing Company
• JAS Worldwide
• Milaha Group
• Masstrans Freight LLC
• Wared Logistics

Latest News and Developments:

• On January 9, 2024, Odys Aviation and Aramex announced a partnership to develop cargo operations in the United Arab Emirates and Oman. The collaboration aims to introduce autonomous logistics programs utilizing Odys Aviation's hybrid-electric vertical take-off and landing (VTOL) aircraft, enhancing Aramex's regional presence, and providing sustainable shipping options. Initial pilot programs will feature Odys Aviation's Laila aircraft, expanding to the Alta aircraft with payload capabilities up to one ton, pending regulatory approvals. 
• On November 25, 2024, Gulf Warehousing Company (GWC) announced that its subsidiary, GWC Energy Services, signed a Memorandum of Understanding with Saudi Offshore Fabrication Company (OFC) to develop 100,000 square meters of Grade 'A' logistics facilities at Ras Al-Khair Industrial Port in Saudi Arabia. This collaboration aims to enhance storage and logistics capabilities, leveraging GWC's expertise in energy supply chain solutions to optimize facilities for client needs. The partnership aligns with Saudi Arabia's Vision 2030, seeking to establish the Kingdom as a global logistics hub connecting Asia, Africa, and Europe.

GCC Freight and Logistics 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 freight and logistics market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the GCC freight and logistics 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 freight and logistics 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.