The UAE is the second-largest economy next to Kingdom of Saudi Arabia in terms of GDP amongst the Gulf Cooperation
Council (GCC) nations. In terms of functional segments, the total
logistics market in the UAE comprises transportation services,
warehousing services, freight forwarding services, and value added
logistics services (VALS).
Freight forwarding represents the largest share with about 62 percent and transportation is the
second largest contributor with about 18 percent of total logistics revenues, owing to significant distribution
activity.
The final two contributors to logistics revenue are warehousing at about 16 percent and VALS, such as packaging and labelling, at about four percent.
Logistics services offer significant benefits and wider opportunities to the GCC economies. Overall, the sector is on a growth trajectory and is witnessing the mega trends that would help establish it as a prominent logistics hub.
The GCC benefits from two unique opportunities: strong growth of volume in the trade lane between Europe
and Asia and steady growth and development of manufacturing activities driven by predominantly
Saudi Arabia.