United Arab Emirates Freight And Logistics Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

United Arab Emirates Freight And Logistics Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The United Arab Emirates Freight And Logistics Market size is estimated at USD 15.77 billion in 2023, and is expected to reach USD 21.67 billion by 2028, growing at a CAGR of 6.24% during the forecast period (2023-2028).

Key Highlights

• Among all the Mode Of Transports, Road is the Fastest-growing contributor to the United Arab Emirates Freight And Logistics Market. Road transport is the fastest-growing segment. The country is strengthening its road infrastructure with projects like the USD 2.7 billion Sheikh Zayed double-deck road scheme.
• Domestic is the largest destination type for the United Arab Emirates Freight And Logistics Market. The domestic segment is the largest segment by destination type, supported by the wholesale and retail trade end-user segment, which accounted for a share of 58.2% in 2022.
• The largest end user industry for the United Arab Emirates Freight And Logistics Market is Wholesale and Retail Trade. The wholesale and retail trade is the largest end-user segment boosted by the UAE e-commerce market. The number of retailers in the country was estimated to grow by 20% in 2022.
• Non-Temperature Controlled is the largest Temperature Controls in the United Arab Emirates Freight And Logistics Market. The non-temperature-controlled segment recorded a higher revenue contribution during the review period. However, the percentage share decreased from 87.5% in 2017 to 86.6% in 2021.
• The growth rate of Temperature Controlled segment indicates that it is the Fastest-growing Temperature Controls. The temperature-controlled segment is boosted by the pharmaceutical sector, which is expected to grow by 27% between 2021 and 2025 as the country aims to become a regional pharmaceutical center.

UAE is focusing on investment in the transportation and storage sectors

• According to the World Competitiveness Report in 2019, the United Arab Emirates ranks first in transportation infrastructure and ninth in air transport infrastructure quality. In 2018, the transport and storage sector was the second-largest contributor to GDP, accounting for AED 152.4 billion (USD 41.48 billion), or 12.3%. According to the sectoral distribution of GDP at constant prices for 2019, various non-oil sectors accounted for 70.2% of the real GDP, while the oil sector contributed 29.8%. The wholesale and retail trade and vehicle repair sector accounted for the largest share of non-oil sectors, accounting for 12.5% of real GDP, and the transportation and storage sector at 5.7%.
• The transport and storage sector accounted for 2.5 percentage points, or more than half, of Dubai's GDP growth during the first nine months of 2022, which was 4.6 percentage points. Transportation and road infrastructure development remain critical across the country. The United Arab Emirates is working on several transportation and road infrastructure projects, including the USD 2.7 billion Sheikh Zayed double-deck road scheme. There are more unusual transportation projects, such as the proposed USD 5.9 billion hyperloop project between Dubai and Abu Dhabi. However, Virgin Hyperloop announced that it would launch its commercial service in the United Arab Emirates within the next 3-4 years rather than by 2030, as previously planned.
• 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.

United Arab Emirates Freight And Logistics Industry Overview

The United Arab Emirates Freight And Logistics Market is fragmented, with the top five companies occupying 4.74%. The major players in this market are Deutsche Post DHL Group, Globelink West Star Shipping LLC, Gulf Agency Company (GAC), Kuehne + Nagel and Momentum Logistics (sorted alphabetically).

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support