GCC Logistics Market Size to Reach USD 171.0 Billion by 2033 | With a 5.10% CAGR

GCC Logistics Market Overview

Market Size in 2024: USD 109.0 Billion

Market Size in 2033: USD 171.0 Billion

Market Growth Rate 2025-2033: 5.10%

According to IMARC Group's latest research publication, "GCC Logistics Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", the GCC logistics market size was valued at USD 109.0 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 171.0 Billion by 2033, exhibiting a CAGR of 5.10% during 2025-2033.

How AI is Reshaping the Future of GCC Logistics Market

● Route Optimization and Predictive Analytics: AI algorithms process real-time traffic, weather, and geopolitical data to dynamically reroute shipments, reducing transit times by 20-25% across GCC highways and ports, as seen in Dubai's smart corridors where platforms like those from DocShipper analyze over 2,000 routes daily for 22% faster deliveries.

● Autonomous Warehousing and Robotics: AI-driven robots handle picking and packing in facilities like Kuehne+Nagel's upcoming Dubai e-commerce center, boosting throughput by 50% and cutting labor costs by 15% in high-volume hubs like Riyadh, aligning with the region's USD 1.6 billion warehouse automation market by 2025.

● Demand Forecasting for E-Commerce Fulfillment: Machine learning integrates sales data from platforms like Noon to predict inventory needs, minimizing stockouts by 35% and supporting last-mile efficiency in urban centers such as Doha, where CEP services are growing at 7.18% CAGR through 2030.

● Fraud and Risk Detection in Supply Chains: AI monitors anomalies in cross-border shipments via IoT sensors, slashing fraud by 30% and enhancing compliance for secure logistics valued at USD 2 billion in 2025, particularly in cash-in-transit operations across Saudi Arabia and UAE.

● Sustainability Analytics for Green Logistics: AI optimizes fuel-efficient paths and electric vehicle fleets, cutting emissions by 20% in line with net-zero goals, as piloted by Maersk's Jeddah park, enabling eco-friendly reefer transport for the GCC's food import-heavy supply chains.

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How Vision 2030 is Transforming GCC Logistics Industry

Saudi Arabia's Vision 2030 is profoundly transforming the GCC logistics industry by spearheading infrastructure mega-investments and regulatory harmonization, positioning the region as a global trade nexus that amplifies connectivity across borders and drives non-oil growth. Through the National Industrial Development and Logistics Program, over USD 2.66 billion has been allocated to 59 logistics zones by 2030, including expansions at King Abdulaziz Port and NEOM, enhancing cargo throughput by 40% and inspiring UAE and Qatar to align with shared rail networks that reduce cross-GCC transit times by 25%, fostering a unified market valued at USD 172.08 billion in 2024.

Moreover, the vision's sustainability mandate integrates AI and green tech into supply chains, with policies like the Saudi Green Initiative mandating low-emission fleets and carbon tracking, attracting FDI exceeding USD 10 billion in 2025 for eco-warehousing and drone corridors. This has spurred collaborations, such as Saudi-Bahrain logistics pacts, creating 50,000 jobs and bolstering resilience against Red Sea disruptions, while elevating SME participation through eased customs and digital platforms that streamline 70% of intra-GCC trade.

Ultimately, by embedding logistics into diversification agendas, Vision 2030 catalyzes innovation, targeting a 10% GDP contribution and projecting the Saudi segment at USD 60 billion by 2030. This framework not only mitigates oil volatility but establishes the GCC as a resilient, tech-driven hub, harmonizing economic ambitions with sustainable connectivity for regional prosperity.

GCC Logistics Market Trends & Drivers:

The explosive growth of e-commerce has solidified as a dominant trend in the GCC logistics market, driven by over 95% smartphone penetration and a young demographic demanding rapid last-mile deliveries amid online sales projected to hit USD 50 billion by 2025. Valued at USD 172.08 billion in 2024, the sector benefits from CEP services expanding at 7.18% CAGR through 2030, with dark stores and drone pilots in Dubai slashing fulfillment to under 30 minutes, while partnerships like Cainiao's pan-GCC network enhance cross-border efficiency for SMEs in Riyadh and Abu Dhabi.

Digital transformation through AI and automation represents another key driver, as governments invest over USD 1.8 billion in smart technologies to streamline operations and real-time tracking, fueled by Vision 2030's digital push that processed 79% non-cash transactions in Saudi Arabia by 2024. This evolution, supported by IoT and blockchain, has propelled warehouse automation to USD 1.6 billion by 2025, reducing costs by 15% for incumbents and enabling neobanks to handle complex remittances, appealing to affluent millennials in a USD 15 billion AI-smart logistics segment.

Economic diversification and infrastructure mega-projects are pivotal trends propelling the sector, with USD 266 billion committed to 59 Saudi logistics zones and UAE's Dubai 2040 Plan creating demand for resilient multimodal networks amid 30% global trade via the Red Sea. Backed by FDI exceeding USD 10 billion in 2025, this has cut import dependencies by 15% through local hubs like Jeddah's 225,000 sqm park, projecting the market to USD 293.2 billion by 2033 at 5.70% CAGR while generating 100,000 jobs in green supply chains.

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GCC Logistics Industry Segmentation:

The report has segmented the market into the following categories:

Breakup by Model Type:

● 2 PL
● 3 PL
● 4 PL

Breakup by Transportation Mode:

● Roadways
● Seaways
● Railways
● Airways

Breakup by End Use:

● Manufacturing
● Consumer Goods
● Retail
● Food and Beverages
● IT Hardware
● Healthcare
● Chemicals
● Construction
● Automotive
● Telecom
● Oil and Gas
● Others

Breakup by Country:

● Saudi Arabia
● United Arab Emirates
● Qatar
● Kuwait
● Oman
● Bahrain

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in GCC Logistics Market

● October 2025: Kitopi expanded to 300 virtual brands in Riyadh, leveraging AI for 25% order growth and adding 1,000 jobs in sustainable packaging amid Vision 2030's SME support.

● November 2025: Deliveroo launched drone deliveries in Dubai, partnering with cloud kitchens for 15-minute service and boosting efficiency by 30% during peak festive demand.

● October 2025: Jahez reported 40% user surge in Bahrain, driven by personalized menus and eco-hubs that recycled 20% of waste, aligning with regional green initiatives.

● September 2025: CloudEats opened 10 new shared facilities in Doha, handling 50% of app orders with automated prep tech and creating 300 logistics roles.

● November 2025: Noon Food piloted AI-optimized cloud pods in Abu Dhabi, cutting prep times by 20% and attracting USD 100 million in funding for GCC-wide rollout.

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