UAE Third-Party Logistics Market to Reach USD 8 Bn by 2031 Amid E-commerce, Free Zone Expansion, and Multimodal Integration

United Arab Emirates Third-Party Logistics Market Overview 

According to Mordor Intelligence, the United Arab Emirates third-party logistics market size is estimated at USD 5.60 billion in 2026 and is expected to reach USD 8.82 billion by 2031, registering a CAGR of 9.52% during the forecast period. This steady market growth reflects the country’s expanding trade ecosystem, strong e-commerce demand, and continued infrastructure investment across ports, airports, and rail corridors. The United Arab Emirates third-party logistics industry benefits from the country’s strategic position between Asia, Europe, and Africa. Its role as a re-export and transshipment hub continues to strengthen as multimodal connectivity improves.  

In addition, digital retail penetration, free-zone clustering, and government-backed logistics strategies are shaping United Arab Emirates third-party logistics market trends. Providers are expanding fulfillment centers, upgrading temperature-controlled infrastructure, and adopting hybrid operating models to balance asset ownership and network flexibility. Ongoing projects such as the expansion of Al Maktoum International Airport and the completion of Etihad Rail are improving integration between sea, air, road, and rail networks, reinforcing the market forecast over the next five years. 

Growth Drivers in the United Arab Emirates Third-Party Logistics Market 

Rapid E-commerce Expansion 

E-commerce is one of the strongest drivers of UAE third-party logistics market growth. Digital retail’s share of total transactions is rising sharply, resulting in a significant increase in parcel volumes. To manage this surge, 3PL providers are investing in micro-fulfillment centers, automated sorting systems, and last-mile delivery platforms. Dubai and Abu Dhabi remain the focal points of online retail demand. The reduction in cash-on-delivery transactions and wider use of digital wallets have streamlined order cycles. As a result, United Arab Emirates third-party logistics market share in value-added warehousing and last-mile services is expanding. Retailers increasingly rely on external logistics partners to manage inventory visibility, returns handling, and multichannel order processing. 

National Logistics Strategy and Infrastructure Development 

The UAE Logistics Strategy aims to enhance the country’s role as a global logistics hub. Expansion of Al Maktoum International Airport and integration of the Etihad Rail network are strengthening multimodal capabilities. These initiatives support the United Arab Emirates third-party logistics market forecast by reducing transit times and improving cargo connectivity across emirates. Regulatory reforms, including unified customs clearance systems and increased foreign ownership allowances in certain sectors, are also contributing to United Arab Emirates third-party logistics industry competitiveness. These measures make the market more attractive to multinational shippers seeking efficient Gulf gateways. 

Free-Zone Fulfillment Hubs 

Free zones such as Jebel Ali Free Zone and National Industries Park continue to attract manufacturers and distributors. These zones provide tax benefits, bonded warehousing, and faster customs processes. As a result, integrated logistics solutions including kitting, packaging, and reverse logistics are witnessing rising demand. The growth of free-zone-based fulfillment centers is strengthening United Arab Emirates third-party logistics market size, particularly for re-export shipments to Africa and South Asia. Activity is gradually expanding beyond Dubai to Abu Dhabi’s industrial clusters and northern emirates. 

Rising Cold Chain and Healthcare Logistics Demand 

Healthcare investment and growing pharmaceutical trade are driving cold chain requirements within the United Arab Emirates third-party logistics industry. Demand for GDP-compliant storage, temperature-controlled transport, and specialized handling services is increasing steadily. Food and beverage imports also contribute to market growth. Fresh produce distribution and large-scale food hubs are increasing reliance on refrigerated warehousing and validated packaging solutions. Providers with multi-temperature facilities are strengthening their United Arab Emirates third-party logistics market share in healthcare and food sectors. 

Check out more details and stay updated with the latest industry trends, including the Japanese version for localized insights: https://www.mordorintelligence.com/ja/industry-reports/united-arab-emirates-3pl-market?utm_source=industrytoday.co.uk  

United Arab Emirates Third-Party Logistics Market Segmentation 

By Service Type 

• Domestic Transportation Management 
• International Transportation Management 
• Value-Added Warehousing and Distribution 

By End-User Industry 

• Automotive 
• Energy & Utilities 
• Manufacturing 
• Life Sciences & Healthcare 
• Retail & E-commerce 
• Food & Beverage 

By Logistics Model 

• Asset-Light 
• Asset-Heavy 
• Hybrid 

By Emirate 

• Dubai 
• Abu Dhabi 
• Rest of the UAE 

Explore Our Full Library of Logistics Research Reports: 

https://www.mordorintelligence.com/market-analysis/logistics?utm_source=industrytoday.co.uk 

Key Players in the United Arab Emirates Third-Party Logistics Industry 

• Aramex 
• DHL Global Forwarding 
• GAC 
• CEVA Logistics (CMA CGM) 
• FedEx Logistics 

Explore more insights on the United Arab Emirates third-party logistics competitive landscape: https://www.mordorintelligence.com/industry-reports/united-arab-emirates-3pl-market/companies?utm_source=industrytoday.co.uk  

Conclusion 

The market is on a steady growth path supported by infrastructure expansion, rising e-commerce activity, and increasing demand for specialized logistics services. The combination of multimodal connectivity, free-zone advantages, and regulatory support strengthens the long-term United Arab Emirates third-party logistics market forecast. 

Although cost pressures from labor shortages and warehouse rents present challenges, providers are adapting through operational optimization and selective asset investment. As the country continues to strengthen its position as a global trade bridge, the United Arab Emirates third-party logistics market size and share are expected to expand steadily, reinforcing its importance within the broader regional logistics landscape. 

For more insights on the United Arab Emirates third-party logistics market, please visit the Mordor Intelligence page: https://www.mordorintelligence.com/industry-reports/united-arab-emirates-3pl-market?utm_source=industrytoday.co.uk  

Industry Related Reports: 

Japan Third-Party Logistics (3PL) Market 

The Japan Third-Party Logistics Market size in 2026 is estimated at USD 38.44 billion, growing from USD 37.38 billion in 2025 and projected to reach USD 44.19 billion by 2031, registering a CAGR of 2.83% during 2026–2031. Growth is driven by rising e-commerce penetration, demand for temperature-controlled logistics, automation in warehousing, and increasing outsourcing by manufacturers to improve supply chain efficiency. 

Mexico Third-Party Logistics (3PL) Market Size 

The Mexico 3PL market size in 2026 is estimated at USD 25.51 billion, increasing from USD 24.14 billion in 2025 and forecast to reach USD 33.58 billion by 2031, expanding at a CAGR of 5.66% over 2026–2031. Market growth is supported by nearshoring trends, expansion of cross-border trade with the United States, rising industrial production, and growing demand for integrated warehousing and transportation solutions. 

Europe Contract Logistics Market Share 

The Europe Contract Logistics Market size in 2026 is estimated at USD 94.72 billion, up from USD 91.87 billion in 2025 and projected to reach USD 110.25 billion by 2031, at a CAGR of 3.10% during 2026–2031. Growth is driven by increasing e-commerce activity, sustainability initiatives in supply chains, adoption of digital logistics platforms, and rising demand for end-to-end outsourced logistics services across retail, automotive, and manufacturing sectors. 

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