UAE Logistics & Warehousing Market Report and Forecast 2026-2032

UAE Logistics & Warehousing Market Insights & Analysis

The UAE Logistics & Warehousing Market reached a value of nearly USD 54.65 Billion in 2025. The market is assessed to grow at a CAGR of around 8.15%, during the forecast period of 2026-2032 to attain a value of around USD 87.45 Billion in 2032. The market is foreseen to expand significantly, driven by the country's strategic positioning as a global logistics hub across the Middle East & its consistent investments in infrastructure.

The UAE Logistics & Warehousing Market development is driven by rising international trade volumes, strong manufacturing & retail activities, and the expansion of e-commerce platforms necessitating efficient mile delivery & supply chain solutions. Also, top cities such as Dubai & Abu Dhabi have established state-of-the-art logistics parks & free zones to support regional & global trade. Also, government initiatives, including the Dubai Industrial Strategy 2030, intend to position the UAE as a leading nation across major sectors, such as logistics services.

UAE Logistics & Warehousing Market FY32

• Study Period: 2020- 2032


• Base Year: 2025


• CAGR(2026-2032): 8.15%


• Market Value 2032: USD 87.45 Billion


• Major Players: Agility, Al Futtaim, Aramex, Century Express, DB Schenker, DHL, DSV-Panalpina, DTDC, Emirates Logistics, Emirates Post, FedEx, GAC, Global Shipping Line, Gulf Wide Express, Hellman, Kuehne Nagel, and Others

Furthermore, growing demand for temperature-controlled storage facilities to adapt to the pharmaceutical & food sectors is contributing to improving the UAE Logistics & Warehousing Market share, enhancing added services capabilities. Also, organizations are gradually investing in tech-driven solutions such as warehouse automation & IoT-based supply chain management to upscale efficacy & decrease operational costs.

Consequently, the country’s profitable location in the MENA region, robust policy support, and prominence in improving infrastructure are anticipated to accelerate the growth of the UAE Logistics & Warehousing Market. The expansion of regional trade, increasing demand for square feet of storage places, and technology developments across the sectors, including cold chain logistics & last-mile delivery services, all contribute to the UAE Logistics & Warehousing Market’s favorable future.

UAE Logistics & Warehousing Market Upgrades & Recent Developments

2025:

• Agility introduced a new one-million-square-foot warehouse facility in Jebel Ali Free Zone, equipped with temperature-controlled storage to serve regional & global clients.
• Aramex declared a strategic merger with a key regional courier to reinforce its mile delivery & e-commerce logistics capabilities in the MENA region.

UAE Logistics & Warehousing Market Dynamics

• Driver: Strategic Geographic Location to Drive the Market Demand Graph

The country’s central location linking Asia, Europe, and Africa makes it an indispensable logistics hub. This strategic advantage facilitates effective global trade routes, strengthening the expansion of the UAE Logistics & Warehousing Market, such as freight forwarding & warehousing solutions.

• Challenge: Higher Operational Costs to Hinder the Industry

Despite infrastructural excellence, the higher cost of operations, such as labor & utilities, creates challenges for logistics providers functioning across the UAE, affecting costing & profit margins.

• Opportunity: Growth in E-commerce Logistics to Open New Avenues

The tremendous growth of online retailing is fueling demand for specified logistics services & mile delivery solutions, offering a profitable opportunity for market companies to expand & invest in the UAE’s swiftly emerging e-commerce supply chain.

• Trend: Automation & Smart Warehousing to be Trending

There is an upsurging trend toward smart warehousing, where organizations are embracing automation, AI, and IoT technologies to enhance operational efficiencies & decrease manual labor costs in the UAE Logistics & Warehousing Industry.

UAE Logistics & Warehousing Market Segment-Wise Analysis

By Freight Forwarding:

• Air Freight
• Road Freight
• Sea Freight
• Domestic Freight Revenue
• International Freight

The Sea Freight segment is the dominant contributor to the UAE Logistics & Warehousing Market by capturing the potential market share. The country's widespread port network, which includes top-notch establishments such as Jebel Ali Port, the largest in the area, makes sea freight an important means of import & export.  Predominantly for heavy products & large-volume shipments, sea freight is more reasonable than air freight, making it a very likeable choice for trade between the Middle East, Europe, and Asia. 

Furthermore, the market has profited from collaborations between private logistics enterprises & port authorities, which have further restructured regional & global trade operations. Also, sea freight is anticipated to become strategically noteworthy in the UAE throughout the forecast period as global supply chains depend more & more on multimodal transport choices.

By Warehousing:

• Business Model
• Agriculture
• CFS/ICD
• Cold Storage
• Industrial/Retail
• Contract & Integrated Warehouses
• Contract Warehouses

The Industrial/Retail Warehousing segment seized the largest share of the UAE Logistics & Warehousing Market. Large-scale, efficient storage facilities are becoming more & more vital as manufacturing & retail operations spread across Abu Dhabi & Dubai. Also, retail & industrial warehouses are constructed to accommodate varied functions, like regional distribution, order fulfillment, and bulk storage.  In addition, there is a larger requirement for scalable warehousing solutions with cutting-edge extra services owing to the growth of SMEs in the MENA region & the surge in omnichannel shopping. 

Moreover, modern inventory management systems are now often installed in these sites, ensuring smooth supply chain operations. Also, industrial & retail warehousing would continue to lead the UAE Logistics & Warehousing Industry going forward owing to the expansion of manufacturing sectors & the rise in the e-commerce sector.

What Does Our UAE Logistics & Warehousing Market Research Study Entail?

• The UAE Logistics & Warehousing Market Research Report highlights the forecast growth rate (CAGR) by anticipating market size and share.
• The market analysis puts light upon the primary industry trends, driving aspects, potential opportunities, growth challenges, and other major factors.
• The UAE Logistics & Warehousing Market Research Report entails details about the most critical shifts in market share in the prominent regions.
• Considering the statistics & the developments by the primary market competitors, our report also strives to demonstrate the most sought-after strategies of the key players.