The Saudi Arabia Courier, Express, and Parcel (CEP) Market size is estimated at 1.38 billion USD in 2025, and is expected to reach 1.88 billion USD by 2030, growing at a CAGR of 6.48% during the forecast period (2025-2030).
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The growth and development of the courier delivery market are being propelled by the expanding volume of the e-commerce sector
- In June 2024, J&T Global Express Limited unveiled its latest service, J&T SPEED, in Saudi Arabia. This initiative was designed to cater to the rising demand for swift and dependable parcel deliveries, serving both individuals and businesses in the region. Leveraging its robust logistics network and expertise, J&T SPEED boasted an impressive average delivery time of just 58 hours. To illustrate, packages dispatched from Riyadh to Jeddah could arrive in 20 hours, while intra-city deliveries were wrapped up in just 14 hours. Furthermore, during its testing phase, J&T SPEED recorded a significant 30% surge in order volume in key cities like Riyadh and Jeddah.
- E-commerce has been a dominant catalyst for both domestic and international CEP market expansions. In 2023, jarir.com emerged as the leading player in Saudi Arabia's e-commerce landscape, boasting a revenue of USD 452.8 million. In 2022, extra.com took the lead with a store revenue of USD 278.3 million, closely followed by amazon.sa and nahdionline.com, with revenues of USD 242.0 million and USD 211.6 million, respectively. With projections indicating e-commerce user penetration to reach 73% by 2027, the Saudi Arabian CEP market is poised for significant growth.
Saudi Arabia Courier, Express, and Parcel (CEP) Market Trends
Saudi Arabia invested around USD 133 billion to boost the transport infrastructure of the economy
- As of February 2024, the Makkah region in Saudi Arabia has initiated 20 road projects valued at USD 373 million to enhance connectivity and travel within the area. These projects cover 385 km of roadways and include a 24 km direct route linking Jeddah to Makkah and the doubling of the 90 km Allaith-Makkah Road. Expansion of the Bisha-Raniyah-Al-Khurma Road is also planned. The road projects signify a substantial infrastructure investment focused on boosting connectivity and enriching transportation for both residents and visitors.
- In 2024, Saudi Arabia actively started working toward cementing its position in the aviation sector, which is in line with its ambitious Vision 2030. This vision aims to attract 120 million annual visitors by 2030 while simultaneously diversifying the economy away from oil dependence. To support this, the government has allocated USD 30.11 billion for investments in the aviation ecosystem. These investments will focus on upgrading domestic airports, bolstering local airlines, and enhancing supporting infrastructure.
Rising fuel prices due to Saudi Aramco price hikes, supported by government-led domestic fuel price reforms
- Saudi Aramco announced that starting from January 1, 2024, the retail price of diesel would surge by 53% to USD 0.3067 per liter. This marked the third increase since 2016. Also, prices for natural gas and other fuels saw an increase in 2024. These price hikes were part of the Saudi government's reforms aimed at restructuring domestic fuel prices. In November 2024, Saudi Arabia indicated plans to reduce prices for the majority of crude grades sold to Asia, starting December 2024, in response to the declining trend of the Middle East benchmark, Dubai.
- Saudi Aramco plans to cut its oil production capacity by 1.2 million barrels per day (bpd) in 2024, reflecting shifting global energy trends. For decades, Saudi Arabia has held the world's significant spare oil capacity, offering a buffer for global supplies in case of major disruptions. Despite being the largest oil exporter, the kingdom currently pumps around 9 million bpd, well below its 12 million bpd capacity due to production cuts agreed upon with OPEC and allies in 2023. OPEC anticipates a demand growth of 1.3 million bpd by the end of 2025.
Saudi Arabia Courier, Express, and Parcel (CEP) Industry Overview
The Saudi Arabia Courier, Express, and Parcel (CEP) Market is moderately consolidated, with the major five players in this market being Aramex, DHL Group, FedEx, Saudi Post- SPL (including Naqel Express) and SMSA Express Transportation Company Ltd. (sorted alphabetically).Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
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Table of Contents
1 EXECUTIVE SUMMARY & KEY FINDINGS2 REPORT OFFERS7 KEY STRATEGIC QUESTIONS FOR CEP CEOS
3 INTRODUCTION
4 KEY INDUSTRY TRENDS
5 MARKET SEGMENTATION (includes Market Value in USD, Forecasts up to 2030 and analysis of growth prospects)
6 COMPETITIVE LANDSCAPE
8 APPENDIX
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Abdul Latif Jameel IPR Company Limited
- Ali Zaid Al Quraishi & Brothers Company (AZAQ)
- Aramex
- AyMakan
- DHL Group
- Esnad Express
- FedEx
- Flow Progressive Logistics
- Kadi Group Holding (including Zajil Express)
- Move One
- Saudi Post- SPL (including Naqel Express)
- SMSA Express Transportation Company Ltd.
- Uber Technologies Inc.
- United Parcel Service of America, Inc. (UPS)
Methodology
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