United Arab Emirates (UAE) Freight Forwarding Market Research Report, 2029

The freight forwarding market in the UAE faces several drivers and challenges, influenced by both regional factors and global trends. The UAE has placed significant emphasis on developing its railway infrastructure in recent years. In March 2023, the country inaugurated its national railway network, Etihad Rail, spanning an impressive 900 km. The network is now operational for cargo trains, connecting all the Emirates. The fleet consists of 38 locomotives and over 1,000 wagons, designed to efficiently transport a wide range of goods. The primary route of the UAE National Railway Network stretches from Ghuweifat, on the Saudi Arabian border, to Fujairah, traversing diverse geographical landscapes. In the UAE, government regulations on the freight forwarding market are stringent and aimed at ensuring efficiency and compliance. Customs regulations govern import and export procedures, including clearance and tariff classification. Freight forwarders must obtain specific licenses from authorities like the Ministry of Economy and adhere to transportation regulations for road, air, and sea freight. Security measures are also enforced to safeguard cargo integrity throughout the logistics chain. These regulations play a critical role in maintaining transparency, security, and operational standards within the UAE's dynamic logistics sector. The UAE's geographical location between East and West positions it as a crucial hub for global trade and logistics. This strategic advantage makes it a natural choice for freight forwarding activities. Adherence to local regulations, customs procedures, and compliance with international trade laws can be complex and time-consuming, impacting the efficiency of operations. Fluctuations in oil prices and global economic conditions can impact trade volumes and consumer demand, influencing the overall demand for freight forwarding services. According to the research report "UAE Freight Forwarding Market Research Report, 2029," published by Actual Market Research, the UAE freight forwarding market is anticipated to grow at more than 6 % CAGR from 2024 to 2029. Freight forwarders in the UAE market seem quite promising, at least among some sources and elements. The one is the strong economy of the UAE which is diversified into supporting industries: oil and gas, manufacturing, retail, and tourism, and thus gives a good ground for long-term logistics and trade growth. Operational benefits arise from the country's strategic location at the crossroads of East and West including its superior infrastructure, which goes from ports like Jebel Ali to airports such as Dubai International, therefore makes it a superlative logistical place for global supply chains. In addition, the UAE has heavily invested in the development of infrastructure to keep expanding capacity and efficiency in the ability to handle freight. For instance, examples of investments include the Dubai Logistics Corridor and the Khalifa Port Free Trade Zone, thereby further attesting the commitment by the government toward addressing logistical capability enhancement for the promotion of smoother and more affordable movement of goods. It is a key resource that shapes the landscape of the UAE economy. The revenues allow continued investments in infrastructure and support the efforts toward diversification. In as much as the world is moving into renewable sources of energy, a country like UAE is proactive in responding to these changes through projects like the Abu Dhabi Economic Vision 2030, which only proves that it is well prepared to shift to sustainable growth in logistics or even beyond.

