The UAE Freight Forwarding Market Is Anticipated To Witness High Growth Owing To Increased Trade Activities

 


The UAE freight forwarding market comprises companies involved in organizing and managing shipments of goods through various modes of transportation, such as sea, road, rail and air on behalf of shippers or consignees. The freight forwarding industry in the UAE plays an important role in facilitating trade by undertaking customs clearance, tracking shipments and arrangement of transportation of goods through different networks. Demand for freight forwarding services has been growing in the UAE due to increasing trade and export activities in non-oil sectors like manufacturing, retailing and FMCG. The country has emerged as a vital trading hub in Middle East, Africa and South Asia regions owing to its strategic geographic location and modern infrastructure.

The global UAE freight forwarding market is estimated to be valued at US$ 20.11 Bn in 2024 and is expected to exhibit a CAGR of 7.0% over the forecast period 2024-2031.

Key Takeaways

Key players operating in the UAE freight forwarding market are DHL Global Forwarding, DB Schenker, CEVA Logistics, Emirates SkyCargo, Aramex, Agility, Kuehne + Nagel, GAC, Expeditors International, and Al-Futtaim Logistics. These companies hold a significant market share owing to their widespread networks and expertise in handling shipments through air, sea and road cargo.

The UAE freight forwarding market provides ample opportunities for international trade and logistics players to leverage the country's position as a trade hub. Development of free trade zones and multi modal transport infrastructure has boosted cargo volumes and demand for sophisticated supply chain solutions. In addition, government initiatives such as ‘Operation 300bn’ strategy to increase non-oil exports opens up possibilities for freight forwarders to tap new export markets.

Major freight forwarders are focusing on expanding their footprint across promising Asian, African and European markets by strengthening intermodal links and digital capabilities. Market leaders are making strategic investments and acquisitions to consolidate their presence and cater to rising e-commerce logistics needs. This helps companies enhance service offerings and drive global expansion in the long run.

Market drivers: Developments such as Expo 2020 Dubai, expanding aviation networks and trade ties have driven cargo volumes significantly. Huge infrastructure investments in airports and seaports have augmented transportation and logistics efficiency. This is a major growth driver for the UAE freight forwarding industry.

Market restraints: Geopolitical tensions and regional conflicts pose challenges to streamline transportation links. Additional costs arising from stringent customs regulations and documentation requirements also restrain market growth to some extent. Labor shortage and increasing operating expenses are other constraints faced by freight forwarders in the UAE.

Segment Analysis

The UAE freight forwarding market has two major segments - air freight and sea freight. Air freight is currently dominating the market accounting for over 50% of the total market share. This sub-segment is dominating due to shorter transit times between locations which allows just-in-time deliveries for time-sensitive goods and perishables. Within air freight, express cargo is growing at a higher rate compared to normal cargo due to rising e-commerce activities in the region.

Global Analysis

Regionally, Emirates is currently the fastest growing market for freight forwarding and is expected to maintain its dominance during the forecast period. This can be attributed to the presence of major cargo airports like Dubai International Airport which acts as a trans-shipment hub. It handles large volumes of imports from Asian economies and redistributes them globally. The region also benefits from its strategic location between Asia, Africa and Europe. This allows multinational logistics firms to use the UAE as a regional base to expand Middle Eastern, African and Central Asian operations. KSA is another high potential market driven by investments in infrastructure projects and an aim to diversify its oil-dependent economy.

*Note:

1. Source: Coherent Market Insights, Public sources, Desk research

2. We have leveraged AI tools to mine information and compile it


Get more insights on this topic: https://www.dailyprbulletin.com/the-uae-freight-forwarding-market-is-trending-due-to-increasing-cross-border-trade-activities/


About Author:

Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)

 

What Are The Key Data Covered In This UAE Freight Forwarding  Market Report?

:- Market CAGR throughout the predicted period

:- Comprehensive information on the aspects that will drive the UAE Freight Forwarding 's growth between 2024 and 2031.

:- Accurate calculation of the size of the UAE Freight Forwarding  and its contribution to the market, with emphasis on the parent market

:- Realistic forecasts of future trends and changes in consumer behaviour

:- UAE Freight Forwarding  Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa

:- A complete examination of the market's competitive landscape, as well as extensive information on vendors

:- Detailed examination of the factors that will impede the expansion of UAE Freight Forwarding  vendors

FAQ’s

Q.1 What are the main factors influencing the UAE Freight Forwarding ?

Q.2 Which companies are the major sources in this industry?

Q.3 What are the market’s opportunities, risks, and general structure?

Q.4 Which of the top UAE Freight Forwarding  companies compare in terms of sales, revenue, and prices?

Q.5 Which businesses serve as the UAE Freight Forwarding ’s distributors, traders, and dealers?

Q.6 How are market types and applications and deals, revenue, and value explored?

Q.7 What does a business area’s assessment of agreements, income, and value implicate?


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