The Logistics industry in the UAE is one of the top 5 logistics markets in the world, given the favourable location of UAE at the intersection of Asia, Africa & Europe. Growth in the industry has been stimulated due to the high ease of doing business in the Emirates, due to which the country is home to a lot of global and multi-national brands.
The industry is home to an extremely strong
Freight Forwarding segment, driven by the UAE’s position as a key facilitator
for global re-exports. Moreover, given its high dependence on Imports for Consumer
Products and Technology, the UAE has strong trade relations with far-Eastern
countries, European countries and the US. Given its oil-producing capabilities,
the country relies heavily on Sea Freight as a mode of cargo transport, with
the service being almost a common feature amongst freight forwarding companies
in the country. The UAE also has a strong warehousing market segment, driven by
players that lease warehousing space for long durations of time. Warehousing
operations near to the Jebel Ali Port and Dubai Airport are considered most
favourable to reduce the transportation cost from port to mother-hub. The
Courier, Express and Parcel market is driven by growth in Last-Mile deliveries
and the E-Commerce segment in the country.
Challenges for Logistics Market in the UAE
Over-dependence
on Imports: Levels
of domestic manufacturing in the country have remained very low since 2009. On
the account of this industries have majorly required freight forwarding
services from logistics service providers during this period. This has left
very limited scope for end-to-end logistics services in country. Moreover,
small size of the domestic manufacturing has forced the logistics companies to
serve the international markets in the recent years which have made cost
effectiveness very important.
Limited Progress
in E-Payment Gateways: The
sophistication level in the country’s e-payment gateways has been well below as
compared to more developed international retail markets over the period. Cash
on delivery has been the most preferred mode of payment for online shipments in
UAE over the past five years.
Competition Overview
The competition in the Logistics space in the UAE can be
divided on the basis of different service segments including Freight
Forwarding, Contract Logistics (Warehousing) and Express Delivery.
International players such as Kuehne + Nagel, DB
Schenker, DHL, Agility were identified to be dominant when it comes to Air
Freight and Sea Freight, simply due to the large MNC accounts managed by these
companies and the strong volumes they transport from international markets to
the UAE. When it comes to Land Freight, local companies such as Avalon, Allied
Transport, ATS, Mohebi Logistics and NTDE were identified to be most dominant,
because of their trucking fleet in the Emirates.
While the International Express market in the UAE
is concentrated among majorly global players such as DHL, FedEx and UPS, the
Domestic Express market is more fragmented due to heavy competition among local
players such as Zajel Courier Services, Skynet, and Time Express. Emirates Post
is a government owned entity that leads the Domestic Express market.
Future Growth
While
the COVID-19 situation has hit global supply chains largely, the UAE has been
comparatively less impacted. The logistics market in the country is expected to
grow on the back of new technologies such as Automation, Blockchain and
Internet of Things, which will be explored to increase efficiency, improve
customer experience and enhance service quality. The pharma logistics segment
and the e-commerce logistics segment are expected to drive growth in the
future, given the expected increase in medical products requirements post
COVID-19 and the growing penetration of e-commerce in the country.
Key Target Audience:-
3PL Logistics Companies
Integrated Logistics Companies
E-Commerce Companies
Oil & Gas Companies
Retail Companies
Pharmaceutical Companies
Logistics/Supply Chain Industry Associations
Time Period Captured in the Report:-
Historical: 2015 to 2019
Future: 2019 to 2025
Companies Mentioned:-
Kuehne + Nagel
Agility
Emirates Post
Al-Futtaim Logistics
DB Schenker
DHL
FedEx Express
UPS
Allied Transport
Freightworks
Zajel Courier Services
Time Express
Bollore Logistics
Danzas AEI
Mohebi Logistics
Hellmann Worldwide Logistics
Tristar
Gulf Agency Company
CEVA Logistics
ATS
Skynet
Sky Express
Avalon General Land Transport
GSL (Global Shipping and Logistics)
RSA Global
Roadlink Transport
Al Mujarad Transport
Key Topics Covered in the Report:-
UAE Logistics Industry Overview
UAE Logistics Industry Market Size by Sub-Service, 2015-2025
UAE Logistics Industry Market Size by Vertical, 2015-2025
UAE Logistics Sub-Service Market Segmentation by End User
Verticals, 2019-2025
UAE Warehousing Market Segmentation by Type of Warehouses,
2019
Competitive Landscape including Major Players in each Service
Segment, 2019
Competitive Landscape including Major Players in each
Vertical Segment, 2019
Cross-Comparison of Major Freight Forwarding and Express
Players, 2019
Company Profiles of Major Players in each Segment
Major Trade Lanes for Land Freight, Sea Freight, Air Freight
and International Express, 2019
Pricing Analysis for Major Players by Service Mix, 2019
For More Information on the research report,
refer to below link:-
Related
Reports:-
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
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