Industry Definition

The report provides a thorough background analysis of the Middle East Freight Forwarding Market, which covers market overview, market size estimation for key segments and emerging trends in the market segments, market dynamics, competition and key component flow statistics. It also assesses the sector’s contribution to the economy.

Key Figures

Total Number of Companies in Middle East: 543,934
Number of Companies in Transportation and Warehousing Sector in Middle East: 20,133
Market Size of the Middle East Freight Forwarding Market: ~USD xx million

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Brief on the Middle East Freight Forwarding Market

The Middle East Freight Forwarding Market is estimated to grow with a compounded annual growth rate of about xx% during the forecast period of 2023-2028.

  • Globalization and technology have opened up new prospects for internationalisation during the past ten years, enhancing Africa’s supply chains and competitiveness.
  • The mining industry, which accounts for a third of the GDP, is very important to the economy. The region is quickly developing into a region of automotive and supply chain opportunities, despite a prolonged period of downturn over the past five years caused by a reduction in oil prices and geopolitical unrest. Mercedes-Benz, VW, Toyota, GM, Groupe PSA, and other automakers are making investments in the regional economy.
  • The focus in the region is quickly turning to one on healthier eating and lifestyle choices, which is driving up demand for organic and health food categories including meat substitutes and extremely nutrient-dense foods. These categories are in increasing demand, primarily in the UAE and a few other gulf nations. This is primarily due to the products’ comparatively high costs and limited supply, given their niche classification, and the fact that products like meat substitutes have not yet gained widespread acceptance in the local culture and demographics. This has opened up opportunities for controlled temperature logistics and storage services in the area.
  • The e-Commerce sector has also experienced significant development, with post-pandemic consumers more willing to make online purchases, particularly for food. Almost 27% of the sales in the Gulf region were made in the food sector through e-Commerce channels.

Middle East Emerging as Logistics Hub

  • The two main drivers of foreign direct investment (FDI) into GCC economies have been highlighted as being the industrial and logistics sectors. The GCC has developed into a key hub in the global exchange of goods. The key geographic location of the Gulf region along the Asia-Europe trade route and the resulting high levels of investment in megatransport infrastructure, such as ports, airports, railways, and roads, are the main drivers of the growth of the region’s logistics infrastructure.
  • The GCC accounts for more than 60% of all port-related spending in the Middle East. In order to accommodate the largest container ships in the world, new, highly automated ports are being built as well as current ports being expanded. Additionally, the development of larger logistical networks, including as passenger and freight railway plans, airports, special economic zones, and so-called logistics cities, is inextricably related to these port developments. GCC maritime facilities are positioned as essential feeder ports to lesser East African ports in addition to being crucial to commodities circulation from Asia to Europe.
  • With a focus on four important sectors—industry, mining, energy, and logistics—the National Industrial Development and Logistics Program (NIDLP) was developed in Saudi Arabia with the goal of transforming the country into a leading industrial powerhouse and a major worldwide logistical hub. The Red Sea region’s largest port and a logistical and industrial sector are both part of the USD 93 billion King Abdullah Economic City (KAEC). The purpose of Kuwait’s new Mubarak Port is to strengthen its status as a regional commerce hub.
  • According to Bahrain’s Vision 2030, the country would serve as a regional logistics and manufacturing hub. The creation of “world-class infrastructure” is a key component of Qatar’s future development, according to its National Vision 2030.
  • The Omani state wants to promote itself as a regional logistics hub by taking advantage of the location of ports outside the Strait of Hormuz. Oman and Qatar, like Jebel Ali, aim to create an integrated logistics hub that links seaports, airports, rail, and roads establishing connections between ports and free zones that may assemble, label, and repackage goods for re-export. A soft infrastructure is added to this hard infrastructure in order to encourage multinational corporations to move their operations to the new logistics spaces.
  • The non-oil sector’s growing GDP contribution, infrastructure improvement, the expansion of free trade zones and industrial parks, and increased regional trade cooperation are the main factors driving the sector’s growth.
  • Ras Al Khair Industrial Port, which has the greatest land area of any port in Saudi Arabia, has the most loaded containers of any port in the country, followed by Jeddah Islamic Port. By contrast, the UAE’s logistics sector is anticipated to grow to a value of over 30 billion dollars by 2026. In 2021, the airport in Dubai handled more than two billion tonnes of air freight. Between 2022 and 2028, there was a predicted constant six million ton-km rise in air freight transit in the United Arab Emirates.
middle east freight forwarding market - top five importing partners
middle east freight forwarding market - import-export value

