United Arab Emirates Freight And Logistics - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2025 - 2030)

Rising investments in road, rail, and sea transportation projects boosting freight service demand in UAE

• Electric and autonomous trucks are gaining traction in the UAE's road freight sector, which is the dominant mode of transportation. In May 2023, Einride, a prominent player in electric and autonomous freight solutions, partnered with the UAE Ministry of Energy and Infrastructure (MOEI). The collaboration aims to introduce Einride's extensive range of electric and autonomous technologies, spanning over 550 km in the UAE. As part of this deal, Einride will deploy 2,000 electric trucks, 200 autonomous trucks, and establish 8 charging stations with over 500 charging points. This strategic move not only signifies a significant milestone in the road freight industry but also underscores the sector's commitment to both sustainability and cutting-edge innovations.
• In the 2022 BRIDI rankings, the UAE slipped two spots to secure the 10th position with a score of 117. Recently, the nation has launched various initiatives to bolster its global partnerships and economic standing. One such initiative is "We the UAE 2031,"which focuses on enhancing government efficiency and digital infrastructure. Kezad (UAE) is currently home to more than 26 Chinese projects, attracting a substantial investment of USD 545 million.

United Arab Emirates Freight And Logistics Market Trends

Rising transport infrastructure development leading to economic growth, supported by environmental emission control strategies

• In January 2024, Dubai's Roads and Transport Authority (RTA) signed two MoUs, one exploring the Floc Duo Rail system for efficient transportation, and another investigating a solar-powered rail bus system. These initiatives highlight Dubai's commitment to innovative transportation solutions. In July 2024, the UAE's Ministry of Energy and Infrastructure (MoEI) and Emirates Transport announced their collaboration to install and operate EV charging stations at Emirates Transport buildings. This initiative supports the UAE's goal of achieving 50% electric vehicles on the roads by 2050 and promotes green mobility.
• The UAE's Dubai Autonomous Transportation Strategy aims to generate an annual revenue of USD 5.99 billion by 2030 through various means such as reducing transportation costs, carbon emissions, and accidents. This includes reclaiming lost commuting hours and boosting individual productivity. The strategy targets a 44% reduction in transportation expenses, equating to savings of USD 245.01 million annually, and a 12% decrease in environmental pollutants, leading to savings of USD 0.40 billion. Led by Dubai's RTA, the Shindagha Corridor project aims to optimize transportation efficiency and generate an annual economic uplift of USD 4.90 billion by 2030.

Increasing fuel subsidies for low-income households, with USD 7.62 billion allocation to a social support program

• In May 2024, Super 98 petrol went up to USD 0.909, Special 95 petrol rose to USD 0.876, and E-plus 91 petrol increased to USD 0.857. These prices are determined monthly by the Ministry of Energy, based on the global oil price average and distribution companies' operating costs. In September 2024, Super 98 petrol went down to USD 0.789 a litre and Special 95 petrol declined to USD 0.756 a litre.
• As of May 2024, Abu Dhabi National Oil Company (ADNOC) has increased its crude oil production capacity from 4.65 million bpd to 4.85 million bpd, nearing its goal of reaching 5 million bpd by 2027. This is expected to curtail fuel price hikes. ADNOC, the primary producer and seller of crude oil in the UAE, has been actively investing in upstream activities to enhance capacity. This strategic move is aimed at optimizing its hydrocarbon reserves amidst rising market competition and the shift towards renewable energy sources.

United Arab Emirates Freight And Logistics Industry Overview

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support