GCC Courier, Express, and Parcel (CEP) - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2030)
The GCC Courier, Express, and Parcel (CEP) Market size is estimated at 3.60 billion USD in 2024, and is expected to reach 5.52 billion USD by 2030, growing at a CAGR of 7.38% during the forecast period (2024-2030).
Digital and technological advancements driving CEP industry growth in the region
E-commerce has been a major driver for CEP growth in Saudi Arabia. The biggest player in the e-commerce market is extra.com, recording a revenue of USD 278.3 million in 2022. It was followed by amazon.sa and nahdionline.com, with revenues of USD 242 million and USD 211.6 million, respectively. Collectively, the top 3 stores accounted for 31.8% of the top 100 online stores' revenue in Saudi Arabia in 2022. With e-commerce user penetration projected to touch 73% by 2027, the Saudi Arabian CEP market is expected to grow significantly.
UAE began issuing flying parcel delivery vehicle licenses in 2023. Vertical takeoff and landing (eVTOL) aircraft are going to be used to deliver parcels across the country, which potentially could lead to speedy sending and receiving, specifically of small cargo, while also ensuring environmental benefits. RegLab works with the issuance of the electric aircraft license and issues a temporary license to test electric vertical takeoff in UAE. The RegLab license is also in line with legal provisions that advance the country's objective of having net zero emissions by 2050.
Qatar Post, the national postal service, delivered 779,000 postal items domestically and internationally in 2021. A digital archiving system was implemented by Qatar Post to ensure efficient and high-quality services. The company released a receipt and delivery application with facilities like requests for receipt and delivery made using the app and submission of inquiries through online chat or WhatsApp. Incoming client calls decreased by 20% as a result of this. Also, 80,000 messages were received, and 30,000 fresh addresses were gathered.
Regional market is driven by the adoption of drone deliveries, digital automated warehouses and distribution centres
The parcel volume in the region has witnessed growth driven mainly by a surge in e-commerce-led parcel shipments. Regional e-commerce has grown at a CAGR of 25% during 2017-2021. Saudi Arabia, the United Arab Emirates, Qatar, Oman, Bahrain, and Kuwait comprise the CEP market in the GCC region. Major courier players in the region comprise DHL, FedEx, Oman Post, Bahrain Post, Muscat Post, Saudi Post, Qatar Post, and Emirates Post.
In 2023, Kuwait's Ministry of Communications launched a new service to deliver express mail and parcels to homes exceptionally to the Al-Masayel Post Center. Qatar Post is a leading player that facilitates parcel services weighing up to 30 kg through its largest vehicle fleet in the country, comprising vehicles ranging from motorbikes to large trucks. Through its online shopping delivery service, Connected, Qatar Post enables overseas e-commerce purchases and delivery across industries like technology and lifestyle.
The region faces certain challenges in meeting the warehousing and fulfillment needs of the CEP market, such as a lack of modern warehousing infrastructure, especially in the smaller towns and villages, to cope with a surge in the demand generated by the market. The inefficient last-mile delivery and cash-driven economy are other challenges affecting the market's growth. However, several players have been establishing fulfillment centers in the region. For instance, in 2022, the Saudi Authority for Industrial Cities and Technology Zones signed an agreement to establish 14 digital automated warehouses. In 2023, Amazon launched its new FC, increasing its total storage capacity in the United Arab Emirates by 70%. In 2022, e-commerce retailer Noon announced its aim of launching a 252,000 sq. meter fulfillment center facility.
GCC Courier, Express, and Parcel (CEP) Market Trends
GCC's booming logistics sector, with investments worth billions in infrastructure, fuels economic growth and development
In 2022, Saudi Arabia's logistics industry was valued at USD 18 billion, making it a highly appealing emerging market in the GCC. The sector's revenue is projected to grow at a 6.7% CAGR as the government focuses on development. In 2021, around USD 15 billion was invested in Saudi Arabia's infrastructure and transportation projects. The UAE possesses advanced transportation and infrastructure, including roads, metro networks, and maritime facilities, fueling economic growth, business, and tourism.
