The GCC logistics market, valued at USD 109 billion in 2024, is forecasted to grow to USD 171 billion by 2033, at a CAGR of 5.10%, according to IMARC Group.
Key Growth Drivers:
E-Commerce Expansion: Rapid online retail growth across the region is driving demand for advanced logistics, last-mile delivery, and urban warehousing, especially in Saudi Arabia and the UAE.
Strategic Trade Location: The GCC’s pivotal geographic position connecting Asia, Europe, and Africa continues to enhance its role as a global trade hub, supported by major ports like Dubai’s Jebel Ali.
Infrastructure Investment: Governments are backing large-scale projects such as Saudi Arabia’s Land Bridge rail and Qatar’s Logistics Areas to modernize transport networks and attract foreign investment.
Emerging Market Trends:
Digital Transformation: Technologies like AI, IoT, robotics, and blockchain are reshaping logistics operations, boosting efficiency, visibility, and predictive capabilities.
Sustainable Practices: A focus on green logistics—through renewable energy, electric vehicles, and eco-friendly packaging—is gaining traction amid regulatory and consumer pressure.
Cold Chain Growth: Rising demand in food and pharma is fueling investment in temperature-controlled storage and distribution, with advanced facilities like SmartHub in the UAE setting new standards.
Outlook:
The GCC logistics sector is poised for sustained growth, powered by economic diversification, digital innovation, and regional connectivity projects. While challenges remain—such as technology adoption gaps and evolving security risks—the region’s ambition to become a global logistics leader is well within reach.
Source: IMARC Group
