An Analysis of Third-Party Logistics Market in the United Arab Emirates

Abstract

The Arab Region is an emerging market in the logistics sector. The UAE's logistics industry is expanding its wings as new entrepreneurs are entering the field, contributing new technology-based solutions and services. The blending of conventional logistics players and startups can be seen in the UAE. The challenge in the logistics market is how the existing companies face the positive competition from newcomers which are well versed in using new trends such as artificial intelligence, and the business is transparent by the Internet growth whereas traditional logistics company uses networking. The revolution of the Internet has supported the logistic companies to assemble the buyers and sellers in a single platform with better process giving simple solution unlike the old lengthy method of finding vehicles, fleet and tracking delivery points. Due to rapid expeditious, enlarging trade volume, revival of the worldwide economy, extraordinary development of construction and large-scale projects, development of transportation infrastructure and geographical location of the UAE which is an added advantage connecting the trading pathways of the West, Europe, Africa and Asia, have made the UAE as an international transit hub. Due to the improvement of growth of business dynamics all over the world, outsourcing is a huge market in the United Arab Emirates. Previously various studies were undertaken to find the third-party logistics status in different countries. To the author’s understanding, there was no survey conducted before in the United Arab Emirates from provider perspective and based on the capital city of Abu Dhabi. The aim of this research is to conduct a survey in order to examine the 3PL status in different areas. This paper reveals the maximum percentages of 3PL customers are satisfied with their present 3PL service provider and it has led the positive impact on the customer gratification and reduction of the logistics cost. As a result, the 3PL services are growing fast in Abu Dhabi.