The GCC Warehousing and Distribution Logistics Market size is estimated at USD 15.80 billion in 2024, and is expected to reach USD 22.72 billion by 2029, growing at a CAGR of 7.54% during the forecast period (2024-2029).
There has been an increase in warehousing demand in GCC countries due to huge investments by the companies for their inventory storage and logistics market-driven by e-commerce. Technology advancement is also supporting market growth.
The GCC e-commerce market is expanding with increasing competition, driven primarily by the UAE. Saudi Arabia is expected to remain the largest and fastest-growing e-commerce market in the region, with the consumer electronics and fashion categories witnessing the highest demand. The GCC region has a high spending potential in line with its high per capita income. Additionally, internet penetration and social media penetration are also among the best globally, meaning that the GCC is ready for strong growth in the e-commerce market.
According to industry reports, customers in Saudi Arabia are turning more frequently to their digital devices and are spending more time and money online. About 91% of Saudi customers currently shop online, according to the study. As the opportunity to buy an ever-wider choice of goods and services becomes increasingly fundamental to their everyday life, it is perhaps even more striking that a startling 14% of them say they shop online at least once each day.
E-commerce in Saudi Arabia has exploded as the country works toward Vision 2030, a comprehensive plan aimed at transforming the country into a knowledge-based economy. Online sales have surged by about 60% on an annual basis across all categories, with e-commerce holding the highest position for media products, clothes, and footwear.
The GCC warehousing and distribution logistics market is moderately fragmented and highly competitive, with major international and domestic players. The major players include DHL Group, Agility Logistics, GWC (Gulf Warehousing Company), DB Schenker Logistics, UPS, and many others. With a few players holding a significant share, the market has a detectable level of consolidation. With increasing competition from global service providers, logistics service providers need to focus on improving operational efficiency and optimizing the performance of assets to stay ahead of the competition.
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