Logistics industry in GCC - statistics & facts
The logistics industry has become a critical lifeline in the global economy, especially during the COVID-19 pandemic, which highlighted the importance of efficient supply chains amid widespread disruptions. As online shopping surged, logistics firms capitalized on the rising demand for freight and commodities, with the global logistics market forecasted to exceed 14 trillion euros by 2028. The COVID-19 pandemic caused significant challenges for logistics service providers, including supply chain interruptions and soaring ocean freight costs. However, logistics firms adapted by investing in technology and infrastructure to meet the increasing demand for efficient transportation and delivery solutions. The GCC region has played a notable role in this transformation, making significant strides in logistics and supply chain enhancements.
Sea freight remains the primary logistics and transportation method for the GCC countries, crucial for exporting oil and gas products. The leading seaport hubs of the region are off the coast of Saudi Arabia, the emirate of Abu Dhabi in the United Arab Emirates (UAE), and Kuwait. The largest port in Saudi Arabia in terms of land area is the Jeddah Islamic Port, with the highest number of loaded containers in the Kingdom’s ports. On the other hand, the UAE’s logistics industry is expected to expand to more than 30 billion U.S. dollars by 2026. The volume of air freight in Dubai airport exceeded two billion tons in 2023. Air-freight transport in the UAE was forecast to continuously increase between 2022 and 2028 by around three million ton-kilometers.
The logistics industry has proven its critical role in the global economy, adapting to challenges and leveraging opportunities for growth. As the GCC continues to invest in its infrastructure and technology, its logistics hubs are set to become even more pivotal in global trade. The sector's resilience and innovation are key to navigating future disruptions and maintaining the flow of goods worldwide.
Major logistics hubs in the GCC
The Middle East and North Africa (MENA) region saw its share of global freight forwarding decrease due to the pandemic, dropping by almost 2.5 percent to reach 5.7 percent in 2021. In the Gulf Cooperation Council (GCC) countries, significant investments are being made in warehouse automation technology, with the market expected to grow to 1.6 billion U.S. dollars by 2025.Sea freight remains the primary logistics and transportation method for the GCC countries, crucial for exporting oil and gas products. The leading seaport hubs of the region are off the coast of Saudi Arabia, the emirate of Abu Dhabi in the United Arab Emirates (UAE), and Kuwait. The largest port in Saudi Arabia in terms of land area is the Jeddah Islamic Port, with the highest number of loaded containers in the Kingdom’s ports. On the other hand, the UAE’s logistics industry is expected to expand to more than 30 billion U.S. dollars by 2026. The volume of air freight in Dubai airport exceeded two billion tons in 2023. Air-freight transport in the UAE was forecast to continuously increase between 2022 and 2028 by around three million ton-kilometers.
Top logistics brands in the GCC
DP World, based in Dubai, stands out as the most valuable and powerful logistics brand in the Middle East. Specializing in freight logistics, port terminal operations, marine services, and free trade zones, DP World has expanded its market share in faster-growing regions including Asia, the Middle East, and Africa. Abu Dhabi Ports, another leading brand, is part of ADQ's diverse portfolio and has shown profitable operations across various sectors. The company's successful initial public offering in early 2022 positions it well for accelerated growth both locally and globally.The logistics industry has proven its critical role in the global economy, adapting to challenges and leveraging opportunities for growth. As the GCC continues to invest in its infrastructure and technology, its logistics hubs are set to become even more pivotal in global trade. The sector's resilience and innovation are key to navigating future disruptions and maintaining the flow of goods worldwide.
