Middle East Third-Party Logistics Market Size & Share 2026-2035

Middle East Third-Party Logistics Market Size

Middle East third-party logistics market was estimated at USD 81.3 billion in 2025. The market is expected to grow from USD 86.7 billion in 2026 to USD 173.3 billion in 2035, at a CAGR of 8% according to latest report published by Global Market Insights Inc.

The market is currently undergoing a period of structural growth, driven by investments in infrastructure. The expansion of trade corridors, and the rapid growth of e-commerce, with the UAE and Saudi Arabia being the region's major logistical centers. In addition to making logistics a major source of diversification for their economies beyond oil, governments in the region are making substantial investments in logistics infrastructure.

The region is developing free zones, bonded warehouses, multimodal hubs, and digital customs ecosystems that can attract more manufacturers, retailers, and cross-border sellers to use third-party logistics outsourcing. For example, in January 2026, Emirates SkyCargo announced its “Logistics Strategy for 2026” which rapidly increasing its fleet by adding up to 10 new Boeing 777F freighters by the end of the year, thereby enhancing regional air cargo throughput and continuing to establish Dubai as an intermediary transshipment point between Asia, Europe, and Africa.

The global integrators and regional leaders continue to consolidate their market share primarily through scale, technology, and specialized capabilities instead of through competing on price alone. For instance, in November 2025, a newly formed unit of AKI Logistics, AKI Contract Logistics, announced the establishment of a new dedicated 3PL business unit in the UAE based out of central hubs such as Dubai Industrial City and Dubai Investment Park, emphasizing the increasing demand from both multinational and domestic customers for localized contract logistics, warehousing, and last-mile solutions in the UAE.

COVID-19 caused a lot of disruptions to the Middle East third-party logistics (3PL) market initially due to closed borders, congested ports, labor shortages, and an acute decline in capacity for moving goods by air and sea, which were some of the main reasons for delays throughout many of the regional supply chains. The extensive lockdowns enforced in many areas of the United Arab Emirates (UAE), Saudi Arabia, and other Gulf Cooperation Council (GCC) nations reduced the levels of manufacturing, construction, and automotive activity, which led to lower volumes for freight being transported business to business (B2B) and warehouse throughput from 2020 until 2021.

The UAE is the largest third-party logistics market within Middle East and is supported by two major logistics hubs in Abu Dhabi and Dubai in the region. For example, the Al Mafraq-Al Ghuwaifat Road USD 3.5 billion, a new road will provide faster access from several major industrial zones directly to Jebel Ali Port and the border between Saudi Arabia and the UAE, which has made it easier for logistics providers to move goods more quickly and attract multinational and domestic third-party logistics (3PL) providers to the region.

Middle East Third-Party Logistics Market Trends

Major players in the Middle East are investing heavily in high-capacity, state-of-the-art logistics facilities to meet growing demand and gain competitive advantage. Kuehne + Nagel and Expeditors International are both committing to 23,000m² logistics facilities within Dubai South, highlighting the importance of scale and strategic location to ensure an efficient operation. These investments lead to quicker handling, greater throughput and draw large multi-national clients looking for dependable regional logistics hubs.

This trend illustrates that physical capacity and modern infrastructure are no longer optional; rather, they are prerequisites for success in the Middle East. Large facilities can support integrated warehousing, automated processes and multimodal connections, thus stimulating both B2B and B2C growth. Operators without the necessary infrastructure will likely lose market share to operators able to deliver scale, speed, and reliability as competition becomes more intense.

Governments are also working to improve port and transport infrastructure to strengthen regional trade and increase international integration. A recent example is the signing of a $4.1 billion agreement between Kuwait and China in January 2026 to develop the Mubarak Al-Kabeer Port in Kuwait, with China Communications Construction Company being selected as the lead firm for the EPC phase. This project will enhance Kuwait's position in regional maritime trade and eventually connect to the Belt and Road Initiative.

