Middle East's Global Logistics Hub - What are the Key Drivers?
We all have a fair to good idea of how strong the Middle East's economy is. Not only do the countries there have a proper progressive plan to advance the cold chain and logistics industry in the Middle East but also presents a very promising market for global leaders to enter the market.
When we speak of the Middle East, we instantaneously think about deserted land, oil and natural gas economy, high-rise buildings and tech-advanced infrastructure, don't we? But in recent years, the countries there have made a shift and started diversifying their investments in sectors including sustainability, technology, trade and many more. Which collectively requires a good logistics infrastructure.
Today let's find out what the key drivers are promoting the Middle East logistics sector.
1- The Middle East's Location is a Very Strategic One - The region connects Africa, Europe and Asia standing as a cross-road between them facilitating easy movement of goods in all three continents and vice versa.
Ports in the Middle East
The region has a very good number of ports that help for goods to move from one place to another.
The top free ports in the Middle East are as follows,
Jabel Ali Free Port (JAFZA) - It is a free zone located in the western end of Dubai, UAE and is the "world-leading." It houses some 9000 companies from 100+ countries and was founded in 1985.
Recently, Jafza, announced its investment in US$25 million in Phase 2 of its Logistics Park, adding 360,000 sq. ft. of Grade-A facilities to meet growing demand. This expansion supports the UAE's US$55 billion logistics sector goal and includes modern offices, temperature-controlled warehouses, and enhanced infrastructure. With Phase 1 fully leased before completion, COO Abdulla Al Hashmi highlights strong market demand. Designed for sustainability, the park leverages Jebel Ali Port's connectivity to offer advanced storage, freight forwarding, and value-added logistics solutions.
JAFZA is important due to its access to global markets and comprehensive facilities—all thanks to its location.
Hamad Port - Located in Qatar, this port offers a world-class commercial port in the country, which is also one of the largest "greenfield port" development projects in the country.
Port of NEOM - This is a port located in Saudi, Arabia also known as Duba Port. Under the project NEOM, the port requires no introduction that it is one of the busiest, technologically advanced and sustainable ports in the world connecting Africa and Asia.
2- Top Recent Infrastructural Investments - Middle Eastern countries are making top priority on strengthening their cold chain and logistics sector. We have seen top countries including Saudi, Oman, Qatar and UAE making significant investments
Saudi Arabia's $2.66B Logistics Push - In December 2024, the kingdom announced its plans to strengthen its logistics infrastructure by developing 18 new logistics zones, with total investments crossing SR10 billion ($2.66 billion). Read the news here.
● Vision 2030 Boom - Investments in ports, automation and e-commerce under KSA Vision 2030 aim to boost the sector's GDP contribution to 10% by 2030. The vision also promises to establish special zones, such as logistic, tourist, industrial and financial ones. Read the report here. Special commercial regulations to boost investment possibilities and diversify government revenues will be applied to these zones. Moreover, KSA has upgraded ports, built new railways and created special logistics zones in recent years to make shipping faster. Not only has the government built a strategic and promising market but have equipped the logistics industry with more technology like AI and robots in warehouses, and improving delivery services for online shopping. Right now, KSA is building huge new projects like NEOM's smart port, adding more logistics zones, testing electric trucks, and connecting better with other countries for trade. The goal is to make logistics a bigger part of the economy, be among the world's top shipping countries, and clear customs in under 2 hours - all while making shipping greener and smarter.
You can read about the developments read about the Vision PDF 2030
● UAE Logistics Advancements - With a very promising market of it being USD 54.5 Billion in 2024 and anticipated to rest at USD 95.2 Billion by 2033. Read the full report here.
Expansion of Cold Storage Facility via new cold storage warehouses in Abu Dhabi, Dubai etc.
Dubai Food Park is also one of the cold chain and logistics industry additions in UAE - a new supply market in the city of Dubai (UAE).
The UAE's National Food Security Strategy 2051 ensures that food is served fresh, and produced locally and cold chain and logistics infrastructure is further improved. Link
UAE as a country has shown tremendous power in global food systems. Read here.
3- Future Plans - Pan Middle East is into bringing something newer in cold chain and logistics solutions in the form of AI-driven logistics and supply chain excellence.
Read the report here.
If you have a solid cold chain and technology products and solutions to showcase and still waiting for the right region to expand - well we must assume that by now, you know that it is none other than the MIDDLE EAST.
Register for the region's one of most awaited cold chain and logistics expo - the 2nd World Cold Chain Expo 2025 happening in Festival Arena, Dubai on 10th & 11th September.