UAE Logistics Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The UAE logistics market value reached USD 62.08 Billion in 2024. The market is further projected to grow at a CAGR of 5.50% between 2025 and 2034, reaching a value of USD 106.04 Billion by 2034. The rising demand for e-commerce, as well as improved trade facilities, are driving growth in the market. The progressive government policies, especially in infrastructure development, are one of the main reasons for the boost in logistics capabilities. The industry benefits from the country's strategic location linking up global markets, hence, this sector continues to grow, fueled by soaring demand. Technological breakthroughs and high-speed practices in supply chain processes have also driven market growth, making the country an increasingly important trade hub. The sector are well positioned for growth over the forecast period.

UAE Logistics Market Analysis

Major Market Drivers:The economy of the UAE is growing, which is generating demand for logistics services, and the market is growing fast driven by its strategic location and infrastructure. The UAE is actively developing a number of transportation and road infrastructure projects, including the USD 2.7 billion Sheikh Zayed double-decker road project. More unconventional transportation attempts exist, such as the $5.9 billion proposed hyperloop connecting Dubai and Abu Dhabi. Ports and routes are crucial for seamless trade in global markets. The UAE’s capital-intensivelogisticssector also thrives on its status as a top gateway, facilitating efficient, cost-effective supply chains and international trade routes. A continuous focus on infrastructure development keeps the UAE a global logistics hub, boosts market growth, competitiveness and attracts investments.

Key Market Trends:There are a host of government-imposed policies driving growth in the UAE logistics sector, both encouraging investment and development across the region. Competitive incentives at free-trade zones including Jebel Ali Port reinforce the country’s status as a global shipping and logistics hub. The UAE's strategic priorities to develop maritime hubs coupled with advanced warehouse infrastructure is revolutionizing logistics efficiency. The market thrives all under the development of trade routes and distribution system improvement, all of which put the country in the forefront of international logistics.

Competitive Landscape:Among the leading companies in the UAE logistics market are Al Furat LLC, CEVA Logistics (CMA CGM S.A.), DGL Group, Emirates Logistics LLC, Global Shipping & Logistics LLC, Hellman Worldwide Logistics, Jenae Logistics LLC, Mac World Logistic LLC, Masstrans Freight LLC, Modern Freight Company LLC, Move One Inc., Platinum Shipping & Logistics LLC, UAE Cargo Services, and Union Logistics Ltd. With increasing demand in the UAE market, these logistic providers are looking to improve their services and accommodate a wider range so that they can remain prominent in the fast-growing industry.

Challenges and Opportunities:The UAE logistics market boasts ample opportunities brought on by e-commerce and international trade, which have heightened competition among logistics providers. Although the developing nation has new infrastructure, meeting the demand being placed on warehouses and other supply chain solutions is difficult. Logistics operations might also be affected by regulatory complexities and changing government policies. On the one hand, such challenges present opportunities for innovation as companies adapt to new technologies and optimize logistics processes. This constantly growing market provides a solid foundation for investment and growth.

UAE Logistics Market Trends

Considerable Development in the E-Commerce Sector

The UAE logistics sector continues to grow tremendously, especially propelled by e-commerce growth. With the rise of online shopping, the need for effective logistics management has also increased. Both e-commerce giants and smaller businesses are depending on advanced logistics solutions to provide the high levels of satisfaction that consumers demand in terms of fast, reliable delivery. The need for transparency has made digital solutions like real-time tracking systems indispensable when it comes to meeting customer satisfaction. The UAE’s strategic location and robust infrastructure help logistics companies tackle these issues, enabling them to stay ahead of market demands. With the ongoing boom of e-commerce, the logistics market is set for sustainable growth, as firms turn towards automation and innovations to improve operations. The growth in the demand for speedier deliveries and effective tracking systems has increased competition in the industry and pushed manufacturers to modernize their systems and services. As e-commerce continues to experience growth, leading to the expansion of the UAE logistics market, this will provide early implementing logistics solutions for the fast-changing industry in UAE.

Government Policy Implementation

Government policies implemented in the UAE have positively impacted trade and logistics, which in turn has led to growth of the market. Strategic government initiatives like free zones have strengthened logistics networks and facilitated trade efficiency. These trade facilitation measures, such as simplified procedures and reduced tariffs, have simplified operations for businesses within the logistics sector. The UAE has also established economic zone facilitation agreements with a number of global partners. Such policies have reinforced the UAE's role as a global logistics hub, promoting growth and expanding market opportunities.

