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The UAE, Qatar and the Kingdom of Saudi Arabia will remain key growth catalysts for the contract logistics market in the Middle East, which is expected to reach a value of around $3.7bn in 2015, increasing from US$3bn in 2011, according to a new study by Transport Intelligence. The region's contract logistics services market is expected to sustain a 6.9% compound annual growth rate (CAGR) from 2011 to 2015, Barloworld Logistics, a provider of logistics and supply chain management solutions, in a press release, quoted the study as saying.
This growth is compounded by the growing awareness of the strategic benefits of outsourced logistics solutions such as substantial cost savings, decreased cycle times, improved product and service quality, and enhanced customer satisfaction, which are acting as multipliers to the expected economic growth, it said. The company predicted that market conditions will continue to improve in light of the projected positive growth rates for the region. GCC countries, the company said, have posted the biggest gains in the Middle East contract logistics market, driven by high levels of investment, consumer spending and fast economic growth. Qatar's contract logistics market achieved the strongest growth rate in the Middle East in 2011, expanding by 23.1% to reach $118m.
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