Competitive Landscape

  • The Middle East Freight Forwarding Market is fragmented, having a mix of significant global and domestic businesses. With a significant number of local players and several major players, the countries in the region are exploring their expanding capabilities with the developing trade relations and tech trends.
  • In order to expand their geographic reach, service offerings, and product portfolios, the companies in the market strive to grow both organically and inorganically. 
  • The companies are facing immense competition in terms of technological adaptability, delivery price and delivery time. 
  • Industry sources claim that Deutsche Post DHL Group occupies a key position in the Middle East Freight Forwarding market accompanied with Almajdouie Logistics Co. LLC, Al Futtaim LogisticsDP World, and Mac World Logistics among others. 

Why buy this report on the Middle East Freight Forwarding Market?

UPKR Intelligence market research reports enable you to:

  • Understand the market
  • Pinpoint the key industry trends
  • Identify threats and opportunities
  • Quickly build competitive intelligence

This report on Middle East Freight Forwarding Market:

  • Provides the data on economic status of Middle East region, trade relations, modal engagement and market size information to assist with planning and strategic decisions.
  • It helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
  • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.

The Middle East Freight Forwarding Market research report includes:

  • Analysis of the important factors influencing this industry’s history, including data
  • Five-year market projection and trends identified
  • For the primary products and markets, thorough research and segmentation
  • Analysis of key players in the market, their shares and the competitive environment 

UPKR Intelligence is a market research company fully concentrated on the logistics domain. We cover the entire market including the dynamic trends, various segments and the market competition via the analysis of the companies operating in the market to arrive at conclusions to aid the needs of our clients. 

Table Of Content

  1. Market Overview
    1. Economic Overview of Middle East
    2. Overview on Middle East Freight Forwarding
  2. Market Dynamics
    1. Market Drivers
    2. Restraints
  3. Value Chain Analysis
  4. Porter’s Five Forces Analysis
  5. Government Regulations and Initiatives
  6. Technological Developments in the Market
  7. Spotlight on Freight Rate
  8. Insights into Trade Relations
  9. Impact of COVID-19 on the Market
  10. Market Segmentation
    1. By Mode of Transportation 
      1. Road Freight
      2. Rail Freight
      3. Sea Freight
      4. Air Freight
    2. By Business 
      1. Road Freight
      2. Rail Freight
      3. Sea Freight
      4. Air Freight
    3. By End-Users
      1. Manufacturing
      2. Oil and Gas
      3. Distributive Trade
      4. Construction
      5. Healthcare
      6. Other End-Users
    4. By Country
      1. Saudi Arabia
      2. UAE
      3. Qatar
      4. Rest of Middle East
  11. Competitive Landscape
    1. Market Concentration Overview
    2. Company Profiles (list not exhaustive)
      1. Deutsche Post DHL Group
      2. Almajdouie Logistics Co. LLC
      3. Al Futtaim Logistics
      4. DP World
      5. Mac World Logistics
      6. Agility Logistics
      7. Hellmann Worldwide Logistics
      8. DB Schenker
      9. Hala Supply Chain Services
      10. GCC Cargo
  12. Outlook and Opportunities in the Market
  13. Appendix
    1. GDP Distribution and Growth by Economic Activities
    2. Inflation Statistics
    3. Contribution of the Transport and Storage Sector to GDP
    4. External Trade Statistics – Export and Import, by Product
    5. Key Import and Export Destinations