Industry experts predict strong growth for the UAE’s Courier, Express, and Parcel (CEP) market following the surge in e-commerce and shifting consumer behavior during the COVID-19 pandemic.
According to the latest research by Mordor Intelligence, the UAE CEP market is expected to achieve a 7.5% compound annual growth rate (CAGR) between 2020 and 2025.
The increasing popularity of online shopping in the region, combined with expanding international trade, is expected to drive this momentum over the next five years.
Shailesh Dash, Chairman of Gulf Pinnacle Logistics (GPL), noted that the CEP sector has emerged as a vital and rapidly growing segment in the wake of the coronavirus outbreak.
“The CEP market in the UAE is expanding steadily, and the surge in e-commerce during the COVID-19 era has further strengthened its growth potential. The market was valued at $4.5 billion last year and continues to gain traction,” Dash said.
Referring to a recent report by Technavio, Dash added that the global CEP market is projected to grow at a CAGR of 5% between 2019 and 2023, reaching $90.63 billion, and the Gulf CEP market is expected to follow a similar growth trend.
“The UAE and Gulf consumers face challenges with parcel delivery and cost-efficient courier solutions. Rising e-commerce volumes create pressure on existing systems but also open new business opportunities,” Dash explained.
Najeeb Kabeer, Partner and Managing Director of Pack and Track Delivery Service LLC, highlighted the potential for domestic and regional courier providers:
“With the e-commerce boom across the MENA region, particularly in the UAE and Saudi Arabia, the outlook for the courier segment is extremely positive. Domestic CEP services are well-positioned to leverage these emerging opportunities.”
He added that freight forwarding, warehousing, CEP, and e-commerce logistics will continue to be the key drivers of growth in the UAE’s logistics sector over the next five years.
Rodney Viegas, CEO of Abdul Muhsen Shipping and So Safe Logistics, also emphasized the strategic advantages of the UAE:
“The Emirates’ central location, world-class air, road, rail, and sea connectivity, robust infrastructure, and growing foreign investment, coupled with the e-commerce boom, will drive sustained growth in the CEP, warehousing, and broader logistics sectors.”
With these trends, Pack and Track Delivery Service LLC is prepared to expand its operations and meet the increasing demand for reliable domestic and regional courier services.
