Middle East & Africa Freight Forwarding Market Outlook, 2029

Middle East & Africa Freight Forwarding Market Outlook, 2029

The freight forwarding market in the Middle East and Africa is one of the fastest-growing into prominence, impelled by a location at the fulcrum of global trade routes, rich natural resources, and budding economic potential. Changes in the freight forwarding market of the Middle East and Africa have occurred in leaps and bounds, wherein regional economic dynamics and global trends in trade have had their role to play. Historically, it has been the oil-and-gas boom in the Middle East that set this sector in motion with major logistics hubs like Dubai and Abu Dhabi growing as a result. Most recently, the Suez Canal expansion and investment in ports have created an even greater gateway for the region's positioning with respect to global maritime trade. Freight forwarding in Africa was initially hindered by underdeveloped infrastructure and political instability. The last decades have been hallmarked by evident improvements, including rising foreign investment and economic reforms that influenced the development of key transport corridors and logistics hubs. One of these developments is the African Continental Free Trade Area, most particularly aimed at enhancing intra-African trade in terms of efficiency in logistics. Infrastructure development is among the key drivers of the freight forwarding market across the MEA region. Major investments in connectivity include those done to ports, airports, and transportation networks to underpin trade activity. In the Middle East, expansion of ports such as Jebel Ali in Dubai and King Abdullah Port in Saudi Arabia ensures that the region is certainly on its way to becoming a world logistics hub. Indeed, logistics parks and free trade zones have been developed to facilitate trade and further attract international logistics companies. Attention is being paid to the development of port facilities, road networks, and rail systems in order to increase the efficiency of trade as a means for the economy to expand in Africa. A few of the major investments made in infrastructure towards improving regional connectivity and logistic capabilities include projects such as the Addis Ababa-Djibouti Railway and the LAPSSET Corridor. Increased use of digital transformation and innovation is likely to bring more efficiency and service quality improvements in MEA's freight forwarding market.

According to the research report ""Middle-East & Africa Freight Forwarding Market Overview, 2029,"" published by Bonafide Research, the Middle-East & Africa Freight Forwarding market is anticipated to add to more than USD 2 Billion by 2024–29.Digital platforms for freight management, automated booking systems, and data analytics are gaining prominence. Innovations such as blockchain for secure and transparent transactions, and IoT for monitoring shipments in real-time, are changing the way logistics works. Notably, Middle East is focused on implementing the latest technologies to improve logistic performance in view of smart city initiatives. Whereas in Africa, with a growing but developing digital adoption, there are efforts to make use of technology in order to overcome logistic challenges and enhance the delivery of services. The MEA region shows more concern about the impact on the environment and to society by freight forwarding activity. There is a growing awareness of the effect of logistics operations on the environment. Many firms are investing in sustainability through energy-efficient vehicles, alternative fuels, and waste reduction measures. Freight forwarding, from a social point of view, forms the backbone when it comes to job creation and economic development. Ensuring that companies are able to treat labor fairly by considering issues such as improving working conditions is one major issue they try to meet while operating in the region. Policies and activities related to environmental sustainability and social responsibility in logistics become of great concern to governments and organizations. Freight forwarders find new opportunities in the emerging markets of the MEA region. Among these regions, there are countries like Ethiopia, Ghana, and Rwanda, developing economically at a fast pace and making effort to improve their logistic infrastructure. In line with this, these emerging markets will bring prospects for growth and investment in freight forwarding services. In the Middle East, nations such as Saudi Arabia and Oman are developing their logistic sectors as an element of more general strategies for economic diversification. Creation of new trade routes, infrastructure projects like Saudi Vision 2030, and expansion of the Suez Canal bring new prospects for freight forwarders.

