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Middle East and Africa Freight and Logistics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Product Code : MDAT00122307
Survey : Mordor Intelligence
Publish On : 12, August, 2022
Category : Automotive and Transportation
Study Area : North America (U.S. and Others), Europe (Germany, France, U.K. and Others), Asia-Pacific (Japan, China, India and Others), Rest of World (Brazil, Rest of Latin America, Middle East & Others)
Report format : PDF
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 - DHL
- FedEx
- Kuehne + Nagel
- United Parcel Service Inc
- RAK Logistics
- Al-Futtaim Logistics
- Agility Logistics
- Saudi Transport & Investment Co. (Mubarrad)
- Almajdouie Group
- Ceva Logistics
- Gulf Agency Company (GAC)
- Orange Pallet Ltd
- General Silos and Storage
- Al-Nasr Service and Maintenance Co. (Queen Service)
- International Freight Group
- Egyptair Cargo
- El Salam Group*

[Report Description]

The Middle East and Africa Freight and Logistics Market are estimated to grow at a CAGR of approximately 4% during the forecast period.

During the past decade, globalization and technology have created new opportunities for internationalization, boosting the supply chains and competitiveness in Africa. Currently, the most important countries in terms of logistics are Algeria, Angola, the Democratic Republic of Congo, Egypt, Ghana, Kenya, Mozambique, Nigeria, South Africa, and Tanzania. Some of them own the most important ports in the continent: Barra does Dande and Lobito in Angola, Lekki in Nigeria, Musoma in Tanzania, and Lamu in Kenya. The political instability of some countries makes territorial integration inappropriate in the short term, at least. Domestic markets are predominant in this zone since there is little interaction among regions, which has led to a stagnation in exports. The economy is highly dependent on mining, which represents a third of the Gross Domestic Product (GDP). Morocco is a stable partner. Meanwhile, Egypt and Algeria are the countries with the highest production values, but they are known by how little they interact internationally and because they lack developed logistics corridors. African logistics companies are going beyond megacities and are looking to connect Africa’s rural communities to regional supply chains. While megacities attracting millions of young Africans are growing across the country, Africa’s population remains predominantly rural.

In recent years and despite economic headwinds swirling around the Arabian Gulf, the logistics sector continues to occupy the fast lane. Not only is the logistics arena outperforming other major industries, it is now rightly-regarded as a crucial enabler in the country’s economic diversification efforts.

Despite a sustained period of decline over the last few years affected by a fall in oil prices and geopolitical strife, the Middle East and Africa is fast becoming a region of automotive and supply chain opportunity. Carmakers such as VW, Toyota, GM, Groupe PSA and Mercedes-Benz are investing in local assembly, ranging from North African countries including Morocco, Algeria and Egypt, to sub-Saharan markets such as Rwanda, Ethiopia, Kenya and Ghana. There are also some notable logistics developments there and in the Middle East.

Key Market Trends

Demand for airport infrastructure:

Africa and the Middle East are poised to grow significantly, with the Middle East witnessing 4.3 percent growth annually (roughly 500 million passengers) and a contribution to GDP of nearly US 345 billion. Africa is similarly forecasted to double with a 4.6 percent annual growth rate translating to an additional 199 million passenger journeys for a total of 334 million passengers. Cargo volumes are also estimated to double in both regions. At such levels, several challenges and opportunities arise. For airports in Africa and the Middle East, this presents a stellar opportunity to both capitalize on the growth potential and prepare for change, keeping the airlines and consumers at the heart of what is developed and how it serves the national interest.

In the Middle East, the vast number of significant airport capital expansion programs are led by demand coming from the growth of domiciled carriers, but also the geographic proximity to major source markets such as the Indian subcontinent and intercontinental traffic flows, not to mention MENA regional travel. This, coupled with a favorable regulatory environment and governments which have understood and harnessed the value of aviation, has led to the development of airport hubs which are catering to some of the largest movements of passenger and cargo traffic globally.

