GCC Courier, Express, and Parcel (CEP) Market Size

The GCC Courier, Express, and Parcel (CEP) market is experiencing significant growth, driven primarily by the expansion of e-commerce in the region. The market's scale is influenced by the increasing demand for parcel shipments, particularly in Saudi Arabia and the United Arab Emirates, where innovative delivery methods, such as flying vehicles, are being introduced to enhance efficiency. Despite challenges like inadequate warehousing infrastructure and last-mile delivery issues, the market's capacity is being bolstered by the establishment of new fulfillment centers. This growth trajectory is supported by the rising e-commerce user penetration and the strategic initiatives of key players in the region.

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Market Size of gcc courier, express, and parcel (cep) Industry

GCC Courier, Express, and Parcel (CEP) Market Summary
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svg icon Study Period 2017 - 2030
svg icon Market Size (2024) USD 3.60 Billion
svg icon Market Size (2030) USD 5.52 Billion
svg icon Largest Share by Destination Domestic
svg icon CAGR (2024 - 2030) 7.38 %
svg icon Largest Share by Country Saudi Arabia

Major Players

GCC Courier, Express, and Parcel (CEP) Market Major Players

*Disclaimer: Major Players sorted in no particular order

Key Players

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GCC Courier, Express, and Parcel (CEP) Market Analysis

The GCC Courier, Express, and Parcel (CEP) Market size is estimated at 3.60 billion USD in 2024, and is expected to reach 5.52 billion USD by 2030, growing at a CAGR of 7.38% during the forecast period (2024-2030).

3.60 Billion

Market Size in 2024 (USD)

5.52 Billion

Market Size in 2030 (USD)

6.03 %

CAGR (2017-2023)

7.38 %

CAGR (2024-2030)

Fastest Growing Market by Speed of Delivery

8.24 %

Projected CAGR, Express, 2024-2030

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E-commerce and logistics players are moving toward providing same-day delivery services due to rising demand, which is significantly driving the growth of express delivery.

Fastest Growing Market by Model

9.58 %

Projected CAGR, Business-to-Consumer (B2C), 2024-2030

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The B2C segment is generating major parcel delivery demand due to increasing domestic and cross-border e-commerce in the region.

Largest Market by Shipment Weight

55.50 %

value share, Light Weight Shipments, 2023

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Online orders for goods like fashion items, medicines, and personal care products are driving the delivery demand for lightweight parcels in the region.

Largest Market by End User Industry

42.92 %

value share, E-Commerce, 2023

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E-commerce in the region is driven by an acceleration in online shopping, led by favorable government policies, affordability, and convenience of shopping from home.

First leading Market player

13.34 %

market share, Aramex, 2022

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Aramex has an employee size of 6,560 employees in the GCC region. In 2022, it added new micro hubs and introduced new double-trail trucks in the GCC region.

Digital and technological advancements driving CEP industry growth in the region

  • E-commerce has been a major driver for CEP growth in Saudi Arabia. The biggest player in the e-commerce market is extra.com, recording a revenue of USD 278.3 million in 2022. It was followed by amazon.sa and nahdionline.com, with revenues of USD 242 million and USD 211.6 million, respectively. Collectively, the top 3 stores accounted for 31.8% of the top 100 online stores' revenue in Saudi Arabia in 2022. With e-commerce user penetration projected to touch 73% by 2027, the Saudi Arabian CEP market is expected to grow significantly.
  • UAE began issuing flying parcel delivery vehicle licenses in 2023. Vertical takeoff and landing (eVTOL) aircraft are going to be used to deliver parcels across the country, which potentially could lead to speedy sending and receiving, specifically of small cargo, while also ensuring environmental benefits. RegLab works with the issuance of the electric aircraft license and issues a temporary license to test electric vertical takeoff in UAE. The RegLab license is also in line with legal provisions that advance the country's objective of having net zero emissions by 2050.
  • Qatar Post, the national postal service, delivered 779,000 postal items domestically and internationally in 2021. A digital archiving system was implemented by Qatar Post to ensure efficient and high-quality services. The company released a receipt and delivery application with facilities like requests for receipt and delivery made using the app and submission of inquiries through online chat or WhatsApp. Incoming client calls decreased by 20% as a result of this. Also, 80,000 messages were received, and 30,000 fresh addresses were gathered.
GCC Courier, Express, and Parcel (CEP) Market

