United Arab Emirates Freight And Logistics Market Size

United Arab Emirates Freight And Logistics Market Analysis

The United Arab Emirates Freight And Logistics Market size is estimated at 20.11 billion USD in 2024, and is expected to reach 30.19 billion USD by 2030, growing at a CAGR of 7.01% during the forecast period (2024-2030).

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20.11 Billion

Market Size in 2024 (USD)

30.19 Billion

Market Size in 2030 (USD)

5.43 %

CAGR (2017-2023)

7.01 %

CAGR (2024-2030)

Fastest Growing Market by Mode of Transport

9.07 %

Projected CAGR, Sea and Inland Waterways, 2024-2030

In September 2022, the government launched the "UAE Maritime Network" initiative. This move aims to bolster international maritime collaborations, position the country as a premier global maritime hub,

Largest CEP Market by Destination

65.36 %

value share, Domestic, 2023

The domestic segment has benefited tremendously as e-commerce started to grow in the country after the pandemic. More companies started a dedicated division for e-commerce services.​

Largest Market by End User Industry

28.85 %

value share, Wholesale and Retail Trade, 2023

The e-commerce sector in the UAE experienced a YoY growth of 3% in 2023. The growth in e-commerce sales boosted the growth of the end-user industry.

Largest Warehousing Market by Temperature Control

90.11 %

value share, Non-Temperature Controlled, 2023

In H1 2023, Dubai witnessed a surge in demand for industrial and logistical spaces. This surge was driven by both companies shifting their operations to Dubai and a notable uptick in local manufacturing.

Fastest Growing Warehousing Market by Temperature Control

8.10 %

Projected CAGR, Temperature Controlled, 2024-2030

The pharmaceutical sector is expected to grow by 27% between 2021 and 2025 as the country aims to become a regional pharmaceutical center. This is expected to drive the segment's growth.

Rising investments in road, rail, and sea transportation projects boosting freight service demand in UAE

United Arab Emirates Freight And Logistics Industry Segmentation

Agriculture, Fishing, and Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, Wholesale and Retail Trade, Others are covered as segments by End User Industry. Courier, Express, and Parcel (CEP), Freight Forwarding, Freight Transport, Warehousing and Storage are covered as segments by Logistics Function.

• Electric and autonomous trucks are gaining traction in the UAE's road freight sector, which is the dominant mode of transportation. In May 2023, Einride, a prominent player in electric and autonomous freight solutions, partnered with the UAE Ministry of Energy and Infrastructure (MOEI). The collaboration aims to introduce Einride's extensive range of electric and autonomous technologies, spanning over 550 km in the UAE. As part of this deal, Einride will deploy 2,000 electric trucks, 200 autonomous trucks, and establish 8 charging stations with over 500 charging points. This strategic move not only signifies a significant milestone in the road freight industry but also underscores the sector's commitment to both sustainability and cutting-edge innovations.
• The UAE has placed significant emphasis on developing its railway infrastructure in recent years. In March 2023, the country inaugurated its national railway network, Etihad Rail, spanning an impressive 900 km. The network is now operational for cargo trains, connecting all the Emirates. The fleet consists of 38 locomotives and over 1,000 wagons, designed to efficiently transport a wide range of goods. The primary route of the UAE National Railway Network stretches from Ghuweifat, on the Saudi Arabian border, to Fujairah, traversing diverse geographical landscapes.
• In the 2022 BRIDI rankings, the UAE slipped two spots to secure the 10th position with a score of 117. Recently, the nation has launched various initiatives to bolster its global partnerships and economic standing. One such initiative is "We the UAE 2031," which focuses on enhancing government efficiency and digital infrastructure. Kezad (UAE) is currently home to more than 26 Chinese projects, attracting a substantial investment of USD 545 million.