by The UAE freight forwarding market caters to the logistical requirements of various industries such as manufacturing, retail, and oil & gas sector by providing seamless transportation of goods. Freight forwarders offer value-added services including customs clearance, warehousing, consolidation, tracking consignments among others. The market has witnessed substantial growth over the years due to expansion of trade activities, presence of SEZs, and well-established intermodal transport infrastructure in the country.
The Global UAE Freight Forwarding Market is estimated to be valued at US$ 20.11 Bn in 2024 and is expected to exhibit a CAGR of 7.0% over the forecast period 2024-2031.
Key Takeaways
Key players operating in the UAE freight forwarding market are DHL Global Forwarding, DB Schenker, CEVA Logistics, Emirates SkyCargo, Aramex, Agility, Kuehne + Nagel, GAC, Expeditors International, and Al-Futtaim Logistics. These players are enhancing service offerings and investing in advanced technologies to gain competitive edge.
The market provides several opportunities for players in areas of integrated logistics solutions, e-commerce led transportation, and transit to GCC and African countries. Moreover, government initiatives to promote trade and set up free trade zones are expanding the scope for freight forwarders in the international markets.The UAE acts as a regional trade and transit hub connecting Middle East, Asia, Africa and Europe. Major companies are focusing on establishment of regional hubs and collaborations to strengthen their global foothold and facilitate faster transit of cargos.
Market Drivers
Increasing trade activities between UAE and other countries is a key factor fueling the freight forwarding market growth. UAE has emerged as a prominent re-exporting nation due to its strategic location and presence of business friendly regulations. Furthermore, initiatives such as making Dubai a global logistics hub by 2025 and expansion of Jebel Ali Port are enhancing connectivity and cargo volumes. This is positively impacting the freight forwarding industry in terms of higher revenues.
PEST Analysis
Political: The UAE freight forwarding market growth benefits from strong government support for infrastructure development and trade liberalization policies that facilitate cargo movement in the country. Economic: Growing industrial and manufacturing activities coupled with increase in international trade volumes have boosted demand for freight forwarding services in the UAE.
Social: Changing consumer lifestyles and spending behavior and increasing e-commerce activities are some of the key social trends augmenting the growth of the logistics industry in the UAE.
Technological: Advanced technologies like IoT, AI, blockchain are helping track shipments efficiently and optimize cargo movement. Automation of logistics processes has improved service quality and reduced costs.
Geographical Concentration
The UAE freight forwarding market is highly concentrated in Dubai, which accounts for over 60% of the country’s total market value, led by its position as the Middle East’s largest port and trade hub. Abu Dhabi also has a sizable market share due to investments in developing industrial parks and free trade zones. Other emirates like Sharjah and Ajman are emerging as important economic centers driving regional growth.
Fastest Growing Region
Northern Emirates comprising Sharjah, Ajman, Umm Al Quwain and Ras Al Khaimah have seen their freight forwarding volumes surge in recent years on account of sustained governmental efforts to promote industrialization and diversify their economies. Major infrastructure projects, real estate developments and rising petrochemical exports from their ports point to the Northern Emirates emerging as the fastest growing regional market in the UAE during the forecast period.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
What Are The Key Data Covered In This UAE Freight Forwarding Market Report?
:- Market CAGR throughout the predicted period
:- Comprehensive information on the aspects that will drive the UAE Freight Forwarding ‘s growth between 2024 and 2031.
:- Accurate calculation of the size of the UAE Freight Forwarding and its contribution to the market, with emphasis on the parent market
:- Realistic forecasts of future trends and changes in consumer behaviour
:- UAE Freight Forwarding Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa
:- A complete examination of the market’s competitive landscape, as well as extensive information on vendors
:- Detailed examination of the factors that will impede the expansion of UAE Freight Forwarding vendors
FAQ’s
Q.1 What are the main factors influencing the UAE Freight Forwarding ?
Q.2 Which companies are the major sources in this industry?
Q.3 What are the market’s opportunities, risks, and general structure?
Q.4 Which of the top UAE Freight Forwarding companies compare in terms of sales, revenue, and prices?
Q.5 Which businesses serve as the UAE Freight Forwarding ’s distributors, traders, and dealers?
Q.6 How are market types and applications and deals, revenue, and value explored?
Q.7 What does a business area’s assessment of agreements, income, and value implicate?
About Author - Ravina Pandya
Ravina Pandya,a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals. LinkedIn Profile
