GCC Contract Logistics Market 2022-2027: Growth, Trends, Covid-19 Impact, And Forecasts – ResearchAndMarkets.com – Press Release

The “GCC Contract Logistics Market – Growth, Trends, Covid-19 Impact, And Forecasts (2022 – 2027)” report has been added to ResearchAndMarkets.com’s offering.

GCC Contract Logistics Market (henceforth, referred to as the market studied) is expected to register a CAGR of more than 7% during the forecast period (2022 – 2027).

Following the onset of COVID-19, various logistics companies experienced obstacles including supply-chain capacity bottlenecks and government restrictions, which resulted in the suspension of important services on particular routes, as well as cost pressure and supply chain management issues.

Contract logistics service providers who have used automated technology, on the other hand, have acquired advantages in dealing with the epidemic and the subsequent lockdowns.

The UAE is party to several multilateral and bilateral trade agreements, including with partner countries in the GCC. As part of the GCC, the UAE has strong economic ties with Saudi Arabia, Kuwait, Bahrain and Oman. Under the Greater Arab Free Trade Area Agreement (GAFTA), the UAE has free trade access to Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Syria, Tunisia, and Yemen.

The UAE has also signed agreements with other countries including Pakistan, Algeria, India, South Korea, and the Netherlands. The country has been focusing on improving its trade agreements to develop the level of trade and economic cooperation in accordance with the laws prevailing in each country and diversify sources of the economy and sustainable development.

Key Market Trends

Growth in E-commerce Driving the Market:

To facilitate the trade and e-commerce market, the UAE is implementing initiatives for the development of its infrastructure and technology, to implement a well-integrated transport system and logistics infrastructure. In 2020, the UAE was the 30th largest market for eCommerce with a revenue of USD 6 billion.

The increase in e-commerce activities is expected to largely drive the market for freight forwarding in the country. In the second quarter of 2021 statistics from the “State of the Retail Sector in the UAE” study highlighted that the recovery that began earlier in the year appeared to be continuing.

According to the report, e-commerce sales in the UAE increased by 17% in the first half of 2021 compared to the same time the previous year. In the third quarter of 2021, Dubai’s consumer confidence reached its best level in over ten years. When compared to the same quarter in the previous year, e-commerce will expand by 34% in the third quarter of 2021. From the previous year.

E-commerce in Saudi Arabia is experiencing a rapid spike in growth amid the COVID-19 outbreak, demanding stronger supply chains which in turn will act as a driver for the growth of the freight forwarding market. Saudi Arabia is the 25th largest market for eCommerce with a revenue of USD 7 billion in 2020.

With an increase of 34%, the Saudi Arabian eCommerce market contributed to the worldwide growth rate of 29% in 2020. The growing exposure of social media platforms in the region has also contributed to more online engagement, which has trickled down into eCommerce sales for businesses in the country. E-commerce is expected to be one of the biggest growth drives for the freight forwarding market in Saudi Arabia going forward.

According to sources, the number of users is expected to amount to 34.5 million by 2025, and user penetration is expected to grow to 92.5% by 2025. From the beginning of the year 2021 to the end of August, e-commerce sales in Saudi Arabia totaled SAR 44.244 billion (USD 11.7 billion), topping previous years’ purchases.

Increasing Pharmaceutical and Healthcare Driving the Market:

The Saudi Pharma market is looked at as one of the fastest-growing markets today with strong export potentials to serve MENA and OIC (Organization of Islamic Countries) with a total market of USD 120 billion. The demand for pharmaceuticals in Saudi Arabia is expected to register substantial growth owing to the increasing penetration of health insurance companies and the rising incidence rate of non-communicable diseases.

Furthermore, the exceptional rise in the per capita income of Saudi Arabia is also expected to foster the demand for branded pharmaceutical drugs. Another key factor driving the growth of the pharmaceutical market in Saudi Arabia is the country’s strategic move to allow 100% FDI in the pharmaceutical sector.

Over 81 % of generic pharmaceuticals taken in Saudi Arabia are imported, and the country currently has only one significant API manufacturer. The Kingdom’s generics market grew to USD 763 million in 2020, accounting for 72 % of the Middle East and North Africa (MENA) industry.

Companies Mentioned

• Agility Logistics Pvt. Ltd.
• Ceva Logistics
• Yusen Logistics Co.Ltd.
• Hellmann Worldwide Logistics GmbH & Co. KG
• DB Schenker
• Gulf Warehousing Company QPSC (GWC)
• Al Futtaim Logistics
• Mac World Logistics LLC
• Almajdouie Logistics Co. Llc.
• Deutsche Post DHL Group (DHL Supply Chain)

For more information about this report visit https://www.researchandmarkets.com/r/3zs7cf

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