The Logistics Areas Project in Qatar's southern region is set to attract QAR 30 billion (USD 8.17 billion) in direct investments for development, aiming to establish a regional hub for investments and logistics services. Saudi Arabia's ambitious plan involves investing USD 147 billion in transport and logistics infrastructure over eight years, aiming to make the country a major global aviation hub, with around 35% funded by the government and the rest from the private sector.
The GCC Railway appears to be reviving, which could transform trade and connectivity across the Gulf. The railway's construction improved regional connectivity significantly by reducing transportation times and costs between major GCC cities and ports, improving trade flows across the bloc, and attracting investments. In 2021, the Saudi Arabian government constructed a new rail infrastructure and invested around SAR 562.66 billion (USD 149.83 billion) in transport and logistics. Saudi Arabia's ongoing rail project is the 1,300 km Land Bridge, which will connect the country's ports on the Red Sea coast to those on the Arabian Gulf. It is expected to cost between USD 7 billion and USD 26 billion when completed in 2026.
Approximately 30% of the Middle East's natural gas reserves are held by Qatar
In 2022, diesel pump prices in the United Arab Emirates rose by 35%, with a liter costing USD 0.69. This high fluctuation in diesel prices in the United Arab Emirates is due to currency exchange rates, international crude oil prices, and demand. In Qatar, from June 2022 to May 2023, diesel and super-grade petrol prices remained stable, while premium petrol prices fluctuated between QAR 2.05 (USD 0.5) and QAR 1.90 (USD 0.51) per liter. The price increase for diesel has been matched by additional price increases at the gas pump for gasoline blends, including a new price for the well-known Super 98 gasoline, which will now cost 4.15 USD/liter, a 36% increase.
The weighted average cost of gas production across the GCC increased by one-third to two-thirds between 2015 and 2030, from USD 1.50 to USD 4.50 per thousand cubic feet in 2015 to USD 2.00-USD 7.00 per thousand cubic feet in 2030. Qatar holds 11% of the world's proven natural gas reserves and almost 30% of the Middle East's reserves. With reserves of crude oil estimated at 25.2 billion barrels in January 2023, Qatar held the 6th largest reserves in the Middle East and the 14th largest in the world.
Saudi Arabia has relied heavily on its vast oil reserves as a significant energy source and revenue source. However, the country has recognized the importance of diversifying its energy mix and incorporating renewable sources of energy. In July 2022, Saudi Arabia, the world's largest oil exporter, set a cap on local gasoline prices to help alleviate rising living costs and boost the economy. However, the government has been working to bring domestic fuel prices in line with international levels, part of reforms aimed at easing the burden of subsidies on state finances, improving energy efficiency, and cutting consumption.
GCC Courier, Express, and Parcel (CEP) Industry Overview
The GCC Courier, Express, and Parcel (CEP) Market is fragmented, with the top five companies occupying 26.95%. The major players in this market are Aramex, DHL Group, FedEx, Postaplus and United Parcel Service of America, Inc. (UPS) (sorted alphabetically).
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Digital and technological advancements driving CEP industry growth in the region
E-commerce has been a major driver for CEP growth in Saudi Arabia. The biggest player in the e-commerce market is extra.com, recording a revenue of USD 278.3 million in 2022. It was followed by amazon.sa and nahdionline.com, with revenues of USD 242 million and USD 211.6 million, respectively. Collectively, the top 3 stores accounted for 31.8% of the top 100 online stores' revenue in Saudi Arabia in 2022. With e-commerce user penetration projected to touch 73% by 2027, the Saudi Arabian CEP market is expected to grow significantly.
UAE began issuing flying parcel delivery vehicle licenses in 2023. Vertical takeoff and landing (eVTOL) aircraft are going to be used to deliver parcels across the country, which potentially could lead to speedy sending and receiving, specifically of small cargo, while also ensuring environmental benefits. RegLab works with the issuance of the electric aircraft license and issues a temporary license to test electric vertical takeoff in UAE. The RegLab license is also in line with legal provisions that advance the country's objective of having net zero emissions by 2050.