Market Drivers
• Economic Diversification: In the Middle East, countries like the UAE and Saudi Arabia are diversifying their economies beyond oil, investing heavily in sectors like logistics and trade. These diversification efforts drive the demand for advanced freight forwarding services to support new industries and trade routes, positioning the region as a global logistics hub. The development of free trade zones, logistics parks, and multimodal transport infrastructure enhances the region’s logistics capabilities. Investments in technology and innovation further support the growth of the logistics sector, attracting international companies and fostering economic development.
• Increased Trade Volumes: The strategic location of the MEA region, connecting major trade routes between Asia, Europe, and Africa, boosts trade volumes. Investments in ports, airports, and free trade zones enhance the region’s logistics capabilities. The growth in trade volumes necessitates efficient freight forwarding services to manage the increased flow of goods. The development of major logistics hubs, such as Dubai’s Jebel Ali Port and the King Abdullah Economic City in Saudi Arabia, strengthens the region’s position as a key player in global trade. Enhanced connectivity and streamlined customs procedures further facilitate trade and drive demand for logistics services.

Market Challenges
• Geopolitical Instability: The MEA region is often affected by geopolitical tensions and conflicts, which disrupt logistics operations. Freight forwarders must navigate volatile political landscapes, which can lead to unexpected delays, route changes, and increased security concerns, impacting the reliability of logistics services. Geopolitical instability can result in border closures, changes in trade policies, and fluctuations in currency exchange rates, creating challenges for logistics planning and execution. Freight forwarders must develop contingency plans, diversify supply routes, and maintain flexibility to mitigate the impact of geopolitical risks on their operations.
• Regulatory Variability: The diverse regulatory environment across the MEA region presents challenges for freight forwarders. Differing customs procedures, trade policies, and compliance requirements across countries complicate logistics operations. Companies must continuously adapt to varying regulations to ensure smooth cross-border trade. The lack of harmonized standards and regulations increases administrative burdens and operational costs. Freight forwarders must invest in regulatory compliance management, develop expertise in local customs procedures, and establish strong relationships with regulatory authorities to navigate the complex regulatory landscape effectively.

Market Trends
• Adoption of Smart Technologies: The MEA region is increasingly adopting smart logistics technologies to enhance supply chain efficiency. The use of IoT, AI, and blockchain in logistics operations improves transparency, reduces costs, and enhances the tracking and management of goods. Smart technologies are transforming the logistics landscape, making operations more efficient and reliable. IoT devices provide real-time monitoring of shipments, ensuring timely delivery and reducing the risk of theft or damage. AI-driven analytics optimize route planning, demand forecasting, and inventory management, improving operational efficiency. Blockchain technology enhances security and transparency in the supply chain, ensuring tamper-proof documentation and reducing administrative burdens.
• Infrastructure Development: Significant investments in infrastructure development, such as the expansion of ports, airports, and road networks, are transforming the logistics landscape in the MEA region. These infrastructure projects enhance connectivity and capacity, facilitating smoother and more efficient freight forwarding operations. The development of logistics hubs and free trade zones further boosts the region’s attractiveness for global trade. Improved infrastructure supports economic growth, enhances trade connectivity, and reduces logistics costs. Public-private partnerships and government initiatives focused on infrastructure development play a crucial role in addressing infrastructure gaps and supporting the growth of the logistics sector in the MEA region.

The industrial and manufacturing sectors dominate the freight forwarding market of the MEA region because the latter geographical location, huge infrastructure investments, and huge trade volumes flowing through the region make it a cog in the wheel for global trade routes.

The region of the Middle East and Africa has emerged as a major center for freight forwarding due to its geographical location, as it links the major continents together. This again forms the fulcrum of global trade routes. The industrial and the manufacturing sectors of this region have utilized this geographical advantage by facilitating efficient distribution and logistics operations in Europe, Asia, and the African region. The various volumes of cargo could be handled with ease and speed due to extensive investments in supporting infrastructure that has included world-class ports, free zones, and state-of-the-art logistics parks. These include the expansion of Dubai's Jebel Ali Port to become one of the busiest and most advanced container ports in the world, and the construction of King Abdullah Economic City in Saudi Arabia with ultra-modern logistics facilities. These infrastructural developments facilitate smooth supply chain operations, invite multinational companies, and increase the competitive edge of this region vis-à-vis the global market. The government initiatives and policies relating to economic diversification and promotion of non-oil sectors have spurred growth in manufacturing activities, thus boosting demand for sophisticated freight-forwarding services.

