Is the Middle East logistics market surging? What are the trends in the next five years?
According to a data report from Mordor Intelligence, the logistics market in the Middle East is expected to grow at a compound annual growth rate of 6% over the next five years. The annual air transportation volume in the Middle East region will continue to grow, and it is estimated that the freight volume of most countries in the region will double. In the Middle East, a large number of important airport capital expansion plans are driven by the demand brought about by the growth of registered airlines.
Airports in the Gulf region have led this trend, with Dubai, Abu Dhabi, Bahrain, Doha, Muscat, and Jeddah investing billions of dollars in infrastructure and focusing on improving the passenger experience. This investment is due to the close symbiotic relationship established between the airport and registered carriers such as Emirates Airlines, Etihad Airways, Qatar Airways, and Saudi Arabian Airlines, which enables most stakeholders in the value chain to collaborate and develop end-to-end services to serve the industry and their respective local economies.
E-commerce will also lead the animal flow industry. Due to the high penetration rate of the internet and the continuous growth of GDP in many countries, including Bahrain and Saudi Arabia, the e-commerce industry in the entire Middle East region is developing rapidly. Although many imported goods from the Middle East have always come from China, an increasing number of shoppers in the region are also purchasing goods from different platforms. Throughout the Middle East, Amazon and eBay are used the same frequency as local Middle Eastern websites such as Cobone, Souq, and Sukar.
The purchasing power of the Middle East region mainly comes from young people. In Saudi Arabia, over 55% of online shopping is done by young people under the age of 30. As more and more people engage in online shopping, e-commerce is steadily growing, which will also lead to the growth of the animal flow industry trend.
(Article reprinted: Cross border e-commerce remittance in the Middle East)
