GCC International Express Service - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2030)
The GCC International Express Service Market size is estimated at 613.60 million USD in 2024, and is expected to reach 978.12 million USD by 2030, growing at a CAGR of 8.08% during the forecast period (2024-2030).
The launch of several initiatives to promote cross-border trade has created a favorable environment for international express services
The governments of the GCC countries have launched several initiatives to promote cross-border trade, including simplifying customs procedures and reducing trade barriers. This has created a more favorable environment for international express services to operate in the region. For instance, the UAE and India entered into a Comprehensive Economic Partnership Agreement (CEPA). Also, international express delivery services have become more affordable due to increased competition and advancements in logistics technology.
Many online shoppers in the GCC now use cross-border e-commerce shopping. Online shoppers in the UAE made 58% of their online purchases from overseas vendors due to trust in gateway security, along with reliable and free shipping methods. Products and brand reviews on social media platforms influence e-shopping behavior. However, in Saudi Arabia, as of 2021, cross-border e-commerce accounted for 59% of all e-commerce revenue, which is expected to decrease to around 49% by 2026 as local and hybrid players gain traction.
Like many other regions worldwide, the GCC countries have witnessed a rise in chronic diseases, such as diabetes, cardiovascular diseases, and respiratory conditions. Moreover, International express delivery services for healthcare products are expected to grow in the coming years in the region due to several factors, including increasing demand for medical supplies, rising healthcare spending, and the need for faster and more efficient delivery services. In addition, the medical devices market is expected to register a CAGR of 4.80% during 2023-2027 and reach USD 11.46 billion by 2027.
Saudi Arabia's international shopping surge planned to drive 65.5% growth in express services by the end of 2023
In Saudi Arabia, cross-border e-commerce has played a crucial role in driving the demand for international courier, express, and parcel (CEP) services. For example, as of 2022, 60% of consumers engaged in cross-border online shopping, purchasing products from international businesses and retailers. Apparel, health, and beauty products emerged as popular goods among Saudi Arabian customers in cross-border transactions. China emerged as the top cross-border e-commerce partner for Saudi Arabia in 2020, accounting for 46% of the market share, followed by the United States and the United Arab Emirates, with shares of 20% and 10%, respectively. With an anticipated e-commerce user penetration rate of 65.5% by 2023, a significant portion of purchases is expected to be held by cross-border transactions, leading to substantial growth in the international express service market.
The increasing demand for delivery services primarily drives the growth of the natural cosmetics segment in Qatar. The revenue for this segment is expected to reach USD 8.58 million in 2023. Botany, a prominent international online cosmetics retailer founded in Qatar, specializes in offering natural cosmetics products. The company collaborates with its exclusive delivery partner, Aramex, to facilitate domestic and international deliveries of its goods.
FedEx Express UAE specializes in providing international express deliveries to more than 220 countries and territories worldwide. The company caters to goods within the weight range of 10 kg to 25 kg. FedEx utilizes its FedEx International Priority service to ensure speedy deliveries, which guarantees shipments to arrive within 2-3 days.
GCC International Express Service 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 International Express Service Industry Overview
The GCC International Express Service Market is fairly consolidated, with the top five companies occupying 79.71%. 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
The launch of several initiatives to promote cross-border trade has created a favorable environment for international express services
The governments of the GCC countries have launched several initiatives to promote cross-border trade, including simplifying customs procedures and reducing trade barriers. This has created a more favorable environment for international express services to operate in the region. For instance, the UAE and India entered into a Comprehensive Economic Partnership Agreement (CEPA). Also, international express delivery services have become more affordable due to increased competition and advancements in logistics technology.
Many online shoppers in the GCC now use cross-border e-commerce shopping. Online shoppers in the UAE made 58% of their online purchases from overseas vendors due to trust in gateway security, along with reliable and free shipping methods. Products and brand reviews on social media platforms influence e-shopping behavior. However, in Saudi Arabia, as of 2021, cross-border e-commerce accounted for 59% of all e-commerce revenue, which is expected to decrease to around 49% by 2026 as local and hybrid players gain traction.
Like many other regions worldwide, the GCC countries have witnessed a rise in chronic diseases, such as diabetes, cardiovascular diseases, and respiratory conditions. Moreover, International express delivery services for healthcare products are expected to grow in the coming years in the region due to several factors, including increasing demand for medical supplies, rising healthcare spending, and the need for faster and more efficient delivery services. In addition, the medical devices market is expected to register a CAGR of 4.80% during 2023-2027 and reach USD 11.46 billion by 2027.
Saudi Arabia's international shopping surge planned to drive 65.5% growth in express services by the end of 2023
In Saudi Arabia, cross-border e-commerce has played a crucial role in driving the demand for international courier, express, and parcel (CEP) services. For example, as of 2022, 60% of consumers engaged in cross-border online shopping, purchasing products from international businesses and retailers. Apparel, health, and beauty products emerged as popular goods among Saudi Arabian customers in cross-border transactions. China emerged as the top cross-border e-commerce partner for Saudi Arabia in 2020, accounting for 46% of the market share, followed by the United States and the United Arab Emirates, with shares of 20% and 10%, respectively. With an anticipated e-commerce user penetration rate of 65.5% by 2023, a significant portion of purchases is expected to be held by cross-border transactions, leading to substantial growth in the international express service market.
The increasing demand for delivery services primarily drives the growth of the natural cosmetics segment in Qatar. The revenue for this segment is expected to reach USD 8.58 million in 2023. Botany, a prominent international online cosmetics retailer founded in Qatar, specializes in offering natural cosmetics products. The company collaborates with its exclusive delivery partner, Aramex, to facilitate domestic and international deliveries of its goods.
FedEx Express UAE specializes in providing international express deliveries to more than 220 countries and territories worldwide. The company caters to goods within the weight range of 10 kg to 25 kg. FedEx utilizes its FedEx International Priority service to ensure speedy deliveries, which guarantees shipments to arrive within 2-3 days.
GCC International Express Service 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 International Express Service Industry Overview
The GCC International Express Service Market is fairly consolidated, with the top five companies occupying 79.71%. 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 Shipment Weight
5.1.1 Heavy Weight Shipments
5.1.2 Light Weight Shipments
5.1.3 Medium Weight Shipments
5.2 Route
5.2.1 Inter-Region
5.2.2 Intra-Region
5.3 End User Industry
5.3.1 E-Commerce
5.3.2 Financial Services (BFSI)
5.3.3 Healthcare
5.3.4 Manufacturing
5.3.5 Primary Industry
5.3.6 Wholesale and Retail Trade (Offline)
5.3.7 Others
5.4 Country
5.4.1 Qatar
5.4.2 Saudi Arabia
5.4.3 UAE
5.4.4 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 Shipment Weight
5.1.1 Heavy Weight Shipments
5.1.2 Light Weight Shipments
5.1.3 Medium Weight Shipments
5.2 Route
5.2.1 Inter-Region
5.2.2 Intra-Region
5.3 End User Industry
5.3.1 E-Commerce
5.3.2 Financial Services (BFSI)
5.3.3 Healthcare
5.3.4 Manufacturing
5.3.5 Primary Industry
5.3.6 Wholesale and Retail Trade (Offline)
5.3.7 Others
5.4 Country
5.4.1 Qatar
5.4.2 Saudi Arabia
5.4.3 UAE
5.4.4 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
