UAE Medium and Heavy Duty Truck Market Overview, 2030

The UAE’s medium and heavy-duty truck market has seen a major shift post-2020, fueled by logistics demand from e-commerce, infrastructure expansion linked to Expo 2020 legacies, and the country’s energy diversification. The market, historically reliant on diesel-powered imports from Japan, Europe, and China, has moved toward adopting Euro V and Euro VI-compliant vehicles. The major brands like Mercedes-Benz, Volvo, Hino, Ashok Leyland, and Foton have all introduced low-emission, high-torque truck models to meet rising compliance demands. The Technological advancements in this market include telematics integration, collision-avoidance systems, and adaptive load monitoring, now standard in high-end fleet vehicles. Electrification and hydrogen trucks remain at the pilot stage, with manufacturers such as Volvo and Hyundai launching test units under government sustainability programs in Abu Dhabi and Dubai. Disruption has come from AI-enabled fleet management systems and predictive maintenance tools, especially in public and oil sector fleets. The Emirates Authority for Standardization and Metrology (ESMA) enforces regulations aligned with Gulf Standards Organization (GSO) codes, while the UAE Cabinet Resolution No. 37 of 2019 mandates emissions control for all imported commercial vehicles. Trucks require certifications for roadworthiness, emissions, axle-load compliance, and electronic safety features. Government procurement policies favor low-emission fleets and are coupled with exemption from customs duties under specific import categories. Tax incentives include VAT exemptions for electric and CNG vehicles in pilot schemes across selected emirates. Regulations differ across the GCC, while Saudi Arabia aligns with Euro IV standards, UAE leads the region in sustainability mandates. Competition is influenced by customs union agreements, free-trade zones, and Buy Local incentives under Operation 300bn. Policies actively shape OEM strategies on localization, CKD assembly, and public-private collaborations in green mobility infrastructure.

According to the research report ""UAE Medium and Heavy-Duty Truck Market Overview, 2030,"" published by Bonafide Research, the UAE Medium and Heavy-Duty Truck market is anticipated to grow at more than 5.05% CAGR from 2025 to 2030. This market is driven by the UAE’s rapid infrastructure build‑out, growth in e‑commerce logistics, and the government’s sustainability mandates, which collectively shape raw material flow, production models, distribution frameworks, sales dynamics, and inter-industry ties. Raw materials such as high-strength steel for chassis, aluminum, batteries, and diesel engine components are mostly imported from Japan, Europe, China, and India, making sourcing vulnerable to currency volatility, shipping delays, and tariff shifts, especially in the aftermath of global supply chain disruptions. Assembly and manufacturing typically involve CKD imports assembled by local bodybuilders in Dubai, Abu Dhabi, and Sharjah, supported by free‑zone incentives and OEM partnerships. Strong adoption of telematics are now mandatory for heavy vehicles in Dubai electric medium-duty models like the Fuso eCanter and Tesla target demos, and the deployment of hydrogen prototypes, as seen in the Hyundai–BEEAH project. These trends unlock opportunities in green fleets, smart logistics platforms, and aftermarket services. Industries reliant on trucking range from construction, mining, and waste management to energy, retail, and air freight, all depending on efficient, compliant trucks. Trade tariffs affect costs, while imports under FTAs receive duty concessions, tariffs on non‑compliant or completely built imports can add 5–12%, impacting pricing competitiveness and pushing companies toward local assembly. ADQ’s acquisition of Aramex and partnerships between Emirati bodies and OEMs are consolidating distribution power and enabling vertical integration in green mobility. Tech startups like TruKKer (AI-driven freight marketplace), Cafu (fuel-on-demand), and EV retrofit firms within Hub71’s ecosystem are injecting innovation and attracting venture capital to logistics and platform solutions.

Medium trucks, ranging from 3.5 to 16 tonnes, are commonly used for urban logistics, food and beverage delivery, retail supply chains, and municipal applications such as waste collection and utility servicing. Cities like Dubai and Abu Dhabi deploy these trucks for intercity routes and last-mile freight, especially in sectors requiring lower emissions and maneuverability. Popular models include the Mitsubishi Fuso Canter, Isuzu N-Series, and Hino 300, favored for their fuel efficiency, compact design, and ease of fleet maintenance. Heavy-duty trucks, exceeding 16 tonnes, serve cross-emirate freight movement, industrial logistics, construction material haulage, and oilfield support. Tractor-trailers and rigid haulers dominate corridors linking Dubai’s Jebel Ali Port, Abu Dhabi’s ICAD zones, and Sharjah’s industrial clusters. These are typically used by large fleet operators, government contractors, and logistics providers like Emirates Transport, Aramex, and Al-Futtaim Logistics. Manufacturers like Volvo, Mercedes-Benz, MAN, and Scania offer Euro V/VI-compliant units with high torque, ADAS, and integrated telematics. Demand for heavy vehicles is also driven by initiatives like the Etihad Rail project and ADNOC supply chain modernization, requiring high-capacity trucks for long hauls and desert operations. The UAE’s road freight regulations, including axle-load limits and mandatory telematics in Dubai, shape vehicle type selection. CKD assembly for certain brands takes place in Jebel Ali and Sharjah free zones, with customizations for climate resilience and off-road performance. Both medium and heavy-duty segments are seeing early adoption of battery-electric and CNG prototypes, encouraged by low-emission mandates in Abu Dhabi’s clean mobility plans. Fleet purchases are typically made through bulk procurement, public-private partnerships, and long-term leasing programs bundled with driver training and maintenance packages, positioning vehicle class as a strategic factor in fleet cost management and route optimization.

