The COVID-19 pandemic disrupted overall supply chain operations in the UAE, with road freight suffering due to border closures and aviation freight suffering owing to flight cancellations being the most affected. Furthermore, organizations have been dealing with employee diseases and have been compelled to transition to a remote working environment, at least for non-operational workers. The sector is progressively recovering from the transportation constraint. Pharmaceutical logistics will play a major role in the distribution of the COVID-19 vaccine once it is available, and is thus predicted to lead vertical market growth in the future.
The UAE logistics industry is predicted to grow by $11.87 billion between 2022 and 2026, at a CAGR of 6.84% during the forecast period.
The research provides an up-to-date overview of the current market landscape, the latest trends and drivers, and the overall industry environment. The market is being pushed by the expanding e-commerce industry and the increased usage of multimodal transportation. This analysis also cites the growing outsourcing of logistics services as one of the primary reasons driving logistics industry growth in the UAE over the next few years.

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Trends in the Market

E-commerce is expanding in the United Arab Emirates.

According to collaborative research by Dubai Economy and global payments technology giant Visa, which ranks first on Forbes’ list of the World’s Best Regarded Companies, the UAE is making remarkable gains as the fastest growing e-commerce sector in the Middle East and North Africa (MENA).
E-commerce is growing as digital becomes the future in the UAE. High internet usage, backed by smartphone penetration, is one of the key driving reasons for growth in the UAE’s e-commerce business.

The UAE’s expanding pharmaceutical industry is driving logistics.

Pharma industries have been a priority of UAE business development throughout the last decade. The UAE is quickly becoming a source market in the supply chain, manufacturing and exporting medicines to high-demand regions such as Africa and Asia, thanks to the recent adoption of the Dubai Silk Road Strategy and existing superior logistical infrastructure.

The Competitive Environment

The UAE freight and logistics industry is competitive and fragmented, with numerous foreign and local businesses aggressively contending for market share. Some of the market’s participants are DHL, Aramex, and Al-Futtaim Logistics. Technology integration is significant in the logistics sector, and the number of digital companies entering the pool is growing. The eCommerce boom has also aided the rise of digital players in the region. With the country’s total logistics infrastructure quickly increasing, competitiveness within the business is projected to heat up even more.

Key topics covered include:

  • The market for freight forwarding.
    Revenue and Volume by Freight Mode
    Road Transport (Volume and Revenue)
    Air Transport (Total Volume, Volume by Emirates, and Total Revenue)
    Shipping by Sea (Volume and Revenue)

Revenue and Volume by Freight Types

  • International Shipping (Volume, Revenue, and FTK)
    Revenue from Domestic Freight (Volume, Revenue, and FTK)

End-User Revenue

  • Food and drinks
    Manufacturing
    Retail
    Automotive
    Petroleum and natural gas.
    Others include healthcare, telecommunications, and a variety of other industries.

Conclusion

Digitization’s impact on the UAE freight and logistics business is projected to be predominantly beneficial. By making the process more efficient and transparent, businesses may save money while improving their service. Furthermore, by entering new markets, businesses may extend their operations and enhance their earnings. To summarise, the digital revolution is expected to have a significant beneficial influence on the UAE freight and logistics business.
Digitization is the incorporation of digital technologies into a process unit while avoiding analogue format. Using digital freight solutions allows parties to quickly determine their best option in terms of cost and technique. Digitizing businesses enable you to conduct a paperless, cashless, and quick procedure with fewer errors. Based on these demands and developments in the modern world, we launched our firm in Dubai. DFreight is a digital freight forwarding platform that provides a set of strong capabilities for streamlining supply chain collaboration.