Rapid Developments in Technology

Technological advancements are transforming the logistics market at an unprecedented rate; it is a game changer for logistics in general. However, new technologies like theInternet of Things (IoT)and RFID are changing the supply chain ecosystem through real-time tracking, inventory management, and more. These advancements in technology enable logistics companies to optimize their operations, cut expenses, and improve customer experience. To increase efficiency accuracy, the industries are rapidly adopting digital transformation, from ERP solutions such as RISE with SAP. With these solutions, logistics companies are firm and ready to meet the demands of the market, improve their services, and respond to changing industry trends. These are becoming increasingly popular in the logistics market and various tracking solutions powered by advanced technology are improving responsiveness, visibility, and more, further leading to market growth.

UAE Logistics Market Segmentation

In addition to estimates at the national level for 2025-2034, the EMR research analyzes the major trends in each segment of the UAE logistics market. The market has been segmented in our analysis according to end use, mode of transportation, and model type. These segments are vital for the overall market's expansion and progress.

Breakup by Model Type:
2 PL
3 PL
4 PL
Others

The most widely used model type is 3PL.

The UAE logistics market is segmented by 2PL, 3PL, and 4PL model types, all of which significantly contribute to the overall market dynamics. 2PL (Second Party Logistics) are growing in demand, solely by default provides the basic transportation and warehousing.3PL (Third-Party Logistics)offers a more extensive spectrum of services, encompassingsupply chain management, distribution, and inventory control, frequently leveraging technology to optimize processes. On the other hand, the role of 4PL (4th Party Logistics) model has become more strategic and engages in end-to-end supply chain management, process optimization.

Breakup by Transportation Mode:
Roadways
Seaways
Railways
Airways

The biggest market share is held by roadways.

The UAE logistics market has been divided, by mode of transportation, into the following segments. The roadways hold the majority of the domestic transport sector, delivering flexibility and efficiency in last-mile delivery and short to medium distances. International shipping is carried out via seaways, with a lot of shipping passing through some major ports like the International Port of Jebel Ali. Railways are also gaining momentum for their freight transport possibilities, especially in-region. Airways are crucial for high-value and time-sensitive commodities. This seamless transfer of goods between modes allows each mode to support the continued growth of the logistics market.

Breakup by End Use
Manufacturing
Consumer Goods
Retail
Food and Beverages
IT Hardware
Healthcare
Chemicals
Construction
Automotive
Telecom
Oil and Gas
Others

The manufacturing sector currently holds the dominant market share.

The UAE logistics market caters to a diverse set of end-user requirements across several industries. The market report indicates that all manufacturing companies need a substantial logistics system to help them manage their flow of goods from raw materials to distributor or store. There is a need for fast and reliable services in the consumer goods and retail segments to adapt to consumer trends and e-commerce acceleration. Logistics in the sector of food and beverages focus on temperature control, up-to-the-minute delivery, as the needs of perishable goods. Secure, high-value transport solutions are essential in the IT hardware sector, and healthcare logistics must comply with strict regulatory requirements to ensure medical supplies are delivered safely. Chemicals logistics require the transport of dangerous goods, while construction logistics manage heavy and bulky shipments for infrastructural projects and developments. The automotive sector is based on just-in-time delivery of parts and components. Logistics in telecom involves the distribution and setup of equipment, whereas oil and gas logistics offer solutions for getting large-scale infrastructure and natural resources. These sectors significantly contribute to the dynamic growth of the UAE logistics market.

Breakup by Emirates:
Abu Dhabi
Dubai
Sharjah
Ajman
Others

The market is clearly dominated by Dubai.