Regional market is driven by the adoption of drone deliveries, digital automated warehouses and distribution centres

  • The parcel volume in the region has witnessed growth driven mainly by a surge in e-commerce-led parcel shipments. Regional e-commerce has grown at a CAGR of 25% during 2017-2021. Saudi Arabia, the United Arab Emirates, Qatar, Oman, Bahrain, and Kuwait comprise the CEP market in the GCC region. Major courier players in the region comprise DHL, FedEx, Oman Post, Bahrain Post, Muscat Post, Saudi Post, Qatar Post, and Emirates Post.
  • In 2023, Kuwait's Ministry of Communications launched a new service to deliver express mail and parcels to homes exceptionally to the Al-Masayel Post Center. Qatar Post is a leading player that facilitates parcel services weighing up to 30 kg through its largest vehicle fleet in the country, comprising vehicles ranging from motorbikes to large trucks. Through its online shopping delivery service, Connected, Qatar Post enables overseas e-commerce purchases and delivery across industries like technology and lifestyle.
  • The region faces certain challenges in meeting the warehousing and fulfillment needs of the CEP market, such as a lack of modern warehousing infrastructure, especially in the smaller towns and villages, to cope with a surge in the demand generated by the market. The inefficient last-mile delivery and cash-driven economy are other challenges affecting the market's growth. However, several players have been establishing fulfillment centers in the region. For instance, in 2022, the Saudi Authority for Industrial Cities and Technology Zones signed an agreement to establish 14 digital automated warehouses. In 2023, Amazon launched its new FC, increasing its total storage capacity in the United Arab Emirates by 70%. In 2022, e-commerce retailer Noon announced its aim of launching a 252,000 sq. meter fulfillment center facility.

GCC Courier, Express, and Parcel (CEP) Industry Segmentation

Domestic, International are covered as segments by Destination. Express, Non-Express are covered as segments by Speed Of Delivery. Business-to-Business (B2B), Business-to-Consumer (B2C), Consumer-to-Consumer (C2C) are covered as segments by Model. Heavy Weight Shipments, Light Weight Shipments, Medium Weight Shipments are covered as segments by Shipment Weight. Air, Road, Others are covered as segments by Mode Of Transport. E-Commerce, Financial Services (BFSI), Healthcare, Manufacturing, Primary Industry, Wholesale and Retail Trade (Offline), Others are covered as segments by End User Industry. Qatar, Saudi Arabia, UAE are covered as segments by Country.

  • E-commerce has been a major driver for CEP growth in Saudi Arabia. The biggest player in the e-commerce market is extra.com, recording a revenue of USD 278.3 million in 2022. It was followed by amazon.sa and nahdionline.com, with revenues of USD 242 million and USD 211.6 million, respectively. Collectively, the top 3 stores accounted for 31.8% of the top 100 online stores' revenue in Saudi Arabia in 2022. With e-commerce user penetration projected to touch 73% by 2027, the Saudi Arabian CEP market is expected to grow significantly.
  • UAE began issuing flying parcel delivery vehicle licenses in 2023. Vertical takeoff and landing (eVTOL) aircraft are going to be used to deliver parcels across the country, which potentially could lead to speedy sending and receiving, specifically of small cargo, while also ensuring environmental benefits. RegLab works with the issuance of the electric aircraft license and issues a temporary license to test electric vertical takeoff in UAE. The RegLab license is also in line with legal provisions that advance the country's objective of having net zero emissions by 2050.
  • Qatar Post, the national postal service, delivered 779,000 postal items domestically and internationally in 2021. A digital archiving system was implemented by Qatar Post to ensure efficient and high-quality services. The company released a receipt and delivery application with facilities like requests for receipt and delivery made using the app and submission of inquiries through online chat or WhatsApp. Incoming client calls decreased by 20% as a result of this. Also, 80,000 messages were received, and 30,000 fresh addresses were gathered.
Destination
Domestic
International
Speed Of Delivery
Express
Non-Express
Model
Business-to-Business (B2B)
Business-to-Consumer (B2C)
Consumer-to-Consumer (C2C)
Shipment Weight
Heavy Weight Shipments
Light Weight Shipments
Medium Weight Shipments
Mode Of Transport
Air
Road
Others
End User Industry
E-Commerce
Financial Services (BFSI)
Healthcare
Manufacturing
Primary Industry
Wholesale and Retail Trade (Offline)
Others
Country
Qatar
Saudi Arabia
UAE
Rest of GCC
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GCC Courier, Express, and Parcel (CEP) Market Size Summary

