UAE’s courier market to grow by 7.5%

Business Bureau, Gulf Today

The outlook for the UAE’s Courier, Express and Parcel (CEP) market is bright due to strong demand generated in the wake of the coronavirus outbreak across the globe, industry experts say.

Referring to latest research data released by Mordor Intelligence, they said CEP market in the UAE is expected to post 7.5 per cent compound annual growth rate between 2020 to 2025.  

They said growing popularity of e-commerce in the region and rising international trade will drive the growth momentum in CEP market during next five year.

Shailesh Dash, Chairman of Gulf Pinnacle Logistics (GPL), said CEP market is emerging as a strong segment after the outbreak of coronavirus.

“The CEP segment is growing steadily in the UAE, however strong growth in e-commerce and demand generated in the Covid-19 era bolstered its outlook in the region, which was valued at $4.5 billion in the region last year,” Dash said.

Established in 2014, GPL is a Dubai-based logistics and transportation company, which owns majority stakes in four assets involved in warehousing, CFS operations, student bus transportation and courier services.  Referring to the latest research report by Technavio, Dash said global CEP market will grow at a compound annual growth rate of five percent during 2019 to 2023 to reach $90.63 billion. The Gulf CEP market has no exception and it will also grow in line with the international trend.

“The consumers face challenges with parcel delivery and cost-effective courier services in the UAE and the Gulf region. It includes high cost and long delivery time as the fast-growing e-commerce exerts more pressure on the existing CEP delivery system and generates more business opportunities,” Dash said.