Abu Dhabi, one of the major logistic hub in the UAE has grown at a CAGR 11.5% during 2009-13. Due to its import and re-export trading activity, freight forwarding cost has greater influence in total logistic value. Logistics companies in Abu Dhabi have started focusing on streamlining their core business activity.

1. Abu Dhabi Logistics
On the Move
Demand for logistics in Abu Dhabi has grown at a CAGR of 11.5%
during 2009-2013. Freight forwarding segment accounted for
around 63% of the total demand in 2013.
Estimated growth of Abu Dhabi’s logistics value 2009–13E (AED Bn)
11.2
14.8 15.8 16.1 17.3
2009 2010 2011 2012 2013E
Abu Dhabi
is one of the major
logistics hub in the UAE, owing to
its strategic location, developing
infrastructure facilities and an
ecient administrative system.
63 percent
Source: Aranca Analysis
Share of freight forwarding cost in the total logistics value (2013)
Source: Aranca Analysis
Transportation has been a key contributor to the overall logistics
market owing to an increasing importance in the distribution
activity within the Emirate of Abu Dhabi.
By segment, freight forwarding has been of greater significance
for Abu Dhabi and has contributed the largest share of the
logistics market in the Emirate, mainly due to its import and
re-export trading activity
Logistics industry distribution in Abu Dhabi
Source: Aranca Analysis
Source: Aranca Analysis
Compiled by: Mayur Varandani
Outsource or In-house?
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Freight forwarding is
often an auxiliary activity
for most of these
companies, and hence,
has been a dominant
segment in the Emirate
3%
19%
63% 15%
VALS (AED 0.5 Bn)
Freight Forwarding (AED 10.9 Bn)
Transportation (AED 3.3 Bn)
Warehousing (AED 2.6 Bn)
ABU DHABI
LOGISTICS INDUSTRY
Global
Companies
Clearing Agent,
Consolidators,
Others
Domestic
Companies
Outsourcing activity is
mainly witnessed in key end
user industries such as
pharmaceuticals,
electronics, construction,
automotive and oil gas
While looking for
cost-eective ways to
reach their end markets
eciently and eectively,
companies in Abu Dhabi
have started focusing on
streamlining their core
business activities