UAE Logistics Market, UAE Logistics Industry, Market Revenue: Ken Research

Overview-UAE Logistics Industry

The logistics market in the UAE is one of the top 5 logistics markets globally. The favorable geographic location of the country, at the confluence of Asia, Africa and Europe allows the country to act as a major export, import and re-export hub for many countries.

The UAE is a largely import-oriented market. The top import products of the country include Jewellery, Electronic Products, Automotive Products, Refined Petroleum and Gold. The country is not a manufacturing hub and is therefore majorly dependent on imports for Retail and Consumer Products as well. The top import origins for the country are China, India, US, Germany and the UK.

The UAE is one of the largest producers and Exporters of Oil in the world, with its large Oil reserves mainly in Abu Dhabi. Its major export products include Crude Petroleum, Refined Petroleum, Petroleum Gas, Gold and Diamonds. The top expeort destinations for the country are Japan, India, South Korea, China and Singapore.

The logistics market in the UAE is growing at a steady rate, backed the country’s capable transport infrastructure in the form of airports, roads and sea ports. Dubai’s Jebel Ali Port is one of the largest ports globally and has a capacity of handling 22.4 million TEUs. The country has an under-developed rail transport system, with Etihad Rail having positive targets for expanding the rail transportation system in the country.

With launch of new retail products, continuous regulatory & infrastructural reforms the market has been taking initiatives in order to attract higher FDIs. Adding to this with start of part privatization of Aramco the country is expected to witness higher number of IPOs and increased retail participation by 2030 as well.

Dubai, the primary logistics corridor of the UAE, acts as the gateway to the Gulf Cooperation Council (GCC) region in the Middle East. The city acts as a perfect attractor for multi-national brands and companies, given the high ease of doing business in the city and the high personal disposable income of the Emirati and the non-Emirati in the region. Located at the crossroads of major shipping routes, the city connects the Pacific, Atlantic and the Indian Oceans. Dubai acts as a re-exporter for a number of goods that are produced in Asian markets and are distributed globally to Africa, the Middle-East, and Eastern Europe The Free Zones in the city, also contribute favorably to logistics with companies operating in free zones allowed 100% ownership, tax exemption, no custom duties among other perks.

Figure: UAE Logistics Market Size by Sub-Service, 2015, 2019 and 2025F

UAE Logistics Market Size by Sub-Service, 2015, 2019 and 2025F