How Logistics & Warehousing Market Is Positioned In Saudi Arabia : Ken Research

Saudi Arabia has established itself as a leading country in logistics & Warehousing Industry in GCC region. The kingdom is one of the fastest growing countries in the logistics and warehousing industry globally. Additionally, it is the primary entry point for goods in the GCC market. It borders Oman to the East and UAE to the North. Saudi Arabia also shares sea borders with Qatar and Iran. The geographic location makes the region most suitable for logistics industry. Saudi Arabia has been the foremost nation in the Middle East to focus on logistics.

The logistics & warehousing market has increased at a CAGR of ~% during 2010 to 2015. The market has increased from USD ~ billion in2010 to ~ billion in 2015. The improving road infrastructure, rise in government support in the form of incentives and subsidies, improving corporate working environment due to large availability of expatriate workforce has driven the size of the industry.

The rising demand of cold chain logistics in the country due to the increase in the consumption of meat & animal food has triggered the size of the logistics industry. The warehouses and fleet required for transportation of cold chain products are costlier than the logistics requirement for other products.

The robust growth in e-commerce sector in the country has majorly influenced the growth rate of logistics and warehousing industry. Especially, the express delivery services offered by the e-commerce giants to the customers have accelerated the market. The prominence of online shopping has increased in the country with the rise in internet penetration in the kingdom. The internet penetration has increased from ~ million people in 2010 to ~ million in 2015 among the population of Saudi Arabia.

Saudi Arabia has low performance indicator as compared to other GCC countries.

How Freight Forwarding Market Of India Is Performing?

Freight forwarding industry has observed a tremendous growth rate in past few years. Expanding FMCG sector, retail, and food & e-commerce industry in the kingdom has attributed to the phenomenal growth in freight forwarding industry in 2010-2015. In the kingdom, the impressive performance of the industries and their strong expansion plans despite the global economic downturn, have opened up several prospects for logistics outsourcing.

Freight forwarding market of the country has dominated the overall market of Saudi Arabia logistics & warehousing services with the percentage share of ~ % in terms of revenues in 2015.

The market has increased from USD ~ Billion in 2010 to USD~ billion in 2015, growing at a CAGR of ~% during the period.

What Is The Role Of Warehousing Market In Saudi Arabia Logistics & Warehousing Market?

Saudi Arabia Warehouse and logistics market has witnessed a significant development as strong demand fundamentals from the automotive, consumer and construction sectors are being actively addressed by the planned expansion of the country’s logistics capabilities, primarily under the patronage of Jeddah’s Municipality and Jeddah Chamber of Commerce. Material handling industry of the country has attracted a healthy initial response from suppliers of products and services related to logistics and warehouses. This has created the huge opportunities for the warehousing companies of the kingdom.

The market has increased from USD ~ Billion in 2010 to USD~ billion in 2015, growing at a CAGR of ~% during the period. The factors such as growth in external trade, growth across major industry segments such as automobile, pharmaceutical, fast moving consumer goods (FMCG) and the emergence of organized retail have favorably influenced the growth of warehousing industry in the kingdom.

Cold Chain Market

Saudi Arabia cold chain market is estimated at USD ~ billion during 2015 and has soared at a compound annual growth rate (CAGR) of ~% from 2010-2015. This growth was due to the increasing contribution from the fruits and vegetables production which grew at a healthy growth rate coupled with the active participation by the pharmaceutical industry which has also registered substantial growth in the kingdom.

Third Party Logistics Market

Third party logistics market has witnessed a robust growth in the past few years in Saudi Arabia. The market is growing at a CAGR of ~% during 2010-2015. Third-party logistics (3PL) outsourcing is rapidly gaining prominence as more and more corporations across the world are unable to manage their complex supply chains and hence are outsourcing logistics activities to the 3PL service providers.

Topics Covered in the Report

  • Saudi Arabia Logistics Market
  • Cold Storage Market Saudi Arabia
  • Future Saudi Arabia Value Added Services
  • Developments Saudi Arabia Logistics
  • Express Delivery Market Saudi Arabia
  • GCC Countries Logistics Market
  • MENA Logistics Industry Growth
  • International Freight Forwarding Market
  • Domestic Freight Forwarding Saudi Arabia
  • Cargo Handling Market Saudi Arabia
  • Ground Express Market
  • Ecommerce Logistics Industry Saudi Arabia
  • For more information on the market research report please refer to the below link:

Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications


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