GCC logistics sector set to shine amid e-commerce growth
The logistics industry is set for a significant transformation in 2025, driven by key global shifts in digital commerce, advancements in last-mile delivery solutions, and a growing emphasis on sustainability. With global trade projected to grow by 3 per cent in 2025 , logistics remains a critical enabler of international commerce.
E-commerce continues to accelerate, especially in the Gulf Cooperation Council (GCC), where the sector is expected to grow from $39 billion in 2023 to $50 billion in 2025 . 'This surge, fueled by a tech-savvy population and increasing smartphone adoption, is reshaping customer expectations for faster delivery, seamless returns, and greater convenience,' Kami Viswanathan, President of FedEx Middle East, Indian Sub-continent and Africa, told Khaleej Times in an interview.
To enhance the delivery experience, FedEx has integrated WhatsApp notifications into its FedEx® Delivery Manager e-commerce solution. 'Additionally, with more consumers shopping online, our Picture Proof of Delivery feature enhances transparency by confirming that their package has been delivered to their doorstep, especially when they are not home to receive it,' she added.
The Middle East is home to some of the fastest-growing economies globally, with the UAE serving as a vital logistics hub connecting East and West. The logistics sector is a key driver of economic diversification and facilitating cross-border trade, supporting national initiatives like the UAE's Operation 300 billion, which aims to increase the industrial sector's GDP contribution from Dh133 billion ($36 billion) to Dh300 billion ($82 billion) by 2031 .
'FedEx actively supports Dubai's D33 economic agenda, which is to double the size of the Emirate's economy by 2033 . A key milestone is our long-term investment of approximately Dh1.3 billion ($350 million) through infrastructure and technological advancements in our state-of-the-art Middle East, Indian Subcontinent and Africa hub at Dubai World Central (DWC) Airport. Today, the facility serves as the main regional hub, with 69 weekly FedEx flights connecting the UAE directly with major markets, including the US, Belgium, France, India, Hong Kong, Italy, South Africa, Kenya, China, and Singapore. By enhancing efficiency and accelerating shipment processing through this hub, FedEx plays a vital role in seamless global trade facilitation,' Viswanathan said.
As part of its global workforce development initiative, FedEx has invested $100 million in the world's first FedEx Advanced Capability Community (ACC) in the Middle East, Indian Subcontinent and Africa region. 'In addition to boosting employment opportunities, it also contributes to the development of new capabilities and meeting the technological requirements of FedEx operations worldwide. Additionally, we also empower small and medium-sized enterprises (SMEs), with 90 per cent of our global supply contracts awarded to small businesses. Through these efforts, FedEx supports approximately 400,000 jobs worldwide, contributing to job creation and economic resilience,' Viswanathan said.
Small and medium enterprises (SMEs) are the backbone of the UAE's economy, contributing over 63.5 per cent to the country's non-oil GDP . 'As trade evolves, SMEs need more than just logistics – they require strategic support to scale internationally. At FedEx, we act as trusted advisors, connecting SMEs to a world of possibilities through our global network, tailored services, and digital solutions,' Viswanathan said.
In addition, FedEx is actively engaging SMEs across the region through its cluster programme, that helps SMEs across various sectors navigate international trade and expand their reach. Recent clusters included e-commerce businesses in the Sharjah Publishing City (SPC) Free Zone and SMEs based in Ras Al Khaimah Economic Zone (RAKEZ), Jebel Ali Industrial Zone, and Dubai Investments Park (DIP).
FedEx is also investing significantly in automation, building one of the world's smartest networks in the industry. The FedEx hub at DWC features automated sort systems, handling up to 9,000 packages per hour, enhancing accuracy and speed in package processing and distribution.
On the sustainability front, customers can access estimates of their carbon footprint on the FedEx® Sustainability Insights tool. 'Additionally, the EVs incorporated in our UAE fleet have zero-tailpipe emissions and, on a full charge, have a delivery capacity of 280 kilometers operational range. By integrating logistics with AI and digital intelligence, we are building smarter, more resilient supply chains,' Viswanathan said.
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