Qatar Post, the national postal service, delivered 779,000 postal items domestically and internationally in 2021. A digital archiving system was implemented by Qatar Post to ensure efficient and high-quality services. The company released a receipt and delivery application with facilities like requests for receipt and delivery made using the app and submission of inquiries through online chat or WhatsApp. Incoming client calls decreased by 20% as a result of this. Also, 80,000 messages were received, and 30,000 fresh addresses were gathered.
Regional market is driven by the adoption of drone deliveries, digital automated warehouses and distribution centres
The parcel volume in the region has witnessed growth driven mainly by a surge in e-commerce-led parcel shipments. Regional e-commerce has grown at a CAGR of 25% during 2017-2021. Saudi Arabia, the United Arab Emirates, Qatar, Oman, Bahrain, and Kuwait comprise the CEP market in the GCC region. Major courier players in the region comprise DHL, FedEx, Oman Post, Bahrain Post, Muscat Post, Saudi Post, Qatar Post, and Emirates Post.
In 2023, Kuwait's Ministry of Communications launched a new service to deliver express mail and parcels to homes exceptionally to the Al-Masayel Post Center. Qatar Post is a leading player that facilitates parcel services weighing up to 30 kg through its largest vehicle fleet in the country, comprising vehicles ranging from motorbikes to large trucks. Through its online shopping delivery service, Connected, Qatar Post enables overseas e-commerce purchases and delivery across industries like technology and lifestyle.
The region faces certain challenges in meeting the warehousing and fulfillment needs of the CEP market, such as a lack of modern warehousing infrastructure, especially in the smaller towns and villages, to cope with a surge in the demand generated by the market. The inefficient last-mile delivery and cash-driven economy are other challenges affecting the market's growth. However, several players have been establishing fulfillment centers in the region. For instance, in 2022, the Saudi Authority for Industrial Cities and Technology Zones signed an agreement to establish 14 digital automated warehouses. In 2023, Amazon launched its new FC, increasing its total storage capacity in the United Arab Emirates by 70%. In 2022, e-commerce retailer Noon announced its aim of launching a 252,000 sq. meter fulfillment center facility.
GCC Courier, Express, and Parcel (CEP) Market Trends
GCC's booming logistics sector, with investments worth billions in infrastructure, fuels economic growth and development
In 2022, Saudi Arabia's logistics industry was valued at USD 18 billion, making it a highly appealing emerging market in the GCC. The sector's revenue is projected to grow at a 6.7% CAGR as the government focuses on development. In 2021, around USD 15 billion was invested in Saudi Arabia's infrastructure and transportation projects. The UAE possesses advanced transportation and infrastructure, including roads, metro networks, and maritime facilities, fueling economic growth, business, and tourism.
The Logistics Areas Project in Qatar's southern region is set to attract QAR 30 billion (USD 8.17 billion) in direct investments for development, aiming to establish a regional hub for investments and logistics services. Saudi Arabia's ambitious plan involves investing USD 147 billion in transport and logistics infrastructure over eight years, aiming to make the country a major global aviation hub, with around 35% funded by the government and the rest from the private sector.
The GCC Railway appears to be reviving, which could transform trade and connectivity across the Gulf. The railway's construction improved regional connectivity significantly by reducing transportation times and costs between major GCC cities and ports, improving trade flows across the bloc, and attracting investments. In 2021, the Saudi Arabian government constructed a new rail infrastructure and invested around SAR 562.66 billion (USD 149.83 billion) in transport and logistics. Saudi Arabia's ongoing rail project is the 1,300 km Land Bridge, which will connect the country's ports on the Red Sea coast to those on the Arabian Gulf. It is expected to cost between USD 7 billion and USD 26 billion when completed in 2026.
