United Arab Emirates Courier, Express, and Parcel (CEP) - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2030)

United Arab Emirates Courier, Express, and Parcel (CEP) - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2030)

The United Arab Emirates Courier, Express, and Parcel (CEP) Market size is estimated at 1.20 billion USD in 2024, and is expected to reach 1.91 billion USD by 2030, growing at a CAGR of 8.06% during the forecast period (2024-2030).

The e-commerce segment is driving the CEP market's growth

• E-commerce has been a major growth driver for the domestic and international segments of the market since the pandemic. The largest player was amazon.ae, with a revenue of USD 477.6 million in 2022. It was followed by namshi.com and carrefouruae.com as the second and third-largest stores, with USD 264.8 million and USD 223.2 million, respectively. The top three stores collectively accounted for 35.2% of the top 100 online stores' revenue in the UAE. E-commerce is projected to be valued at USD 13.71 billion by 2027, boosting the market growth significantly.
• Various e-commerce segments drove domestic and international CEP demand during the review period. Of them, the fashion segment accounted for the maximum revenue contribution share in 2021, with 35.44%, amounting to USD 3.64 billion. It was followed by the electronics segment with 20.55% (USD 2.11 billion) and toys, hobby & DIY with 15.77% (USD 1.62 billion). The e-commerce industry had a consumer penetration rate of 69.4% in 2021, an increase of 2.29% YoY from 2020. The explosion of e-commerce compelled most express companies to start a dedicated division offering e-commerce services.​
• The UAE issued a license for flying vehicles for parcel deliveries in 2023. Electric vertical take-off and landing (eVTOL) aircraft are going to be used to deliver parcels across the United Arab Emirates, leading to speedy delivery and receipt of small cargo. This mode of delivery also has significant environmental benefits. RegLab works with the issuance of electric aircraft licenses. It issued a temporary license to test an eVTOL aircraft in the United Arab Emirates. The RegLab license also consists of legal provisions on a temporary basis that seek to advance the country's objective of having net zero emissions by 2050.

United Arab Emirates Courier, Express, and Parcel (CEP) Market Trends

Rising transport infrastructure development leading to growth in industry at CAGR of 8.4% by 2026

• The UAE boosts one of the region's most advanced transport and infrastructure facilities. This encompasses top-tier provisions for roads, metro networks, and maritime transport, pivotal in fostering economic expansion and facilitating business and tourism advancements within the nation. Due to the industry's rapid growth, the UAE logistics market is expected to register a CAGR of more than 8.4% to reach USD 31.4 billion by 2026, providing many opportunities and investment prospects to accelerate digital capabilities in the United Arab Emirates and promoting economic competitiveness and sustainable growth in the region.
• The UAE strategy is expected to deliver an annual of AED 22 billion (USD 5.99 billion) across diverse sectors. This will be achieved through a multi-faceted approach, encompassing reducing transportation expenses, carbon footprints, and accidents. Additionally, the strategy aims to elevate individual productivity while reclaiming hundreds of millions of hours previously squandered in traditional commuting methods.
• This indicates a remarkable 44% reduction in transportation costs, translating to an impressive annual saving of up to AED 900 million (USD 245.01 million). A projected 12% reduction in environmental pollutants stands to result in annual savings of AED 1.5 billion (USD 0.40 billion). Leveraging enhanced transportation efficiency, the strategy is anticipated to generate an annual economic upswing of AED 18 billion (USD 4.90 billion) by optimizing Dubai's transportation sector by 2030. Dubai's Roads and Transport Authority (RTA) is leading the Shindagha Corridor project initiative, which entails crafting a 13 km road network spanning Sheikh Rashid Street, Al Mina, Al Khaleej, and Cairo Streets in Dubai.

Increasing fuel subsidies for low-income households, with USD 7.62 billion allocation to a social support program

• The UAE's oil production in 2022 was expected to be around 2.95 million barrels per day. The Central Bank expected the oil GDP to rise by 8% in 2022 and 5% in 2023 due to the Russia-Ukraine conflict, market recovery post-COVID, and demand/supply factors in the global oil market. Oil prices rose following the Russia-Ukraine conflict, reaching USD100 per barrel. Brent Crude, the globally accepted standard for 66.67% of the world's oil reserves, stabilized at USD140 per barrel in 2022, a 36% increase from the beginning of the year.
• In 2022, diesel pump prices in the UAE have risen by 35%, with a liter costing USD 1.01. High fluctuation price in Diesel in UAE due to currency exchange rates, international crude oil prices, and country demand. It was a 45% increase since June 2021, when oil prices were still recovering from the Covid pandemic crisis's peak. The hike in the diesel price has been matched by further increases in fuel pump prices for petrol blends, including a new price for Super 98 petrol, which costs USD 1.15 per liter, a rise of 36% from January 2022. Better driver training, the latest trailer technology, and alternatives to relying on fossil fuels, such as LNG, CNG, and electric drivelines, are among the solutions for dealing with ongoing fuel cost increases.
• In 2022, the government increased the Social Support Program fuel subsidy for low-income households in the UAE by a significant budget increase. Previously, the total budget of the program was AED 14 billion (USD 3.81 billion), which was increased to AED 28 billion (USD 7.62 billion). The Social Support Program will provide an 85% fuel subsidy for lower-income individuals in the UAE.

United Arab Emirates Courier, Express, and Parcel (CEP) Industry Overview

The United Arab Emirates Courier, Express, and Parcel (CEP) Market is fragmented, with the top five companies occupying 25.84%. The major players in this market are Aramex, DHL Group, FedEx, First Flight Couriers (Middle East) LLC and Postaplus (sorted alphabetically).

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