The GCC Courier, Express, and Parcel (CEP) market is experiencing significant growth, driven primarily by the surge in e-commerce activities across the region. Saudi Arabia stands out as a major contributor to this growth, with leading e-commerce platforms like extra.com, amazon.sa, and nahdionline.com dominating the market. The increasing penetration of e-commerce users is expected to further boost the CEP sector. Innovations such as the introduction of flying parcel delivery vehicles in the UAE and the implementation of digital solutions by Qatar Post highlight the region's commitment to enhancing logistics and delivery services. Despite challenges like inadequate warehousing infrastructure and inefficient last-mile delivery, the market is witnessing investments in fulfillment centers and advanced logistics solutions, positioning the GCC as a burgeoning hub for CEP services.

The market landscape is characterized by a mix of established players and emerging technologies, with companies like DHL, FedEx, and Aramex leading the charge. The region's strategic investments in transport and logistics infrastructure, such as Saudi Arabia's ambitious rail projects and the UAE's advanced transportation networks, are set to enhance connectivity and trade flows. Additionally, the GCC's focus on sustainability, as seen in initiatives aimed at reducing emissions, aligns with global trends towards greener logistics solutions. The market's fragmentation, with major players holding a significant share, indicates a competitive environment where innovation and strategic partnerships, like UPS's collaboration with Google Cloud, are crucial for maintaining market leadership.

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GCC Courier, Express, and Parcel (CEP) Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes Market Value in USD, Forecasts up to 2030 and analysis of growth prospects)

    1. 1.1 Destination

      1. 1.1.1 Domestic

      2. 1.1.2 International

    2. 1.2 Speed Of Delivery

      1. 1.2.1 Express

      2. 1.2.2 Non-Express

    3. 1.3 Model

      1. 1.3.1 Business-to-Business (B2B)

      2. 1.3.2 Business-to-Consumer (B2C)

      3. 1.3.3 Consumer-to-Consumer (C2C)

    4. 1.4 Shipment Weight

      1. 1.4.1 Heavy Weight Shipments

      2. 1.4.2 Light Weight Shipments

      3. 1.4.3 Medium Weight Shipments

    5. 1.5 Mode Of Transport

      1. 1.5.1 Air

      2. 1.5.2 Road

      3. 1.5.3 Others

    6. 1.6 End User Industry

      1. 1.6.1 E-Commerce

      2. 1.6.2 Financial Services (BFSI)

      3. 1.6.3 Healthcare

      4. 1.6.4 Manufacturing

      5. 1.6.5 Primary Industry

      6. 1.6.6 Wholesale and Retail Trade (Offline)

      7. 1.6.7 Others

    7. 1.7 Country

      1. 1.7.1 Qatar

      2. 1.7.2 Saudi Arabia

      3. 1.7.3 UAE

      4. 1.7.4 Rest of GCC

GCC Courier, Express, and Parcel (CEP) Market Size FAQs

The GCC Courier, Express, and Parcel (CEP) Market size is expected to reach USD 3.60 billion in 2024 and grow at a CAGR of 7.38% to reach USD 5.52 billion by 2030.

In 2024, the GCC Courier, Express, and Parcel (CEP) Market size is expected to reach USD 3.60 billion.

GCC Courier, Express, and Parcel (CEP) Market Report Snapshots