The GCC Freight And Logistics Market is segmented by End User Industry (Agriculture, Fishing and Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, Wholesale and Retail Trade, Others), by Logistics Function (Courier, Express and Parcel, Freight Forwarding, Freight Transport, Warehousing and Storage) and by Country (Qatar, Saudi Arabia, UAE). Market Value in USD and Volume are both presented. Key Data Points observed include Freight volume in ton-km by mode of transportation; Production, import and export data; Distance travelled by the freight volume per shipment in km; and, Price of freight transportation per ton-km.
Rail Dominance: Rail transport is rapidly expanding in the GCC Freight and Logistics Market due to increased investments. Saudi Arabia’s USD 266.6 million investment in 2022 further fuels this growth.
Domestic Demand: The largest market destination is domestic, driven by thriving e-commerce, reaching USD 33.2 billion in 2022 and expected to grow to USD 63.31 billion by 2027.
Saudi Arabia’s Ascendance: Saudi Arabia is the largest player in the GCC Freight and Logistics Market. Its sector is set to represent 10% of the country’s GDP by 2030, up from 6% in 2021, thanks to new policies.
Wholesale and Retail Thrive: The Wholesale and Retail Trade segment is a significant contributor to the industry, benefiting from e-commerce growth, especially in Qatar and Saudi Arabia.
Temperature Control Matters: Temperature-controlled logistics, driven by initiatives like Abu Dhabi Vision 2030 and UAE Vision 2021, is the fastest-growing sector.
Infrastructure Investments: Significant investments in land transportation infrastructure, valued at USD 121.3 billion, enhance the region’s transportation network, vital for mega-events like World Cup 2022 and World Expo 2020.
Sustained Growth: The GCC region leads in economic development, particularly in Saudi Arabia, with significant social infrastructure projects in progress and planning.
Infrastructure Funding: Public and private sectors require a combined USD 1.6 trillion for infrastructure development during 2020-2025, with an emphasis on private sector contributions.
Qatar’s Ascendancy: Qatar’s freight and logistics market is on the rise, expected to reach USD 3.19 billion by 2029, driven by growth in maritime and air cargo, including COVID-19 vaccine shipments.
UAE’s E-commerce Boost: The UAE’s freight and logistics industry thrive, propelled by e-commerce and pharmaceutical sectors, generating USD 11.49 billion in 2021, set to grow to USD 19.83 billion by 2027.
Saudi Arabia’s Oil Influence: Saudi Arabia’s oil production dominance extends to its freight and logistics industry, projected to reach USD 16.52 billion by 2029, accounting for 10% of the country’s GDP by 2030, following new strategies.
Population Contractions: The report highlights that among the GCC countries, some are expected to experience the largest population contractions during the forecast period.
Sluggish Growth: Anticipated sluggish economic growth is a notable trend in the GCC region over the forecast period.
Economic Drivers: The GCC region’s economy heavily relies on the oil and gas, mining, and quarrying sector.
Price Increases: Significant increases in wholesale, producer, and consumer prices have been observed in GCC countries.
UAE Growth: The UAE stands out with the highest growth in the region.
Increasing Investments: Investments in the sector are on the rise throughout the GCC region.
Trade Diversification: Trade diversification efforts are underway to boost GCC exports.
Import Focus: GCC countries are working to enhance imports.
E-Vehicles Market: Growth in the e-vehicles market across the GCC region is driven by fuel prices.
Transportation Costs: Rising fuel costs are impacting transportation costs.
Road Freight Leader: Saudi Arabia leads in the road freight market among GCC countries.
Infrastructure Investments: There’s a significant focus on infrastructure investments in the GCC region to improve logistics and attract more business opportunities.
Logistics Hub: Saudi Arabia is particularly focusing on becoming a transport and logistics hub in the GCC region.
Port Capacity: Qatar’s ports experienced a surge in cargo handling capacity in 2022, reflecting a broader trend of capacity expansion in GCC ports.
Port Efficiency: Efforts are being made to boost port efficiency across the GCC.
Container Rates: A trend of decreasing container rates has been observed.
Investment and Capacity Expansion: The GCC region is primarily concerned with investment and capacity expansion.
Infrastructure Development: GCC countries are investing in infrastructure to develop their economies and attract tourism.
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