These types of mega-projects will create quicker flows of cargo, bring in foreign investment and further enhance the capability of 3PL operations. Improved ports, rail, and highway networks reduce transit times, lower costs, and facilitate cross-border trade within the GCC and beyond. For 3PL providers, these developments create new corridors and high-volume opportunities that were previously underutilized.

Countries such as Bahrain look to establish themselves as smart, high-efficiency regional centers by investing in infrastructure and integrating new technology into the nation. The $32 billion investment made by Bahrain has made it a premier logistics center through the construction of a new fast Sea-to-Air hub with services that are 50% faster and 40% cheaper than traditional sea-only or air-only options. Thus, giving businesses using these services a 69% cost advantage over alternative methods. When logistics providers integrate AI and digital technologies into their supply chains, end-users will have faster, more reliable and cost-effective logistics solutions.
 

Middle East Third-Party Logistics Market Analysis

Based on mode, the market is divided into air, sea and rail & road. The air segment dominated the market, accounting for around 44% share in 2025 and is expected to grow at a CAGR of over 7.1% from 2026 to 2035.
 

• The air logistics sector continues to dominate the Middle East third-party logistics market market, due to the increasing quantity of high-value and time-critical shipments and the demand for express delivery services within e-commerce, healthcare and industrial sectors. In February 2026, Etihad Airways transformed their cargo operations by reorganizing, digitizing the tracking of their shipments and improving operational accountability, allowing them to more quickly respond to customers' needs and provide superior levels of service throughout Asia and the Middle East.
   
• The rail and road segment is emerging as the fastest-growing mode for regional freight, fueled by long-distance cargo demand, cost efficiency, and sustainability objectives. In February 2026, The Etihad Rail Authority's nationwide awareness campaign encouraging logistics providers, manufacturers and heavy industry to use rail freight instead of more traditional forms of land transportation will spur additional interest. The combination of continued growth of regional highways and intermodal connections between rail and road services will result in a significant increase in the use of both modes of transportation.

Based on application, the Middle East third-party logistics market is divided into food & beverages, healthcare, retail, automotive, manufacturing, e-commerce & logistics, chemicals & petrochemicals and pharmaceuticals and others. The e-commerce & logistics segment dominates the market, accounting for around 24.2% share in 2025, and the segment is expected to grow at a CAGR of over 10% from 2026 to 2035.
 

• E-commerce continues to dominate due to rapid urbanization, high internet penetration, and cross-border trade growth. Major providers are expanding investments in automated warehouse capabilities, last-mile delivery solutions and real-time visibility technologies to better meet customer demands for faster delivery. Additionally, e-commerce is the largest and most strategically critical component of regional 3PL revenue and will play an increasingly important role in infrastructure and technology developments throughout the GCC.
   
• The segment driven by increasing online retail demand, fast delivery expectations, and expanding fulfilment network opportunities. CargoCrew's entry into the GCC region through its regional headquarters in Dubai in January 2026 is indicative of the UAE's emergence as a prominent global logistics and air freight hub and the growing importance of e-commerce in the GCC region.
   
• The pharmaceutical logistics sector has become the fastest-growing segment within the Middle East and is being driven by an increase in demand for cold-chain solutions, specialized handling of products, and the ability to comply with regulations when distributing health care products. With the acquisition of an 80% interest in Global Medical Supply Chain and Al Ittihad Drug Store in December 2024, Mubadala Investment Company has entered a major expansion of its healthcare logistics operations. This step illustrates a notable trend of increased private sector funding and consolidation within the pharmaceutical distribution market.
   

Based on solutions, the Middle East third-party logistics market is divided into DCC, DTM, ITM, Warehousing & Distribution and Logistics Software. The DTM segment dominated the market and was valued at USD 28.4 billion in 2025.
 