Internal Combustion Engine (ICE) trucks still dominate both medium and heavy-duty segments, fueled mainly by diesel and supported by extensive fueling infrastructure across the Emirates. These trucks, supplied by brands like MAN, Volvo, Mercedes-Benz, Hino, and Ashok Leyland, are preferred for their durability, long range, and compatibility with harsh desert environments. Fleet operators in construction, logistics, and public sector contracts rely heavily on ICE models for long-haul operations and payload flexibility, particularly for oilfield, mining, and port-based logistics. However, electric trucks are gaining ground, driven by sustainability targets under the UAE Net Zero 2050 initiative and pilot projects led by Dubai Roads and Transport Authority (RTA), Masdar, and logistics firms like Aramex and Emirates Post. Models like the Fuso eCanter and Tesla Semi are undergoing trials in controlled fleet environments, especially in intra-city logistics and industrial park transportation. Challenges remain around charging infrastructure, battery thermal performance, and range anxiety, but government incentives, free zone subsidies, and zero-VAT policies on EV components are gradually improving adoption rates. Other propulsion types, including CNG and hydrogen fuel cell trucks, are in exploratory stages. Ashok Leyland and Hyundai have introduced CNG and hydrogen demonstrators in partnership with clean energy agencies in Abu Dhabi and Sharjah. Hydrogen, supported by ADNOC and Masdar’s green hydrogen initiatives, is positioned as a future solution for long-haul freight, with pilot stations under development. CNG vehicles are used in municipal fleets for waste collection and light industrial freight, especially in Sharjah and Ajman. Propulsion choices are increasingly driven by total cost of ownership, fuel subsidies, regulation compliance, and infrastructure development, signaling a gradual but strategic shift toward electrification and alternative fuels in fleet modernization plans.

Rigid trucks form a substantial share of the market, especially in the medium-duty range, and are primarily used for city logistics, FMCG distribution, refrigerated transport, and municipal services. These vehicles are commonly operated by retail chains, waste contractors, and utility departments in cities like Dubai, Sharjah, and Al Ain. Brands like Hino, Isuzu, and Ashok Leyland dominate this segment with compact yet durable chassis options suited for short to mid-range urban routes. Tractor-trailers or articulated trucks are extensively used for cross-border and heavy logistics operations, particularly between UAE’s seaports (Jebel Ali, Khor Fakkan), industrial hubs (KIZAD, JAFZA), and neighboring GCC countries. These vehicles, often supplied by Volvo, Mercedes-Benz, and Scania, handle containerized cargo, fuel tankers, and heavy machinery transport, serving major logistics players like Agility, Aramex, and Tristar. Their modular coupling allows for flexibility in hauling varied load types over long distances. Tipper and dump trucks are integral to the UAE’s ongoing construction boom, handling excavation debris, aggregates, sand, and asphalt. These are widely deployed across real estate and infrastructure projects in Abu Dhabi, Dubai South, and Ras Al Khaimah, with body types customized for off-road durability and hydraulic unloading. Leading OEMs in this space include Tata Daewoo, MAN, and Renault Trucks. Other body types include water tankers, flatbeds, mobile workshops, and cranes, supporting sectors like oil & gas, firefighting, and emergency response. Many are configured as per client needs at assembly centers in Dubai’s Jebel Ali Free Zone and Sharjah Industrial Area.

Logistics and transportation operators form the largest user group, with trucks deployed for port-to-warehouse movement, cross-emirate deliveries, cold chain logistics, and e-commerce fulfillment. Companies like Emirates Transport, Aramex, DHL, and Agility use fleets of tractor-trailers and rigid trucks across major corridors connecting Dubai, Abu Dhabi, Sharjah, and northern emirates. Construction and mining sectors rely on heavy-duty dumpers, concrete mixers, and articulated haulers to support megaprojects like the Etihad Rail, Expo City, and ADNOC’s energy infrastructure expansions. These industries demand trucks with reinforced chassis, high ground clearance, and off-road capabilities, often supplied by brands like MAN, Scania, and Tata Daewoo. Agriculture and forestry applications are limited due to the UAE’s arid terrain, but where present especially in Al Ain and Ras Al Khaimah they include the use of medium trucks for transporting animal feed, greenhouse produce, and irrigation equipment. The utility and municipal sector deploys a large number of medium trucks for waste management, street maintenance, firefighting, and water tankers. Municipalities in Dubai and Sharjah operate fleets for sanitation, supported by truck bodies custom-built in local workshops. Other end users include oil and gas companies, which require specialized tankers, crane-mounted trucks, and mobile maintenance units for desert operations, often tailored for extreme weather and remote site reliability. Military, airport logistics, and event management sectors also utilize purpose-built fleets for niche applications. The adoption of connected vehicle technologies, demand for low-emission fleets, and expansion of logistics parks have further boosted the role of trucks across these end-user segments. Government tenders, long-term lease models, and public-private partnerships are key procurement routes across all sectors.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Medium and Heavy Duty Truck Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Vehicle Class
• Medium (3.5 to 16 Tonnes)
• Heavy (16 Tonnes and Above)

By Propulsion
• ICE
• Electric
• Other

By Body Type
• Rigid Trucks
• Tractor-Trailers / Articulated Truck
• Tipper / Dump Trucks
• Other

By end users
• Logistic transportation
• Construction and Mining
• Agriculture and Forestry
• Utility And Municipal
• Other