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The segment that is estimated to lead the freight forwarding market of the United Arab Emirates is the Industrial & Manufacturing sector. The UAE occupies a strategically significant position with respect to the global trade market and is considered to be a potential country for business due to its advanced infrastructure, such as ports and logistic facilities. The economic diversification process in the country has boosted manufacturing activities to a high extent, thereby increasing the demand for efficient freight forwarding services in order to transport raw materials and finished goods. Besides, the country's strong focus on exports and imports in sectors such as petrochemicals, metals, and machinery further drives the growth of this segment. The retail and e-commerce segment also represents a high proportion because the UAE has established itself as a 'shopping destination', and, on the other hand, online retail is rapidly growing. Increasing consumer demand for international products and timely delivery has boosted the requirement for reliable freight forwarding services. Another critical sector is the automotive segment, which is fostered by the country's acting as a re-export hub for vehicles and auto parts into regional markets. On the other hand, the consumer goods sector has had good performance, driven by the high fraction of expatriates in the UAE's population and high disposable income levels, boosting demand for imported goods. Moreover, the healthcare segment is growing rapidly because of the commitment by the UAE to upgrade health infrastructure and services. In addition, steadily increasing demand for pharmaceuticals, medical equipment, and related supplies necessitates specialized freight forwarding services that will ensure the safe and timely delivery of these very critical items. Government initiatives in the form of promoting medical tourism and enhancing healthcare facilities further accelerate growth in this segment. Transportation and Warehousing is the segment that currently leads the freight forwarding market of the United Arab Emirates. Geographically, this country occupies a strategic position and is equipped with the latest infrastructure. Geographically, the UAE can be treated as the gateway between the East and West and this country turns out to be one of the major hubs in world trade. The advanced facilities of the ports, such as Jebel Ali Port, and the road networks have maximally strengthened the transport sector. Again, the availability of large warehousing facilities with modern technology assures effective storage and distribution of goods, thereby fueling the growth of this segment. The role of the Packaging segment in the freight forwarding market is of immense importance in having the goods moved safely and securely. Specialized packaging solutions are coming more and more into demand due to the wide range of products that are being shipped, which may include fragile goods, hazardous materials, and temperature-sensitive products. Moreover, the growth in e-commerce has also fueled this segment through the attendant demand for protective packaging against damage in transit. The documentation segment is an intrinsic part of freight forwarding and includes customs clearance, import/export documentation, and management of compliance with regulations. The value-added services segment is also gaining momentum, driven by the same factors. Value-added services include inventory management, order fulfillment, cross-docking, and reverse logistics. The need for value-added services has increased in the recent past as companies try to optimize the efficiency of their supply chain while reducing operation costs. It is further fueled by modern logistics facilities located within the UAE and a very fast-developing, increasingly complex supply chain. Therefore, freight forwarders have started to offer more tailored solutions to customers in order to enhance their unique requirements so that the competitive edge which they hold in the market is much better enhanced. In the freight forwarding market of the UAE, Ocean Freight forwarding is leading, mainly due to geographical coastal location and well-developed port infrastructure. Some of the busiest ports in the world are situated in the UAE, for example, Jebel Ali Port in Dubai, which serves as a critical hub for global maritime trade. Ocean freight is always in demand, especially in the UAE, considering the robust nature of import and export activities, as it is cost-effective and has the capacity to carry a great volume of products. Air Freight forwarding grows significantly, impelled by the rising demand for quick and reliable transportation for time-critical and high-value goods. The well-developed aviation infrastructure in the UAE includes all major airports, like Dubai International Airport and Abu Dhabi International Airport, making air cargo operations easier. Growing e-commerce, pharmaceuticals, and perishable goods sectors further accelerated the demand for freight services by air. Besides, the UAE being a global cargo hub with extensive connectivity through flights is another reason for this segment's growth. This forms an integral part of the freight forwarding market in the UAE, supported by its comprehensive and well-maintained road networks. This segment principally stays at the core of regional trade that links the UAE with neighboring countries in the GCC and the Middle East region. Road freight has higher preference as compared to others because it is flexible, cost-effective over short to medium distances, and feasible for carrying many types of goods. Rail Freight Forwarding although the smallest segment at this point is bound to grow further as the UAE continues to build up its railway infrastructure. The Etihad Rail project will be targeted at interconnecting major industrial centers and ports within the UAE, with the long-term perspective of linking up with the general Gulf Cooperation Council (GCC) rail network to develop rail freight forwarding.

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Nikita Jabrela

Business Development Manager

Within the UAE freight forwarding market, the Business to Business (B2B) segment is the leading segment, which is mainly attributed to the advanced trading and industrial base of the country. This country serves as the global hub for the import, export, and re-export of goods channelled between businesses across almost all industries. Prevailing manufacturing, retail, automotive, and healthcare segments provide substantial demand for B2B freight forwarding. In addition, with the UAE's strategic geographical location and superior, developed logistical infrastructure, it is possible to provide any type of goods efficiently and at low costs, further bolstering the supremacy of the B2B segment. The Business-to-Consumer segment is growing at a very fast pace, driven by increasing activities in e-commerce and an alteration of consumer behavior. Internet penetration is very high in the UAE, and its population is increasingly tech-savvy, preferring to shop online. That has increased demand for effective and reliable B2C freight forwarding services. This segment focuses on the delivery of goods directly to customers and is, therefore, likely to need specialized logistic solutions, including last-mile delivery, real-time tracking, and flexible scheduling. It further boosts growth driven by global e-commerce giants and an increase in the number of local online retailers in the UAE. Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • Freight Forwarding market Outlook with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation

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By End-User • Industrial & Manufacturing • Retail and E-commerce • Automotive • Consumer Goods • Healthcare • Others By Service Type • Transportation and Warehousing • Packaging • Documentation • Value-added Services By Transport Mode • Ocean Freight forwarding • Air Freight forwarding • Road Freight forwarding • Rail Freight forwarding By Customer Type • B2B • B2C The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Freight Forwarding industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.