The MEA freight forwarding market is dominating the transportation and warehousing segment due to massive investments in the region's logistics infrastructure and strategic moves to improve connectivity and warehousing.

Geographically, MEA is located at the junction of major international trade routes, serving as a natural bridge for goods movements across Asia, Europe, and Africa. At the strategic level, this position has propelled governments and private investors into putting investment in transportation networks involving roadways, railways, ports, and airports that integrate goods movements. Probably one of the most remarkable examples is the setting up of world-class ports, such as Jebel Ali Port in Dubai, currently ranking among the busiest and most modern container ports in the world. Next in the lineup is the Suez Canal expansion in Egypt, with a dramatic reduction of transit times for maritime cargo and further entrenching the region's status as a nodal point for global shipping. These harbors are backed by advanced airports, including Dubai International Airport and Hamad International Airport in Qatar, which double as significant air freight hubs that move a vast volume of cargo around the globe speedily and efficiently. The warehousing sector has equally experienced the aforesaid rapid growth to supplement the expanding transport systems. There are ultramodern warehousing facilities developed to suit the requirements of industries such as retail, manufacturing, and pharmaceuticals by employing state-of-the-art technologies from fully automated storage and retrieval systems to temperature-controlled rooms and complete real-time inventory management. Free zones and logistics parks, such as Dubai South and the King Abdullah Economic City, are offering one-stop-shop solutions to integrate warehouses, transportation, and value-added services into a seamless logistics experience for the enterprise operating in the region. Government policies and initiatives have accelerated the growth of infrastructure associated with transportation and warehousing. The visionary programs, such as Saudi Arabia's Vision 2030 and the UAE's National Logistics Strategy, aimed at diversifying the economy and reducing its dependence on oil revenues by developing the logistics sector, involved the establishment of new logistic hubs, modernization of the already existing facilities, and putting in place regulatory frameworks that would help ease trade and investment.

The ocean freight forwarding segment leads the freight forwarding market in MEA, as it plays this dual role of being a strategic maritime region connected by a large network of ports and acting as a significant transit point for most international shipping routes.

The MEA region is triangulated around some of the world's most important shipping lanes, with the Suez Canal and the Persian Gulf. This makes it perfectly positioned in terms of geographical convenience for the efficient movement of goods between Europe, Asia, and Africa, hence forming an integral part of global maritime trade. One of the major forces behind ocean freight forwarding dominance in MEA is the proper development and expansion of major port facilities. For example, Jebel Ali Port in Dubai is one of the largest and busiest ports in the world, having very advanced facilities to handle huge volumes of container traffic. Similarly, the deep-water, high-capacity characteristics of the Port of Sohar in Oman and the Port of Salalah in Oman have elevated their significance as sources for commerce with East Africa and South Asia. The widening of the Suez Canal in Egypt has further increased the maritime logistics potential of the region, which now accommodates larger vessels and reduces transit times between the Mediterranean and Red Seas. The expansion has placed Egypt in the role of a key gateway in international trade routes, increasing the sea freight operation's effectiveness and consolidating the leadership of this region. The growth of FTZs/SEZs in the MEA region has been very important for ocean freight forwarding. These zones have offered businesses, similar to Dubai Logistics City, customs benefits, streamlined logistics processes, and increased connectivity to key ports. They act as major distribution centers where goods are best handled and redistributed around the region and other countries. The rapidly increasing energy resources demands have boosted the maritime logistics services growth, especially the exports of oil and gas from the Middle East and African region. Major exporters of such commodities include Saudi Arabia, the United Arab Emirates, and Qatar. Sea transportation is the most used mode of transport for such energy exports. Thus, the substantial volume of energy exports emphasizes the importance of ocean freight forwarding in the region.

The B2B segment held the largest share in the MEA freight forwarding market due to robust industrial growth, large trade networks, and an increasingly complex supply chain that demands specialized logistics solutions.