• The domestic transportation management (DTM) segment continues to lead the market and plays an essential role in managing the movement of high-frequency, time-sensitive, and cost-optimized domestic freight. DTM solutions provide the ability to execute route planning, carrier selection, shipping visibility, and last-mile delivery optimization. DTM provides value to the e-commerce, retail, FMCG and manufacturing supply chains through its ability to enable rapid fulfillment, provide just-in-time deliveries, and allow the use of scalable supply chain execution operations. Thus, DTM continues to be the primary area of focus for shippers and logistics service providers.
   
• Warehousing & distribution and Integrated Transportation Modes (ITM) segments are also significant contributors to market expansion. The warehousing & distribution segment provides the necessary support to facilitate efficient inventory management, order fulfillment and omnichannel logistics. The ITM segment assists with cross border trade, international freight forwarding, and customs compliance. Additionally, the Direct Channel (DCC) solutions additionally support long term dedicated fleet requirements, while Logistics Software solutions provide the visibility, analytics and automation across the logistics networks.

UAE dominated Middle East third-party logistics market with revenue of USD 39.6 billion in 2025.
 

• The UAE remains the largest and most developed 3PL market in the Middle East, driven by strong trade flows, e-commerce growth, and world-class infrastructure. The UAE is key regional and gateway for global supply chains; hubs like Dubai, Abu Dhabi and other areas in the UAE continue to attract large multinational logistics providers because of the free zones, sophisticated ports and multimodal transportation networks.
   
• For instance, In February 2025, Kuehne + Nagel opened their new 23,000 m² bonded e-commerce fulfillment center at EZDubai, which is equipped with an additional 45,000 pallet positions. This development reinforces Kuehne + Nagel's commitment to large scale technological facilities for e-commerce and cross-border logistics in the UAE. This initiative further intensifies the UAE market competition.
   

Turkey third-party logistics market will grow tremendously with CAGR of 10.8% between 2026 and 2035.
 

• The 3PL market in Turkey is evolving quickly. E-commerce, digital delivery platforms, and cross-border logistics are the primary drivers of market growth; investors from outside Turkey are increasing their market presence via strategic acquisitions or investments. Market consolidation will lead to the acquisition of operational scale and last mile delivery efficiency for all logistics service providers operating in Turkey.
   
• For instance, In February 2026, Uber agreed to acquire the delivery arm of Turkey’s Getir from Emirati shareholder Mubadala for $335 million, solidifying its presence in Turkey and strengthening regional delivery networks. This move highlights how global players are leveraging acquisitions to capture a growing e-commerce and urban delivery market.
   

The Saudi Arabia third-party logistics market in Germany will experience robust growth during 2026-2035.
 

• Saudi Arabia is establishing itself as an important player for logistics within the GCC region. There are several factors that will drive this development, including the National Transport and Logistics Strategy and various government-led investments. The country intends to create an efficient supply chain for third-party logistics (3PL) by focusing on collaboration with the private sector, expanding existing port capacity, increasing the number of roadways, and providing integrated transportation solutions.
   
• For example, on February 2026, the Minister of Transport, Saleh Al-Jasser, spoke about the importance of collaborating with the private-sector market during the fourth PIF Private Sector Forum. At the time of his speech, the minister mentioned that total levels of investment in logistics had now reached over SAR 250 billion (USD66.6 billion), of which SAR25 billion was from privatization projects. This indicates the magnitude of investment being made in the logistics sector and supports the vital role that public-private partnerships play in developing Saudi Arabia's logistics capabilities.
   

The Oman will experience robust growth of 5.2% between 2026 and 2035.
 

• Oman's 3PL market is taking advantage of the connectivity and multimodal logistics solutions being created through regional integration to link the country through its ports, railways, and roadways to the increased amount of cross-border trade flow occurring within the GCC. This is accompanied by a focus on improving the cargo handling process, the customs clearance process, and the last-mile delivery process, with special consideration being given to the industrial and heavy freight trade sectors.
   
