UAE Logistics Market: Overcoming Challenges, Driving Growth, and Expanding Opportunities

UAE Logistics Market: Despite COVID-19 impact, strong infrastructure, rising trade, and diversification plans fuel growth in freight forwarding and 3PL sectors.
By: Makreo Research and Consulting
JEBEL ALI, UAE - May 24, 2023 - PRLog -- The UAE logistics market experienced steady growth with a CAGR of 2.1% from 2017 to 2020. However, the year 2020 witnessed a significant decline of -3.5% in revenue, largely impacted by the COVID-19 pandemic's effect on supply chain operations. Despite this setback, the UAE continues to invest in improving its road, rail, maritime, and air transport infrastructure, positioning itself for a strong recovery in the logistics industry.

Strong Seaports Capacity and Trade Connectivity
The UAE boasts two of the world's top 50 container ports, with Dubai ranking among the top ten, as recognized by the World Shipping Council. The country's seaports handle 61% of cargo bound for GCC countries and have 12 commercial trading ports with a combined cargo capacity of 80 million tons and 310 berths.

Rising Demand in Freight Forwarding and 3PL Sectors
The freight forwarding market has witnessed substantial expansion, driven by the rising retail and FMCG industries in the UAE. The 3PL market was valued at USD 4.87 billion in 2019, projected to grow at a compounded rate of 11.57% during the forecast period. Major players and the expansion of global trade, particularly in non-oil sectors, have contributed to this growth.

Key Growth Drivers
The UAE's logistics sector benefits from diversification plans, regional trade accessions, and ongoing industry expansion and upgrades in Dubai. The demand for pharmaceuticals has fueled the need for enhanced logistics services, leading to the establishment of dedicated facilities at major airports. Rising trade volumes, with Dubai's foreign trade increasing by 10% in Q1 2021, further contribute to the sector's growth.

Market Segmentation and Scope of the Study
The market is segmented by mode of logistics, with sea freight dominating, followed by air freight and land freight supporting domestic movements. The report, "UAE Logistics and Freight Forwarding Industry COVID-19 Impact and Outlook to 2025," provides a comprehensive analysis of market dynamics, the impact of COVID-19, and future growth opportunities. It includes an assessment of the country's economy, infrastructure, and competitive landscape, featuring key players such as Deutsche Post DHL Group, United Parcel Service Inc, and more.

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UAE Logistics and Freight Forwarding Industry COVID-19 Impact and Outlook to 2025 (

Meetu Bhasin
Source:Makreo Research and Consulting
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