Approximately 30% of the Middle East's natural gas reserves are held by Qatar
In 2022, diesel pump prices in the United Arab Emirates rose by 35%, with a liter costing USD 0.69. This high fluctuation in diesel prices in the United Arab Emirates is due to currency exchange rates, international crude oil prices, and demand. In Qatar, from June 2022 to May 2023, diesel and super-grade petrol prices remained stable, while premium petrol prices fluctuated between QAR 2.05 (USD 0.5) and QAR 1.90 (USD 0.51) per liter. The price increase for diesel has been matched by additional price increases at the gas pump for gasoline blends, including a new price for the well-known Super 98 gasoline, which will now cost 4.15 USD/liter, a 36% increase.
The weighted average cost of gas production across the GCC increased by one-third to two-thirds between 2015 and 2030, from USD 1.50 to USD 4.50 per thousand cubic feet in 2015 to USD 2.00-USD 7.00 per thousand cubic feet in 2030. Qatar holds 11% of the world's proven natural gas reserves and almost 30% of the Middle East's reserves. With reserves of crude oil estimated at 25.2 billion barrels in January 2023, Qatar held the 6th largest reserves in the Middle East and the 14th largest in the world.
Saudi Arabia has relied heavily on its vast oil reserves as a significant energy source and revenue source. However, the country has recognized the importance of diversifying its energy mix and incorporating renewable sources of energy. In July 2022, Saudi Arabia, the world's largest oil exporter, set a cap on local gasoline prices to help alleviate rising living costs and boost the economy. However, the government has been working to bring domestic fuel prices in line with international levels, part of reforms aimed at easing the burden of subsidies on state finances, improving energy efficiency, and cutting consumption.
GCC Courier, Express, and Parcel (CEP) Industry Overview
The GCC Courier, Express, and Parcel (CEP) Market is fragmented, with the top five companies occupying 26.95%. The major players in this market are Aramex, DHL Group, FedEx, Postaplus and United Parcel Service of America, Inc. (UPS) (sorted alphabetically).
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 EXECUTIVE SUMMARY & KEY FINDINGS
