File photo of Hamad Port
Doha, Qatar: The Qatar freight and logistics market is estimated to amount to QR32.15bn ($8.83bn) this year and is expected to amount to QR44.16bn ($12.13bn) by 2029.
According to the Mordor Intelligence report, the sector is poised for a compound annual growth rate (CAGR) of 5.44 percent in the next half a decade.
As Qatar is one of the leading liquefied nitrogen gas (LNG) suppliers worldwide, the country has backed and played a crucial role in the growth of the logistics market.
The report notes that the market’s growth can be attributed to new expansion plans due to their hosting of FIFA 2022 and expects to be driven by expanding industrial activities, evolving e-commerce and automotive sectors, upcoming infrastructure developments, and continuous investments by the government to enhance logistics infrastructure.
It also states that in 2020, the transportation and storage market had a GDP share contribution of nearly 4.1 percent, the highest from 2017-2022.
Accelerating shift in the trade sector and transportation infrastructure in the country, logistics areas project invested roughly over QR29bn ($8bn).
However, Qatar’s transportation industry attained a valuation of around QR44bn ($12bn) in 2022. It said: “The nation holds the second position in the region for its effective logistics services and ranks fifth among the GCC countries regarding port capacity.”
The contribution of close to QR36bn ($9.9bn) to Qatar’s GDP in 2022 from transportation and storage unlocks doors to diverse possibilities, including investment prospects.
“The Logistics Areas Project in the southern region of Qatar is expected to draw QR30bn ($8.17bn) in direct investments for development projects,” the report mentioned.
The project, however, is expected to be developed as a regional hub for investments and logistics services, fostering trade sector competition and actively promoting the private sector to partake in the Qatar National Vision 2030.
“The project will also offer logistics services, such as assembly, processing, open storage spaces, storage facilities, exhibitions, shops,
and commercial offices,” it
added. The Qatar Freight and Logistics Market is fragmented, with the top five companies occupying 10.95 percent.
The key players in this market are Gulf Agency Company (GAC), Gulf Warehousing Company, Milaha Group, Nakilat Agency Company (NAC) - Nakilat, and Qatar Airways Cargo, respectively.
