Kuwait Logistics Market Outlook 20122: Ken Research Logistics Infrastructure in Kuwait | Page 2

provided by domestic and international players. Market has witnessed a modest growth rate in
past few years owing to the increase in the export and imports of the country and expanding e-
commerce industry. The logistics market has increased at a CAGR of ~ % during 2012-2017.
The market has increased from USD ~ million in 2012 to USD ~ million during 2017. Fall in oil
prices since 2015 has affected the overall economic growth and export revenue of Kuwait in the
past three years. This has affected the growth of logistics sector in recent years but as oil prices
relatively recovered during 2017, logistics sector in Kuwait has witnessed improved growth rate.
Rising industrial activities, increasing retail and manufacturing output have also driven the
demand of logistics services in the country. Freight forwarding is the major contributor in the
revenues of the industry contributing the percentage share of ~% in 2017, followed by
warehousing (~ %) and value added services (~ %) during 2017.
Kuwait Freight Forwarding Market
The market has increased from USD ~ million during 2012 to USD ~ million during 2017 at a
CAGR of ~% during 2012-2017. Expanding industrial activities, rising demand of online
shopping and improving trade policies have driven the demand of freight forwarding industry in
the country. Normal delivery has contributed a share of ~% (USD ~ Billion) in terms of revenues
of the overall industry during 2017. Majority of the freight movement during this period has been
undertaken through the Asia, North America and European Union flow corridor which accounted
for a share of ~%, ~% and ~% respectively. Major players in Kuwait Freight Forwarding market
are Global Logistics Group, Ability Trading & Logistics, Absolute Logistics and others.
Kuwait Warehousing Market
Kuwait warehousing market has increased from USD ~ million in 2012 to USD ~ million in
2017, growing at a CAGR of ~% during the period. The country is experiencing a major rise in
the demand for warehousing services. Industrial retail has been the leading segment in the
warehousing industry contributing ~% (USD ~ million) of the market share in terms of revenues
in 2017. The expanding e-tail companies in the country have also triggered the growth of the
warehousing industry in the country. The growth in the market is also driven by increased
demand for outsourcing of warehouse services. Vendors in the market provide multiple value-
added services to customers, including packaging and kitting, inventory management and others
which is difficult to maintain during in-house warehouse operations. This has accelerated the
demand of warehousing on lease and rent basis. Major players in Kuwait warehousing market
include Mubarrad Transport Company, AGTUS, Move One Relocation and Compass Ocean
Logistics.
Kuwait Third Party Logistics Market
Third party logistics has witnessed a robust growth in the past few years in Kuwait. The market
is growing at a CAGR of ~% during 2012-2017, increasing from USD ~ million during 2012 to
USD ~ million during 2017. Third-party logistics (3PL) outsourcing is rapidly gaining
prominence as more corporations across the world are unable to manage their complex supply
chains and hence are outsourcing logistics activities to the 3PL service providers. By outsourcing
logistics activities to the 3PL service providers, corporations are able to solely concentrate on
their core business operations resulting in cost-efficiency and improved delivery performance
and customer satisfaction. The dominating companies in the segment are Mubarrad Transport
Company, Trade Links, White Stores Company and others.