2 REPORT OFFERS
3 INTRODUCTION
3.1 Study Assumptions & Market Definition
3.2 Scope of the Study?
3.3 Research Methodology
4 KEY INDUSTRY TRENDS
4.1 Demographics
4.2 GDP Distribution By Economic Activity
4.3 GDP Growth By Economic Activity
4.4 Inflation
4.5 Economic Performance And Profile
4.5.1 Trends in E-Commerce Industry
4.5.2 Trends in Manufacturing Industry
4.6 Transport And Storage Sector GDP
4.7 Export Trends
4.8 Import Trends
4.9 Fuel Price
4.10 Logistics Performance
4.11 Infrastructure
4.12 Regulatory Framework
4.12.1 Qatar
4.12.2 Saudi Arabia
4.12.3 UAE
4.13 Value Chain & Distribution Channel Analysis
5 MARKET SEGMENTATION (INCLUDES MARKET VALUE IN USD, FORECASTS UP TO 2030 AND ANALYSIS OF GROWTH PROSPECTS)
5.1 Destination
5.1.1 Domestic
5.1.2 International
5.2 Speed Of Delivery
5.2.1 Express
5.2.2 Non-Express
5.3 Model
5.3.1 Business-to-Business (B2B)
5.3.2 Business-to-Consumer (B2C)
5.3.3 Consumer-to-Consumer (C2C)
5.4 Shipment Weight
5.4.1 Heavy Weight Shipments
5.4.2 Light Weight Shipments
5.4.3 Medium Weight Shipments
5.5 Mode Of Transport
5.5.1 Air
5.5.2 Road
5.5.3 Others
5.6 End User Industry
5.6.1 E-Commerce
5.6.2 Financial Services (BFSI)
5.6.3 Healthcare
5.6.4 Manufacturing
5.6.5 Primary Industry
5.6.6 Wholesale and Retail Trade (Offline)
5.6.7 Others
5.7 Country
5.7.1 Qatar
5.7.2 Saudi Arabia
5.7.3 UAE
5.7.4 Rest of GCC
6 COMPETITIVE LANDSCAPE
6.1 Key Strategic Moves
6.2 Market Share Analysis
6.3 Company Landscape
6.4 Company Profiles
6.4.1 Aramex
6.4.2 DHL Group
6.4.3 Emirates Post
6.4.4 FedEx
6.4.5 Postaplus
6.4.6 Qatar Post
6.4.7 Saudi Post-SPL (including Naqel Express)
6.4.8 SMSA Express
6.4.9 Uber Technologies Inc.
6.4.10 United Parcel Service of America, Inc. (UPS)
7 KEY STRATEGIC QUESTIONS FOR CEP CEOS
8 APPENDIX
8.1 Global Overview
8.1.1 Overview
8.1.2 Porter’s Five Forces Framework
8.1.3 Global Value Chain Analysis
8.1.4 Market Dynamics (DROs)
8.1.5 Technological Advancements
8.2 Sources & References
8.3 List of Tables & Figures
8.4 Primary Insights
8.5 Data Pack
8.6 Glossary of Terms
2 REPORT OFFERS
3 INTRODUCTION
3.1 Study Assumptions & Market Definition
3.2 Scope of the Study?
3.3 Research Methodology
4 KEY INDUSTRY TRENDS
4.1 Demographics
4.2 GDP Distribution By Economic Activity
4.3 GDP Growth By Economic Activity
4.4 Inflation
4.5 Economic Performance And Profile
4.5.1 Trends in E-Commerce Industry
4.5.2 Trends in Manufacturing Industry
4.6 Transport And Storage Sector GDP
4.7 Export Trends
4.8 Import Trends
4.9 Fuel Price
4.10 Logistics Performance
4.11 Infrastructure
4.12 Regulatory Framework
4.12.1 Qatar
4.12.2 Saudi Arabia
4.12.3 UAE
4.13 Value Chain & Distribution Channel Analysis
5 MARKET SEGMENTATION (INCLUDES MARKET VALUE IN USD, FORECASTS UP TO 2030 AND ANALYSIS OF GROWTH PROSPECTS)
5.1 Destination
5.1.1 Domestic
5.1.2 International
5.2 Speed Of Delivery
5.2.1 Express
5.2.2 Non-Express
5.3 Model
5.3.1 Business-to-Business (B2B)
5.3.2 Business-to-Consumer (B2C)
5.3.3 Consumer-to-Consumer (C2C)
5.4 Shipment Weight
5.4.1 Heavy Weight Shipments
5.4.2 Light Weight Shipments
5.4.3 Medium Weight Shipments
5.5 Mode Of Transport
5.5.1 Air
5.5.2 Road
5.5.3 Others
5.6 End User Industry
5.6.1 E-Commerce
5.6.2 Financial Services (BFSI)
5.6.3 Healthcare
5.6.4 Manufacturing
5.6.5 Primary Industry
5.6.6 Wholesale and Retail Trade (Offline)
5.6.7 Others
5.7 Country
5.7.1 Qatar
5.7.2 Saudi Arabia
5.7.3 UAE
5.7.4 Rest of GCC
6 COMPETITIVE LANDSCAPE
6.1 Key Strategic Moves
6.2 Market Share Analysis
6.3 Company Landscape
6.4 Company Profiles
6.4.1 Aramex
6.4.2 DHL Group
6.4.3 Emirates Post
6.4.4 FedEx
6.4.5 Postaplus
6.4.6 Qatar Post
6.4.7 Saudi Post-SPL (including Naqel Express)
6.4.8 SMSA Express
6.4.9 Uber Technologies Inc.
6.4.10 United Parcel Service of America, Inc. (UPS)
7 KEY STRATEGIC QUESTIONS FOR CEP CEOS
8 APPENDIX
8.1 Global Overview
8.1.1 Overview
8.1.2 Porter’s Five Forces Framework
8.1.3 Global Value Chain Analysis
8.1.4 Market Dynamics (DROs)
8.1.5 Technological Advancements
8.2 Sources & References
8.3 List of Tables & Figures
8.4 Primary Insights
8.5 Data Pack
8.6 Glossary of Terms
