UAE Logistics Market Size is Expected to Reach USD 95.2 Billion By 2033 | CAGR: 5.7%

UAE Logistics Market Overview

Market Size in 2024: USD 54.5 Billion

Market Size in 2033: USD 95.2 Billion

Market Growth Rate 2025-2033: 5.7%

According to IMARC Group's latest research publication, "UAE Logistics Market Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", the UAE Logistics market size was valued at USD 54.5 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 95.2 Billion by 2033, exhibiting a CAGR of 5.7% from 2025-2033.

How AI is Reshaping the Future of UAE Logistics Market

● Route Optimization and Real-Time Tracking AI algorithms process traffic, weather, and shipment data to dynamically optimize delivery routes. In UAE hubs like Dubai and Abu Dhabi, this reduces fuel costs by 15-20% and speeds up last-mile deliveries for e-commerce and freight.

● Predictive Demand and Inventory Management Machine learning forecasts demand patterns from trade flows and events. Logistics firms minimize overstock, enhance warehouse efficiency, and support just-in-time operations amid surging non-oil exports.

● Automation in Warehousing and Fulfillment AI-powered robotics and autonomous systems handle picking, sorting, and packing in advanced facilities. This boosts throughput in free zones, cuts labor dependency, and accelerates processing for high-volume sectors.

● Supply Chain Visibility and Risk Mitigation AI enables end-to-end tracking with anomaly detection for disruptions. It strengthens resilience against geopolitical issues, ensuring reliable multimodal transport across ports, airports, and rail.

● Sustainability and Green Logistics AI optimizes energy use in fleets and predicts low-emission paths. This aligns with UAE Net Zero goals, promoting electric vehicles and carbon tracking in logistics operations.

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How We the UAE 2031 is Revolutionizing UAE Logistics Industry

Overall, 'We the UAE 2031' vision seeks to transform logistics. By 2031, logistics will contribute more than AED 200 billion to GDP, non-oil exports will reach AED 800 billion, and GDP will double to AED 3 trillion. The UAE will be one of the three leading countries in logistics performance index and will continue to invest heavily in ports, airports, rail including Etihad, multimodal platforms, thus ‌creating a global trade gateway for the UAE.

It seeks to diversify the economy by stimulating trade through the Emirates Council for Logistics Integration, improving regulations, smart services, sustainability, public-private partnerships, foreign direct investment (FDI), strengthening free zones and promoting digitization and ‌optimization.

Driving mega-projects and tourism, along with air cargo, express and warehousing services, combined with innovation, a skilled workforce and green logistics will help develop resilient high-tech logistics ‌ecosystems across the region. On the whole raising the sector into a core economic driver, leveraging its calculated location, advanced infrastructure and progressive policies for sustained global competitiveness and trade.

UAE Logistics Market Trends & Drivers

In 2026, the logistics sector in the UAE was estimated to be worth USD 23 billion, growing at a 6-8% CAGR, driven by e-commerce, increased non-oil trade, and infrastructure development. Trends included accelerated warehouse automation, multimodal logistics (use of rail and ports), and increased demand for 3PL. Occupancy in industrial areas was about 95%, which created interest in sustainability with limited available space.

Demand is driven by 'We the UAE 2031' investment in connectivity hubs, positioned between Asia, Europe and Africa, the growth of foreign trade and re-exports and imports, e-commerce in major emirates, easier laws allowing foreign ownership of assets and the institutional demand for Grade A assets which could lead to a rise in rents and pre-leased developments.

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UAE Logistics Industry Segmentation:

The report has segmented the market into the following categories:

Analysis by Model Type:

● 2PL
● 3PL
● 4PL

Analysis by Transportation Mode:

● Roadways
● Seaways
● Railways
● Airways

Analysis by End Use:

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

Analysis by Emirates:

● Abu Dhabi
● Dubai
● Sharjah
● Ajman
● Others

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 UAE Logistics Market

● February 2024: DP World announced the launch of a new multi-client logistics facility at Jebel Ali Free Zone (JAFZA), expanding warehousing capacity and strengthening Dubai's position as a regional re-export and distribution hub.

● September 2024: Abu Dhabi's AD Ports Group completed the acquisition of a majority stake in a regional logistics and freight forwarding company, expanding its integrated logistics footprint across the Middle East and Africa.

● May 2025: Emirates SkyCargo unveiled a dedicated temperature-controlled cargo corridor connecting the UAE with key global pharmaceutical hubs, enhancing cold chain reliability and reinforcing Dubai's role in life sciences logistics.

● January 2026: DP World and Masdar announced a collaboration to accelerate decarbonization across UAE logistics operations, deploying renewable energy solutions and electrified port handling equipment to support the country's net-zero strategy.

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IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provides a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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