Report : MEA Logistics Market Forecast to 2028 -COVID-19 Impact and Analysis by Model (1PL, 2PL, 3PL, 4PL, Cold Chain, Secure Logistics, and Last Mile Delivery) and End Use (Manufacturing, Healthcare, Telecommunication, Government & Public Utilities, Travel & Tourism, Consumer Goods, Food & Beverages, and Others)

Logistics Infrastructure Development to Create Growth Opportunities for MEA Logistics Market Players During 2021–2028


According to our latest market study on “MEA Logistics Market Forecast to 2028 – COVID-19 Impact and MEA Analysis – by Model and End Use,” the MEA logistics market size is projected to reach US$ 76539 Million by 2028 from US$ 45000 Million in 2021; it is expected to grow at a CAGR of 7.9% from 2021 to 2028.


Infrastructure is a critical component of Middle East economic development, which is one the primary factor for the logistics market growth in the region. Electricity, roads, water systems, public utilities, airports, trains, and telephones are essential services which channel commerce and movement and promote economic activity. Growing urbanization in the region aids infrastructure development such as transportation and energy. The manufacturing and transportation sectors, which essentially source and deliver raw materials to fabricate consumer products, will benefit from economic success. Infrastructure expenditure has a multiplier effect on overall economic growth since it necessitates industrial and logistics market expansion. Dubai's status as a logistics leader and the government's goal to boost the country's trade ratio have established it as a significant worldwide business center. For instance, a tailored bonded road connects Jebel Ali Port in Dubai; it is the world's biggest container port outside of MEA and connects to Al Maktoum International Airport as part of the emirate's extraordinary road network. The Saudi government has begun spending extensively to construct various transportation infrastructures, including trains, highways, and airports. Furthermore, the government is ready to form new international alliances and cooperation with the region business sector to improve and connect its internal infrastructure, showing good sign for the MEA logistics market. Moreover, the transportation and logistics infrastructure are being Increase with a system which allows for increased performance, such as simple procedures and efficient customized systems. As a result of the above factor the MEA logistics market is expected to flourish over the forecast period.

UAE is considered as an important location for MEA Logistics Market players to invest and expand their business owing to its strategic location and developed infrastructure. According to a joint study by Dubai Economy and Visa, a worldwide payments technology business that ranks first on Forbes' list of the World's Best Regarded Companies, the United Arab Emirates is making remarkable progress as the Middle East's fastest-growing e-commerce industry.


The MEA logistics market is segmented on the basis of model and end use. Based on model, the MEA logistics market is segmented into 1PL, 2PL, 3PL, 4PL, cold chain, secure logistics, and last mile delivery. Based on end use, the MEA logistics market is segmented into manufacturing, healthcare, telecommunication, government & public utilities, travel & tourism, consumer goods, food & beverages, and others. Based on geography, the MEA logistics market is broadly segmented into Saudi Arabia, South Africa, UAE, and Rest of MEA.


Impact of COVID-19 Pandemic on MEA Logistics Market

Due to COVID-19, Middle Eastern countries, like the rest of the globe, reacted quickly by imposing restrictions on the movement of people and products and closing borders. Based on the report by United Nations, around 65 percent of international airports monitored in the Gulf countries were completely shut down, while the remaining 30 percent were only partially operating. Nearly 60% of monitored land border crossing points were shut down completely, while 37% were partially working till August 2020. However, there have been reports of Arab countries loosening their restrictions and lifting their lockdowns since December 2020. Saudi Arabia, for instance, reopened its border with Bahrain, Kuwait, and the United Arab Emirates in January 2021 after an eight-month lockdown. Furthermore, in July 2021, the Kingdom announced to invest over US$ 133.34 billion (SAR 500 billion) in airports, seaports, rail, and other infrastructure in a bid to make the Kingdom a global transportation and logistics hub. In addition, businesses in the logistics market have launched new initiatives to combat the pandemic. Agility, for instance, obtained more capacity and diverted freight services to work around problems. As a result, despite the COVID-19 disruption, the MEA logistics market has regained its momentum.


A few of the key players operating in the MEA logistics market are Agility, United Parcel Service of America, Inc., Al Futtaim - Logistics, CEVA Logistics AG, DHL International GmbH (Deutsche Post DHL Group), FedEx Corporation, Kuehne + Nagel Management AG, RAK Logistics, SAUDI TRANSPORT & INVESTMENT CO., YUSEN LOGISTICS CO., LTD., BRINK'S INCORPORATED, Etihad Secure Logistics, and Securitas AB.

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