• For example, in October 2025, Hafeet Railway Company and Asyad Logistics announced their partnership to use all three modes of transportation (sea, land, and rail) to offer seamless service to their customers throughout the region by providing a logistics solution that includes cargo handling, customs processing, and last-mile delivery. This partnership demonstrates Oman's commitment to developing multimodal connectivity and streamlined logistics to facilitate regional trade.
   

Isreal third-party logistics market will grow tremendously with CAGR of 3.9% between 2026 and 2035.
 

• Israel's logistics sector aims to improve overland and regional freight flows by focusing on enhancing speed, improving innovation, and developing new trade routes. To this end, the logistics sector has partnered with Gulf states to create a collaborative network that improves efficiency and reduces transit times to EU and Asian markets using these innovative new trade routes.
   
• For Example, in January 2024, Trucknet Enterprise, an Israeli startup, partnered with Dubai based DP World and Puretrans FZCO to introduce a new overland route for transporting cargo from the Gulf to Israel’s Haifa port. This route cuts the time needed for transporting goods between the Gulf and Israel by up to 80% compared to the traditional maritime routes. This initiative demonstrates the commitment of the Israeli government to leverage innovation and strengthen its logistics network through regional partnerships.
   

Middle East Third-Party Logistics Market Share

The top 7 companies in the market are Agility Logistics, DHL, CEVA Logistics, Kuehne + Nagel, DB Schenker, Aramex, and Gulf Agency Company. These companies hold around 15% of the market share in 2025.
 

• Agility Logistics Limited is the most prominent 3PL in the region and is present in all the GCC and Levant countries. Agility Logistics operates a network of strategically located warehouses, distribution centres, and other industrial areas, including the mega project Agility Logistics Parks in Kuwait, to offer customers a variety of logistics solutions, such as contract logistics, freight forwarding, and project logistics.
   
• DHL is also a large global integrator that operates a substantial 3PL operation in the Middle East. It provides customers with air, ocean, and ground freight services, contract logistics services, and e-commerce fulfilment services. DHL’s regional presence is driven by its technology-based operation and a robust geographic network of regional hubs.
   
• CEVA Logistics provides integrated contract logistics services in the Middle East, as well as offering transportation management services that are tailored to meet each client’s requirements. CEVA Logistics works with many different types of clients across a variety of industries, including automotive, aerospace, industrial and consumer goods. CEVA has a close relationship with CMA CGM, which is a global ocean freight company that provides CEVA Logistics with the ability to offer a complete end-to-end supply chain solution to its customers.
   
• Kuehne + Nagel is one of the largest freight forwarding and logistics companies in the world, and it has operations located throughout the Middle East, with a particularly strong presence in the Kingdom of Saudi Arabia, United Arab Emirates and the Kingdom of Bahrain. Kuehne + Nagel’s largest areas of expertise are in freight forwarding, multimodal transportation and specialized logistics for pharmaceuticals, chemicals and other high-value items.
   
• DB Schenker operates in all modes of transportation (contract logistics, freight forwarding and land transport) throughout the Middle East and has a strong presence in Saudi Arabia, the United Arab Emirates and Oman. The largest areas of focus for DB Schenker are industrial logistics, automotive logistics, and project logistics. DB Schenker utilizes multimodal networks in all its operations.
   
• Aramex is a prominent 3PL and express delivery company in the Middle East, with a market-leading presence throughout the Gulf Cooperation Council (GCC), Levant region, and North Africa, providing last-mile delivery and e-commerce fulfillment services, as well as providing international freight forwarding services. Aramex has invested heavily in the digital logistics space and is also implementing smart warehousing methods to enhance its service capabilities.
   
• GAC is a logistics/transportation company located in the GCC region which also operates throughout the rest of the Middle East and serves customers throughout this area. GAC provides clients with services including warehousing, freight forwarding, integrated supply chains, marine support services, and some specialized project support. GAC builds local and regional partnerships to provide quality, customized service using multimodal capabilities and expertise related to project logistics so that GAC's clients trust GAC to be their partner in logistics. 
   

