• From transit to transformation: Gulf hubs such as Abu Dhabi, Dubai, and Riyadh are evolving from traditional transfer points into fully integrated, multimodal logistics ecosystems aligned with national diversification strategies.
• Strategic resilience amid global volatility: Geopolitical disruptions and US trade tariffs have rerouted Asia-origin cargo flows, turning the Middle East into a stable and efficient bridge between the Global South and Western markets.
• Policy coherence as a growth enabler: Unified customs digitalisation, free trade zones, and logistics-oriented economic policies have sharply reduced clearance times and enhanced regional competitiveness in high-value cargo segments.
• Sustainability and digitalisation as differentiators: Investment in SAF, electrified ground operations, AI-based optimisation, and human capital development is positioning the Gulf as a global model for green and tech-driven air logistics.
• Outlook for 2025 and beyond: The region’s focus is shifting from infrastructure expansion to strategic orchestration—integrating trade, technology, and sustainability into a unified model of air cargo resilience.

As the industry is set to gathers for the upcoming TIACA Air Cargo Forum 2025 in Abu Dhabi this November, the region stands at a pivotal juncture — not merely as a transit corridor between East and West, but as a policy-driven logistics powerhouse reshaping the architecture of global trade.

Amid geopolitical volatility, tariff realignments, and shifting manufacturing bases, the Arabian Peninsula has leveraged state-backed infrastructure investment, regulatory innovation, and sustainability-focused policy to strengthen its position as a resilient hub in global supply chains.

From transit hubs to trade-oriented ecosystems

The Gulf’s aviation model has long rested on the efficiencies of transhipment — connecting Asia’s manufacturing bases to Western markets. Yet, that model is rapidly evolving. Across the UAE, Saudi Arabia, and Qatar, airports are transforming into multi-modal trade ecosystems, combining airside expansion with bonded warehousing, cold-chain logistics, and digital customs integration.

Abu Dhabi, the host of this year’s TIACA forum, has become a case study in this transition. The emirate’s Kizad Logistics Park and Etihad Cargo’s pharmaceutical and perishables handling expansion reflect how national logistics strategies are aligning with broader economic diversification agendas. Similarly, Dubai’s Al Maktoum International Airport (DWC) is being reimagined as a cargo megahub integrated with Jebel Ali Port through automated freight corridors — a logistics model now studied globally for its intermodal efficiency.

Meanwhile, Riyadh Air Cargo Village — a centrepiece of Saudi Arabia’s Vision 2030 logistics pillar — aims to handle up to 4.5 million tonnes of cargo annually by the decade’s end, supported by the Saudi Global Logistics Hub Programme. According to the General Authority of Civil Aviation (GACA), Saudi Arabia’s air cargo throughput grew by 11 percent in 2024, with pharmaceuticals, machinery, and e-commerce goods leading growth.

Capacity and connectivity: A strategic realignment

The International Air Transport Association (IATA) estimates that Middle Eastern carriers now account for 14 percent of global air cargo traffic, equivalent to 9.2 million tonnes annually. Emirates SkyCargo, Qatar Airways Cargo, and Etihad Cargo collectively dominate intercontinental bellyhold and freighter capacity between Asia, Europe, and Africa — but new entrants, including Saudia Cargo, Wizz Air Abu Dhabi, and flydubai, are reshaping market dynamics with short-haul connectivity and digital efficiency.

While major hubs like Dubai and Doha remain dominant, emerging secondary gateways — such as Muscat, Dammam, and Sharjah — are diversifying the geography of Gulf logistics. These airports are attracting e-commerce, perishables, and pharma flows displaced by trade rerouting from China and Southeast Asia, where US tariffs and regional regulatory frictions have altered traditional supply paths.

This repositioning has turned the Middle East into an alternative logistics bridge between the Global South and Western markets. According to WorldACD data, Asia–Middle East air cargo volumes rose 13 percent year-on-year in 2024, far outpacing global growth of 3.5 percent. Much of this was driven by cargo diversions from trans-Pacific and East Asian corridors affected by tariff escalations and supply-chain localisation.

Policy as an enabler: Digitalisation and free zones

The region’s progress is anchored in policy coherence. Governments have prioritised end-to-end digital customs systems, AI-enabled clearance, and harmonised health and safety protocols — especially for pharmaceuticals and perishables.

For example, UAE’s Trade Single Window and Saudi Arabia’s FASAH digital platform now enable pre-clearance and inter-agency data exchange, cutting average cargo dwell time by up to 40 percent. These systems underpin bonded logistics zones such as Dubai South, Ras Al Khaimah Economic Zone, and King Abdullah Economic City, where simplified VAT regimes, flexible labour laws, and 100 percent foreign ownership policies create low-friction trade environments.

As UAE Ministry of Economy commented stated – “The Gulf is no longer positioning itself merely as a transhipment corridor. We are designing a policy environment where logistics efficiency becomes part of national competitiveness — particularly for regulated, high-value industries like pharmaceuticals and aerospace.”

Geopolitics and the re-routing dividend

The geopolitical turbulence of recent years — from the Red Sea security crisis to tariff realignments between the US, China, and India — has paradoxically boosted the Gulf’s strategic importance. As manufacturers in Asia diversify production across Vietnam, India, and Indonesia to avoid tariff exposure, the Middle East is capturing the re-routing dividend: cargo that transits via Gulf hubs to access Western markets more predictably and cost-effectively.

According to the World Bank’s Global Logistics Performance Index, the UAE and Qatar rank among the top 15 globally for logistics competence and infrastructure quality. Their ability to maintain reliability amid conflict-prone supply routes, coupled with proximity to energy markets, gives them an unmatched resilience advantage.

Furthermore, intra-GCC logistics integration, underpinned by customs harmonisation and multimodal corridors linking ports, airports, and rail, offers shippers route redundancy — a critical asset in a fragmented trade landscape.

Sustainability: The next competitive frontier

Sustainability has emerged as a defining test for Gulf carriers and airport operators. The region’s aviation decarbonisation strategies, once criticised as reactive, are now embedded within national development frameworks.

The UAE’s National Net Zero 2050 Strategy commits to reducing aviation emissions through Sustainable Aviation Fuel (SAF) production and carbon accounting systems aligned with ICAO’s CORSIA framework. Emirates and Etihad have jointly launched SAF demonstration flights, while Qatar Airways Cargo has introduced carbon-offset options for shippers through IATA’s CO₂ Connect platform.

Beyond fuels, airports are investing in electrified ground operations, solar-powered cold storage, and AI-based energy management systems. Abu Dhabi Airports Company (ADAC) reported that its cargo facilities reduced energy consumption by 17 percent in 2024, largely through digital efficiency upgrades.

However, the region’s challenge lies in scaling these measures affordably while preserving cost competitiveness — especially as the EU’s Carbon Border Adjustment Mechanism (CBAM) and ESG-linked procurement norms begin to influence trade finance and buyer preferences.

Technology and human capital: Building the future hub

Digitalisation is reshaping competitiveness. AI-based load optimisation, blockchain documentation, and real-time visibility tools are becoming standard. The GCC e-AWB adoption rate exceeded 91 percent in 2024, compared to 79 percent globally, reflecting how Gulf carriers are integrating technology as a differentiator.

But digital infrastructure must be matched by human capability. The UAE Aviation Training Strategy 2030 and Saudi Arabia’s Logistics Talent Initiative are creating specialised academies for cold-chain, e-commerce fulfilment, and digital customs training. These efforts aim to build a knowledge-based workforce capable of sustaining the region’s logistics ambitions beyond capital investment.