Middle East Logistics Market Overview
Market Size in 2024: USD 250.0 Billion
Market Size in 2033: USD 407.1 Billion
Market Growth Rate 2025-2033: 5.57%
According to IMARC Group’s latest research publication, “Middle East Logistics Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033”, The Middle East logistics market size reached USD 250.0 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 407.1 Billion by 2033, exhibiting a growth rate (CAGR) of 5.57% during 2025-2033.
How AI is Reshaping the Future of Middle East Logistics Market
- Revolutionizing Supply Chain Optimization: AI-powered predictive analytics and machine learning algorithms are transforming warehouse automation and inventory management across major Middle Eastern logistics hubs, with AI potentially contributing $320 billion to the MENA region’s economy by 2030, including $135.2 billion in Saudi Arabia alone, improving operational efficiency by 30-40% through real-time demand forecasting and automated decision-making systems.
- Enabling Autonomous Transportation Networks: Advanced AI fleet management systems implemented by Dubai’s Roads and Transport Authority are reducing delivery times by 25% while autonomous vehicles and drones are being deployed across the UAE, Saudi Arabia, and Qatar for last-mile delivery, with 67% of supply chain executives reporting full or partial automation of key logistics processes by 2025.
- Enhancing Port Operations and Maritime Logistics: AI-driven berth scheduling, sensor-equipped cranes, and IoT networks are optimizing port operations across 15 Middle Eastern ports, with DP World’s blockchain-integrated platform reducing documentation processing time by 40% and enhancing trade transparency for over 2,500 shipping companies, while automated container handling systems at Hamad Port in Qatar and Jebel Ali demonstrate 35% throughput improvements.
- Facilitating Digital Trade and Customs Clearance: Blockchain-enabled customs clearance and real-time shipment visibility systems are streamlining cross-border logistics operations, with tech giants Microsoft, Google, Amazon, and Meta investing over $300 billion in AI infrastructure supporting regional digital trade facilitation, reducing customs processing delays by 45-50% across Middle Eastern trade routes.
- Implementing Predictive Maintenance Solutions: AI algorithms monitoring logistics equipment across the region’s 200+ industrial zones are preventing equipment breakdowns and reducing operational costs by up to 30% for major logistics providers like Aramex and Emirates SkyCargo, with machine learning systems detecting 85% of potential supply disruptions with an average 7-day lead time before impacts materialize.
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Middle East Logistics Market Trends & Drivers:
The Middle East logistics market is experiencing unprecedented growth driven by the region’s strategic geographic position as a critical bridge between Asia, Europe, and Africa, with major economies like the UAE and Saudi Arabia leveraging their location to become central nodes in global shipping and air transport networks. The UAE’s freight and logistics market, valued at $20.03 billion in 2024, is projected to reach $27.51 billion by 2029 at a CAGR of 6.55%, while Saudi Arabia’s logistics market reached $27.6 billion in 2020 and is projected to grow to $38.8 billion by 2026, supported by over $106.6 billion in infrastructure investments and Vision 2030 economic diversification initiatives.
Government-led mega-projects and infrastructure development are accelerating market expansion, with Saudi Arabia’s Master Logistics Facilities Plan involving 59 facilities, 21 of which will be operational by 2030. The Saudi Port Authority invested $4.5 billion in maritime logistics in 2023 to create new technology-equipped logistics parks, while NEOM’s 170-kilometer logistics corridor and Oxagon floating industrial city demonstrate the Kingdom’s commitment to advanced logistics infrastructure. The UAE’s logistics sector accounts for 14% of GDP in 2024, supported by projects like the $3.5 billion Al Mafraq-Al Ghuwaifat road project and Etihad Rail development connecting major logistics hubs across the region.
The explosive growth of e-commerce is revolutionizing logistics demand, with the Middle East’s cross-border e-commerce market projected to reach $50 billion by 2025 at a 12.7% CAGR, driving investments in specialized fulfillment centers and last-mile delivery solutions. Quick commerce companies like Talabat and RabbitMart offer 20-minute deliveries while Deliveroo provides 15-minute rapid delivery in the UAE, with 80% of UAE online shoppers buying from international sites and cross-border orders comprising 60% of Saudi e-commerce. Major logistics investments include DHL Group’s $575 million expansion across Saudi Arabia and UAE between 2024-2030, DP World’s $250 million Jeddah Logistics Park featuring 415,000 square meters of integrated container storage, and Maersk’s 225,000 square meter fully integrated distribution center in Jeddah helping customers save up to 60% on transport costs while cutting carbon footprints through 70% solar power generation.
Middle East Logistics Industry Segmentation:
The report has segmented the market into the following categories:
Model Type Insights:
- 2 PL
- 3 PL
- 4 PL
Transportation Mode Insights:
- Roadways
- Seaways
- Railways
- Airways
End Use Insights:
- Manufacturing
- Consumer Goods
- Retail
- Food and Beverages
- IT Hardware
- Healthcare
- Chemicals
- Construction
- Automotive
- Telecom
- Oil and Gas
- Others
Breakup by Country:
- Saudi Arabia
- Turkey
- Israel
- United Arab Emirates
- Iran
- Iraq
- Qatar
- Kuwait
- Oman
- Jordan
- Bahrain
- Others
Competitive Landscape:
The competitive landscape of the industry has also been examined along with the profiles of the key players.
Recent News and Developments in Middle East Logistics Market
- June 2025: DHL Group announced over EUR 500 million ($575 million) investment in the Middle East, focusing on Saudi Arabia and UAE between 2024-2030, expanding hub facilities, aviation capacity, warehousing, and integrating advanced technology including electric trucks and joint ventures with Etihad Rail to enhance regional logistics capabilities.
- June 2025: Emirates SkyCargo launched its sustainable aviation fuel program across Dubai International Airport, reducing carbon emissions by 18% while handling record cargo volumes of 2.8 million tons, setting new environmental standards for Middle Eastern air freight operations.
- March 2025: Saudi Arabia’s Public Investment Fund announced an $8 billion logistics city near King Fahd Industrial Port in Yanbu, featuring automated warehousing systems and AI-powered inventory management designed to accommodate 300+ international tenants and support Vision 2030 diversification objectives.
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