PUBLISHER: Mordor Intelligence | PRODUCT CODE: 1842512
PUBLISHER: Mordor Intelligence | PRODUCT CODE: 1842512
The GCC Contract Logistics market stands at USD 7.33 billion in 2025 and is set to reach USD 9.49 billion by 2030, reflecting a 5.29% CAGR over the forecast period.
Regional governments are channeling record infrastructure spending into free trade zones, multimodal corridors, and digital trade platforms, positioning contract logistics as a cornerstone of diversified economic growth. Accelerating e-commerce, large-scale industrial projects under Saudi Vision 2030, and rising healthcare shipment volumes are amplifying demand for sophisticated fulfillment, cold-chain, and value-added services. Competitive intensity is increasing as global integrated logistics players add robotics and data-driven solutions while regional specialists leverage local knowledge to secure long-term partnerships. Despite strong momentum, cabotage rules and a chronic shortage of Grade-A warehouses continue to inflate operating costs and curb network optimization.
Online orders in the MENA region climbed 30% in 2024, with the UAE's average order value moving from USD 30 to USD 35.6. Around 42% of e-commerce firms still list last-mile efficiency as the chief obstacle. Contract logistics providers are building regional fulfillment centers, adding parcel sortation automation, and integrating cross-border routing tools to cut delivery windows while controlling cost.
Saudi Arabia approved USD 50 billion of projects under Vision 2030 in 2024 and earmarked funding for 59 national logistics centers. NIDLP allocates a further USD 36 billion for logistics infrastructure, plus USD 28 billion for industrial zones. These capital programs demand turnkey contract logistics capable of synchronized inbound, storage, and outbound flows. Operators embedded at project sites report rising localization targets, with 68% of companies prioritizing supply-chain localization for resilience.
Regional rules barring foreign tractors from domestic moves raise cross-border costs 18-23% and add 36 hours to multi-border transits. Temperature-sensitive cargo suffers most. Providers adopt hub-and-spoke models, yet still face double handling at borders. Regulatory harmonization lags physical links such as the Gulf Railway, muting potential productivity gains.
Other drivers and restraints analyzed in the detailed report include:
For complete list of drivers and restraints, kindly check the Table Of Contents.
Warehousing and distribution captured 47% of GCC Contract Logistics market share in 2024 on the back of the region's role as a crossroads between Asia, Europe, and Africa. GCC Ongoing investments include Saudi Arabia's USD 2.66 billion program to build 18 logistics zones by 2030. Robotics and high-bay automation are raising throughput and labor productivity, enabling faster cycle times that retailers and manufacturers demand. Yet limited Grade-A capacity still inflates costs for temperature-controlled storage, keeping barriers high for new entrants and supporting premium pricing.
Value-added services are projected to expand at 7.80% CAGR through 2030 as 3PLs bundle kitting, light assembly, and customization into comprehensive solutions. High-tech adoption drives this growth: DHL is deploying 1,000 additional Boston Dynamics robots after investing EUR 1 billion (USD 1.16 billion) in automation. Swisslog is promoting AutoStore robots that align with Saudi Vision 2030's innovation push. As clients pivot from transactional storage to integrated value chains, providers that integrate IT visibility, co-packing, and compliance support gain share.
The Gulf Cooperation Council (GCC) Contract Logistics Market Report is Segmented by Service (Transportation Management, Warehouse and Distribution and More), by End-User Industry (Consumer Goods and Retail and More), by Contract Duration (Short-Term and Long Term), and by Country (Saudi Arabia, United Arab Emirates, Qatar and More). The Report Offers Market Size and Forecasts in Value (USD) for all the Above Segments.