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Gulf Cooperation Council (GCC) Contract Logistics Analysis

The GCC Contract Logistics Market size is estimated at USD 9.16 billion in 2024, and is expected to reach USD 12.88 billion by 2029, growing at a CAGR of 7% during the forecast period (2024-2029).

Following the onset of COVID-19, various logistics companies experienced obstacles, including supply-chain capacity bottlenecks and government restrictions, which resulted in the suspension of important services on particular routes and cost pressure and supply-chain management issues. On the other hand, contract logistics service providers who have used automated technology had advantages in dealing with the epidemic and the subsequent lockdowns.

• The United Arab Emirates is part of several multilateral and bilateral trade agreements. The United Arab Emirates has strong economic ties with Saudi Arabia, Kuwait, Bahrain, and Oman in the GCC. Under the Greater Arab Free Trade Area Agreement (GAFTA), the United Arab Emirates has free trade access to Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Syria, Tunisia, and Yemen.
• The Emirates also has signed agreements with other countries, including Pakistan, Algeria, India, South Korea, and the Netherlands. The United Arab Emirates has been focusing on improving its trade agreements to develop the level of trade and economic cooperation as per the laws prevailing in each country and diversify sources of the economy and sustainable development.
• The UAE Ministry of Economy has recently published the full text of the CEPA signed between the Government of the United Arab Emirates (UAE) and the Government of the Republic of India (India). The landmark agreement was signed on 18 February 2022, and has officially entered into force on 1 May 2022. Under the CEPA, both countries expect to boost bilateral trade from USD 60 Billion to USD 100 Billion within the next 5 years; key products that will immediately benefit from the Agreement include oil & gas, petrochemicals, minerals, textiles, agriculture, jewellery and gems, metals and more.
• In October 2022, The Crown Prince Mohammed bin Salman had launched the Global Supply Chain Resilience Initiative (GSCRI) to attract local and international investments in the supply chain sector. Aiming to raise SR40 billion (USD 10.64 billion) in its first two years, the initiative has set SR10 billion in financial and non-financial incentives for investors.
• The approach also relies on effective governance models to improve institutional work in the transportation and logistics sector. The strategy aims to boost the transport and logistics sector's contribution to national GDP to 10% by 2030 and the sector's non-oil earnings to the state's general budget by around SAR 45 billion. Saudi Arabia intends to raise the number of international aircraft routes from 99 to over 250 by 2030.
• Bahrain launched the region's fastest sea-to-air logistics hub as the Kingdom seeks to diversify its economy. The hub is expected to cut costs by 40% and reduce the turnaround time for containers, allowing customers to get their shipment in half the time. Bahrain will capitalize on its geographic position between Europe and Asia and on its proximity to regional target markets through its new multi-modal trans-shipment hub.

Gulf Cooperation Council (GCC) Contract Logistics Market Trends

Growth in E-commerce Driving the Market

Gulf Cooperation Council (GCC) Contract Logistics Industry Segmentation

The outsourcing of resource management tasks to a third-party organization is known as contract logistics. Developing and planning supply chains, designing facilities, warehousing, delivering and distributing goods, processing orders and collecting payments, maintaining inventory, and providing certain aspects of customer support are tasks done by contract logistics businesses.

A comprehensive background analysis of the GCC Contract Logistics Market, covering the current market trends, restraints, technological updates, and detailed information on various segments and the competitive landscape of the industry. The impact of COVID-19 has also been incorporated and considered during the study.

The GCC Contract Logistics Market is segmented By Type (Outsourced and Insourced), End User (Manufacturing and Automotive, Consumer Goods and Retail, High-Tech, Healthcare and Pharmaceuticals, and Other End Users), and By Country (Saudi Arabia, United Arab Emirates, Qatar, Kuwait, Oman, and Bahrain). The report offers market size and forecasts for the GCC contract logistics market in value (USD) for all the above segments.