With increasing populations, new and expanding cities, and greater infrastructure, there is an increasing need for more goods to be transported from point A to point B within the GCC and out of it.
Even young companies in the transportation, delivery and logistics sectors are finding themselves quite busy tackling the issues such as package delivery for SMEs (RW Logistics Solutions in Egypt), tracking fleets (Load Me in UAE), and even making addresses easier to find (Fetchr in UAE).
Throughout the GCC and MENA though, it is actually Saudi Arabia that is seeing the most action in the logistics and transportation industry.
A recent white paper from research consultancy Solidiance says the biggest portion of the $47 billion GCC logistics market was Saudi Arabia, which took a $19 billion share of that.
Solidiance’s report suggests that Saudi Arabia could soon outshine the UAE as the GCC’s main trading hub. They argue that the growth will come from the fact that in UAE 25 percent of the market is spent on warehousing, whereas in Saudi Arabia it’s only 15 percent.
Their research found that with high trade volumes and a number of projects in the pipeline to improve the freight infrastructure, opportunities will follow in the kingdom’s logistics industry. Also cargo volumes look to triple from 300 million tonnes in 2005 to 900 million tons by 2020.
Trade between developed and emerging economies is expected to grow by $4 trillion by 2030 globally, according to global consultancy firm PwC. Saudi Arabia and the UAE’s trade and trade routes are forecast to grow as a result.
This infographic highlights some of the key findings of Solidance’s New opportunity of eternal bottleneck? Saudi Arabia’s emerging role as a leading GCC logistics market report.
Feature image via Pexels.com