GCC International Express Service Market Trends

Statistics for the 2023 & 2024 GCC International Express Service market trends, created by Mordor Intelligence™ Industry Reports. GCC International Express Service trend report includes a market forecast to 2030 and historical overview. Get a sample of this industry trends analysis as a free report PDF download.

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Market Trends of gcc international express service Industry

GCC's booming logistics sector, with investments worth billions in infrastructure, fuels economic growth and development

  • In 2022, Saudi Arabia's logistics industry was valued at USD 18 billion, making it a highly appealing emerging market in the GCC. The sector's revenue is projected to grow at a 6.7% CAGR as the government focuses on development. In 2021, around USD 15 billion was invested in Saudi Arabia's infrastructure and transportation projects. The UAE possesses advanced transportation and infrastructure, including roads, metro networks, and maritime facilities, fueling economic growth, business, and tourism.
  • The Logistics Areas Project in Qatar's southern region is set to attract QAR 30 billion (USD 8.17 billion) in direct investments for development, aiming to establish a regional hub for investments and logistics services. Saudi Arabia's ambitious plan involves investing USD 147 billion in transport and logistics infrastructure over eight years, aiming to make the country a major global aviation hub, with around 35% funded by the government and the rest from the private sector.
  • The GCC Railway appears to be reviving, which could transform trade and connectivity across the Gulf. The railway's construction improved regional connectivity significantly by reducing transportation times and costs between major GCC cities and ports, improving trade flows across the bloc, and attracting investments. In 2021, the Saudi Arabian government constructed a new rail infrastructure and invested around SAR 562.66 billion (USD 149.83 billion) in transport and logistics. Saudi Arabia's ongoing rail project is the 1,300 km Land Bridge, which will connect the country's ports on the Red Sea coast to those on the Arabian Gulf. It is expected to cost between USD 7 billion and USD 26 billion when completed in 2026.
GCC International Express Service Market

Approximately 30% of the Middle East's natural gas reserves are held by Qatar

  • In 2022, diesel pump prices in the United Arab Emirates rose by 35%, with a liter costing USD 0.69. This high fluctuation in diesel prices in the United Arab Emirates is due to currency exchange rates, international crude oil prices, and demand. In Qatar, from June 2022 to May 2023, diesel and super-grade petrol prices remained stable, while premium petrol prices fluctuated between QAR 2.05 (USD 0.5) and QAR 1.90 (USD 0.51) per liter. The price increase for diesel has been matched by additional price increases at the gas pump for gasoline blends, including a new price for the well-known Super 98 gasoline, which will now cost 4.15 USD/liter, a 36% increase.
  • The weighted average cost of gas production across the GCC increased by one-third to two-thirds between 2015 and 2030, from USD 1.50 to USD 4.50 per thousand cubic feet in 2015 to USD 2.00-USD 7.00 per thousand cubic feet in 2030. Qatar holds 11% of the world's proven natural gas reserves and almost 30% of the Middle East's reserves. With reserves of crude oil estimated at 25.2 billion barrels in January 2023, Qatar held the 6th largest reserves in the Middle East and the 14th largest in the world.
  • Saudi Arabia has relied heavily on its vast oil reserves as a significant energy source and revenue source. However, the country has recognized the importance of diversifying its energy mix and incorporating renewable sources of energy. In July 2022, Saudi Arabia, the world's largest oil exporter, set a cap on local gasoline prices to help alleviate rising living costs and boost the economy. However, the government has been working to bring domestic fuel prices in line with international levels, part of reforms aimed at easing the burden of subsidies on state finances, improving energy efficiency, and cutting consumption.
GCC International Express Service Market

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

  • Public-private partnerships in GCC countries strengthening the path toward economic diversification
  • The e-commerce industry in the GCC reached USD 22 billion in 2022, supported by GCC government investments in infrastructure
  • GCC economies seek to reduce reliance on oil exports in accordance with several strategic plans
  • UAE soars to 7th globally, Saudi Arabia jumps 17 places to 38th in 2023 logistic performance index
  • GCC countries witness significant increases in prices owing to rising domestic demand and increasing crude oil and food prices
  • Manufacturing's contribution to GDP grew by over 38% YoY in 2022, led by the chemical products sub-sector
  • GCC economies are working toward cutting down burgeoning food imports to strengthen food security

GCC International Express Service Market Report Snapshots