The UAE logistics market is distributed among different emirates, each presenting an integral part of the country’s supply chain ecosystem. Dubai’s population is more than 80 percent foreign, and Abu Dhabi is the capital and acts as a linchpin due to its location and oil and gas significance. Home to extensive infrastructure developments and an expanding industrial base, the emirate is crucial for logistics activities, especially those that involve heavy and bulk cargo. As the logistic hub of the UAE grows, Dubai is the preferred gateway for global trade. Endowed with world-class infrastructure such as Jebel Ali Port and Al Maktoum International Airport, it has become a key route for international trade and e-commerce and warehousing. With its close proximity to Dubai, Sharjah allows efficient movements at lower logistics costs coupled with a large number of well-established free zones focused on manufacturing and retail. Ajman plays an important role because of its new industrial areas and its location relative to Sharjah and Dubai mid-way between the two making it an attractive site for warehousing and distribution activities. The logistics market in the United Arab Emirates (UAE) is diverse due to the contribution of these four emirates to regional and world trade.

Competitive Landscape

The logistics market in the UAE is competitive. The major logistics service providers include DP World, Aramex, and Emirates SkyCargo, which offer an array of services serving freight forwarding, supply chain management, and warehousing. DP World boasts of a number of port assets, including the Jebel AliPort. The market is particularly well-set-up for e-commerce with a global network combining all the market reach with last-mile delivery, therefore providing integrated end-to-end logistics capabilities. Emirates SkyCargo, a division of Emirates Airlines, focuses exclusively on air freight and leveraging the UAE's role as a significant international connecting point. Domestically, businesses including Transguard Group and Gulf Warehousing are also gaining traction by delivering services that are targeted toward specific industries like construction and healthcare. Increasing investment by technology-oriented companies, leveraging digital solutions such as IoT, and AI for supply chain optimization, is also making the market more lucrative.

List of Companies
Global Shipping & Logistics LLC
Aramex International LLC
United Parcel Service, Inc.
Schenker AG
C.H. Robinson Worldwide Inc.
Deutsche Post AG
DSV A/S
FedEx Corporation
CMA CGM Group (CEVA Logistics SA)
Kuehne + Nagel International AG
Expeditors International of Washington, Inc.
Kintetsu World Express Inc.
A.P. Møller – Mærsk A/S
Al Furat LLC
DGL Group
Emirates Logistics LLC
Hellman Worldwide Logistics
Jenae Logistics LLC
Mac World Logistic LLC
Masstrans Freight LLC
Modern Freight Company LLC
Move One Inc.
Platinum Shipping & Logistics LLC
UAE Cargo Services
Union Logistics Ltd.

UAE Logistics Market News:
In March 2025 , GEODIS, a global transport and logistics company, announced the debut of a new road transport fleet in the UAE, consisting of 11 Euro 4 and Euro 6 biofuel vehicles. This program will assist it in meeting its aim of a 42% reduction in Scope 1 and 2 greenhouse gas (GHG) emissions from its vehicle fleets and buildings compared to the baseline year of 2022.
In March 2025 , Dubai South, the world's largest single-urban master development focused on aviation, logistics, and real estate, and UPS, a worldwide logistics giant, signed a deal to establish a new facility in Dubai South's Logistics District. This launch is part of UPS's strategic expansion into the region.
In December 2024 , dnata Logistics began construction on a 57,000m² warehouse in Dubai South, the largest master development for aviation, logistics, and real estate. Strategically positioned near Dubai World Central - Al Maktoum worldwide Airport (DWC), the development of dnata Logistics will significantly contribute to the emirate's growth and prosperity as a vital worldwide logistics hub.
In September 2024 , Etihad Rail Freight, a subsidiary of Etihad Rail and the creator of the UAE National Rail Network, has inked a Haulage Services Agreement with Trojan General Contracting, a major UAE construction business. The agreement seeks to provide full transportation and logistical services for Trojan's aggregates, as part of a strategic drive to improve connectivity and supply chain efficiency throughout the country.
In September 2024 , Noatum Logistics, an AD Ports Group company and a premier logistics provider, has announced the launch of a new rail logistics solution for the Middle East. The new service, which adds to Noatum Logistics' integrated regional portfolio of freight forwarding products that leverage land, sea, and air transport, began with the inauguration of its first rail shuttle service between Khalifa Port and Fujairah Terminals.
In September 2023 , Zencargo, a digital freight forwarding pioneer based in the United Kingdom, has become the newest company to join the Ministry of Economy's NextGenFDI program. The company intends to establish operations in the UAE with the goal of integrating into the country's technological, trade, and logistics ecosystems and using it as a platform to expand into Africa and South Asia.