Airports in the Gulf have led this trend with Dubai, Abu Dhabi, Bahrain, Doha, Muscat and Jeddah as some examples of airports investing billions of dollars in infrastructure but also focusing on what is needed to improve the passenger experience. This is in part due to the close symbiotic relationships the airports have with domiciled carriers such as Emirates Airline, Etihad Airways, Qatar Airways and Saudi Arabian Airlines, which enable most stakeholders in the value chain to work together and develop an end-to-end experience, serving the industry and the respective local economies.

Airports in the Middle East, like their global peers, aspire to overcome project development challenges through effective stakeholder collaboration, capitalising on digitisation, the airport retail revolution and non-aeronautical opportunities. In addition, they aim to create personalised experiences offering guests a sense of place with enough capacity. Another notable trend in the Middle East is airport developers striving to achieve green building credentials, both through international certifications and those which are developed by national programmes, whilst also working towards ACI carbon accreditation.

E-commerce driving the logistics Industry:

Digital adoption in MENA has not followed the path typically seen in other markets. As consumers move online, businesses typically follow suit, enabling a gradual development of the digital ecosystem in areas such as media and e-commerce. MENA’s experience has been different.

The e-commerce industry across the Middle East is growing fast, due to the high levels of internet penetration and the rising GDP of many countries from Bahrain to Saudi Arabia.

While many of the Middle East’s imports have historically come from China, increasing numbers of shoppers in the region are buying from further afield. Across the Middle East, Amazon and eBay are used just as frequently (and sometimes more) than local sites such as Cobone, Souq, and Sukar.

The purchasing power of the ME region comes largely from an extremely young population; in Saudi Arabia, over 55% of the population is under 30. Young, digital-savvy shoppers are driving smartphone use in the region to over 65% and internet penetration to over 90% in the UAE, Bahrain and Qatar. As a result, E-commerce is growing steadily.

Competitive Landscape

The Middle East and Africa Freight and Logistics Market are fragmented, Both international and local players are present in the market, the market is dominated by major international players like DHL, FedEx, and UPS. the market is expected to grow during the forecast period due to growing e-commerce, growing infrastructure in the region, and many other factors that are driving the market.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format

  • 3 months of analyst support

1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study



4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Value Chain / Supply Chain Analysis
4.5 Porters Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Impact of COVID - 19 on the market

5.1 By Function
5.1.1 Freight Transport Road Inland Water Air Rail
5.1.2 Freight Forwarding
5.1.3 Warehousing
5.1.4 Value-added Services and Other Functions
5.2 By End User
5.2.1 Manufacturing and Automotive
5.2.2 Oil and Gas, Mining, and Quarrying
5.2.3 Agriculture, Fishing, and Forestry
5.2.4 Construction
5.2.5 Distributive Trade (Wholesale and Retail Segments - FMCG included)
5.2.6 Other End Users (Telecommunications and Pharmaceuticals)
5.3 By Country
5.3.1 Qatar
5.3.2 Saudi Arabia
5.3.3 United Arab Emirates
5.3.4 Egypt
5.3.5 Rest of Middle East and Africa

6.1 Overview (Market Concentration and Major Players)
6.2 Company Profiles
6.2.1 DHL
6.2.2 FedEx
6.2.3 Kuehne + Nagel
6.2.4 United Parcel Service Inc
6.2.5 RAK Logistics
6.2.6 Al-Futtaim Logistics
6.2.7 Agility Logistics
6.2.8 Saudi Transport & Investment Co. (Mubarrad)
6.2.9 Almajdouie Group
6.2.10 Ceva Logistics
6.2.11 Gulf Agency Company (GAC)
6.2.12 CHEP
6.2.13 Orange Pallet Ltd
6.2.14 General Silos and Storage
6.2.15 Al-Nasr Service and Maintenance Co. (Queen Service)
6.2.16 International Freight Group
6.2.17 Egyptair Cargo
6.2.18 El Salam Group*


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