Rapidly growing economies and industrial sectors characterize the Middle East and Africa region, which calls for advanced logistics solutions that B2B freight forwarders are best positioned to offer. This industry leadership is driven by several factors, which include the strategic positioning of the region as an international trade hub, huge investments in infrastructure, and changing business demands from players dealing with large-scale trade and production. The MEA region represents the confluence point of major international trade routes that interlink Europe, Asia, and Africa. It strengthens this role as a vital conduit for world trade and, therefore, increases the demand for B2B specialized logistics services. For instance, Dubai, a leading global trade hub, has developed an elaborate infrastructure with advanced ports like Jebel Ali and expansive networks of logistics parks and free zones. Such infrastructure caters to a large portion of the B2B transactions, efficiently handling and moving goods between businesses across continents. Industrial growth in the MEA region, especially in the petroleum and gas, manufacturing, and construction industries, has boosted the demand for B2B freight forwarding services. Major industrial expansion was experienced in countries like Saudi Arabia and the UAE, complicating the supply chains and the need for customized logistics solutions. For example, the development of mega-projects such as Saudi Arabia's Vision 2030, focused on diversifying the kingdom's economy from a dependence on oil has invested in infrastructure and manufacturing. This has created more demand for B2B freight forwarding services that better handle complex logistics connected with sourcing, transporting, and distributing goods and materials. The intricacies of the modern-day supply chain have contributed their share to the growth in the significance of B2B freight forwarding. Companies are engaged in running very complex supply chain operations across the MEA region that call for special handling, coordination, and management. B2B freight forwarders offer customized solutions to manage such supply chains, including customs clearance, warehousing, and distribution services. Their expertise is in handling freights efficiently and in compliance with customs, reducing delays and optimizing logistics processes.

Saudi Arabia drives the freight forwarding market in the MEA region due to its strategic geographic location, heavy investment in infrastructure, and ambitious plans of economic diversification that drive vast logistics and trade activities.

Sitting at the junction of major trade routes that link Europe, Asia, and Africa, Saudi Arabia turns into a regional and international logistics hub. This acts as a significant geographic advantage that makes the country a major transit country for goods moving across these continents, thereby enhancing its role within the global supply chain. Major investments in the infrastructure have further crystalized Saudi Arabia's leading position in the freight forwarding market. The country has indulged in many projects developing and modernizing logistic and transportation networks by including sea, air, and rail connectivity. Some of the notable port infrastructures in the country include the King Abdulaziz Port in Dammam and the Jeddah Islamic Port, designed to load heavy cargo and efficiently execute trade operations; their extension and modernization increased their capacity and efficiency, improving the handling and transit time of cargo. Together with port developments, Saudi Arabia is making huge investment in its rail network, targeting improved connectivity both internally and regionally. The Saudi Landbridge another mega rail initiative will link up the Red Sea coast to the Arabian Gulf, increasing the country's potential logistics with an effective way to move goods. Saudi Arabia is dominating in the freight forwarding market, that is because of the impetus for its Vision 2030. Indeed, such a bold plan for economic diversification would certainly bring down the country's dependence on oil and guarantee growth in non-oil sectors like logistics and manufacturing. But part of Vision 2030 is Saudi Arabia's developing logistics hubs and free zones like the King Abdullah Economic City and Saudi Arabian Logistics Hub, seeking foreign investment and giving a doorway to international trade. This kind of destination will turn into an attractive location for worldwide business because it has characterized an integrated solution by zones, easing customs processes, warehousing, and distribution.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Freight Forwarding market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By End-User
• Industrial & Manufacturing
• Retail and E-commerce
• Automotive
• Consumer Goods
• Healthcare
• Others

By Service Type
• Transportation and Warehousing
• Packaging
• Documentation
• Value-added Services

By Transport Mode
• Ocean Freight forwarding
• Air Freight forwarding
• Road Freight forwarding
• Rail Freight forwarding

By Customer Type
• B2B
• B2C

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Freight Forwarding industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.

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