UAE’s CEP market demand strong due to e-commerce popularity

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 percent compound annual growth rate between 2020 and 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,” Mr. 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, Mr. 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,” Mr. Dash said.
Najeeb Kabeer, partner and managing director of Century Express Courier Services, said the UAE’s CEP market is ready to take the advantage of business opportunities arising in the wake of e-commerce boom in the region.
“With the upsurge in e-commerce activity in the Mena region in general and the UAE and Saudi Arabia in particular, the prospects for the courier segment are extremely positive,” Mr. Kabeer said.
Century Express Courier was set up in 2005, with its headquarters in Dubai and a branch office in Abu Dhabi. It has service partners in Nepal and Oman and the company’s international shipments are dispatched through the network of major integrators with a coverage of 195 countries worldwide.
“Freight forwarding, warehousing, CEP and e-commerce segments will lead the growth in the UAE’s logistics market during next five years,” Mr. Kabeer said.
Rodney Viegas, CEO of Abdul Muhsen Shipping LLC and So Safe Logistics LLC, said the UAE has developed state-of-the-art infrastructure for logistics industry in the region.
“The strategic position of the Emirate, its air, road, rail and shipping connectivity, excellent infrastructure development, increasing foreign investments and booming e-commerce will drive growth in the UAE’s logistics, CEP segment and warehousing market,” Mr. Viegas said.