Middle East Third-Party Logistics Market Companies

Major players operating in the Middle East third-party logistics industry include:

• Agility Logistics

• Aramex
• CEVA Logistics
• DB Schenker
• DHL 
• Expeditors International
• FedEx
• Gulf Agency Company
• Kuehne + Nagel
• UPS
   

• The Middle East 3PL Market continues to experience moderate fragmentation within logistics but represents an increasingly larger presence of global logistics players such as DHL, Kuehne + Nagel, CEVA, and DB Schenker. These players employ their respective global networks of offices and customers, technologically based logistics systems, and existing experience in business segments to support international and multinational customers and related industries.
   
• It is also difficult for many logistics service providers providing support to domestic clients or logistics providers that require specialized project support to compete against these global suppliers. However, companies such as Agility, Aramex, and Gulf Agency Company represent some of the largest regional logistics suppliers, have established significant operational footprints. their service areas, and operate with local flexibility or high market knowledge, which places them at an advantage to compete with multinational logistics providers in regions where they may have less operational flexibility.
   
• Competition is increasingly shaped by scale, technology adoption, and service differentiation rather than just pricing. Examples such as Kuehne + Nagel and Expeditors, who both have very large 23,000 m² logistics warehouses & fulfillment centers in Dubai South and examples of new regional port development such as those being created in Kuwait and Bahrain, show the need for these types of large investments to maintain a company's market share today.
   
• Similarly, regional consolidation and collaboration between service providers is changing the way service providers compete in the marketplace through consolidation and collaboration, service providers are expanding their service coverage area, increasing their operational efficiencies, and providing more end-to-end solutions. Examples include Agility Logistics Park in Kuwait and Mubadala's investments in healthcare logistics, which result in multi-service logistic hubs that combine both scale and specialization.
   

Middle East Third-Party Logistics Industry News

• In December 2025, DahNAY Logistics' launch of a 250,000 sq. ft. advanced 3PL warehouse in Dubai's Jebel Ali. It is an important step toward achieving regional development goals. The facility facilitates improved connectivity and allows for more intelligent logistics solutions for the efficient movement of goods between industries.
   
• In November 2025, Al Khayyat Investments (AKI) launched a new 3PL division that will support businesses in the UAE by providing end-to-end logistics services through regional hubs located in Dubai Industrial City and Dubai Investment Park. The 3PL division provides warehousing, fulfillment, and distribution services for retail, healthcare, and FMCG sectors.
   
• In June 2025, NEOM is installed its first automated remote-controlled cranes at Terminal 1 Mohammed Bin Rashid Port which is a world-class logistics hub with high throughput and operational efficiency. This will support triple volume of business than currently exists in Saudi Arabia.
   
• In April 2025, CEVA Logistics has expanded its coverage corridor from Europe to GCC trade flows by acquiring Turkish logistics company Borusan Tedarik for USD440 million. This acquisition broadens CEVA's capabilities in third party logistics, freight forwarding, and cross-border services throughout the Middle East. The acquisition demonstrates ongoing consolidation trends within the Middle East region.
   

The third-party logistics market research report includes in-depth coverage of the industry with estimates & revenue ($Bn) from 2022 to 2035, for the following segments:

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Market, By Solution

• Dedicated contract carriage (DCC)
• Dedicated transportation management (DTM)
• International transportation management (ITM)
• Warehousing & distribution
• Logistics software

Market, By Mode

• Air
• Sea
• Rail & Road

Market, By Application

• Food & beverages
• Healthcare
• Retail
• Automotive
• Manufacturing
• E-commerce & Logistics
• Chemicals & Petrochemicals
• Pharmaceuticals
• Others
   

The above information is provided for the following countries:

• UAE
• Turkey
• Saudi Arabia
• Oman
• Israel
• Qatar
• Kuwait
• Bahrain
• Cyprus
• Rest of Middle East