The IRU’s recent report, “Road freight and trade in the Gulf Co-operation Council region: Challenges and opportunities,” forecasts a 35% increase in Qatar’s road freight sector from 2023 to 2030.

In 2023, Qatar achieved the highest year-on-year growth in the GCC road freight market at 6.1%. The UAE is projected to lead growth in 2024 with an anticipated increase of 3.8%.

The GCC road freight market was valued at $22.6 billion in 2023, contributing 1.2% to the region’s GDP. Road freight accounted for 27% of the overall freight transport sector’s gross output and is expected to grow by 22% by 2030, making it the second-fastest-growing mode after air freight.

Nearly all overland freight in the GCC is transported by road, and this mode is expected to grow further due to planned infrastructure projects, increasing intra-GCC trade, and the expanding e-commerce sector across the MENA region.

“Current geopolitical conflicts are also boosting road freight demand in the GCC. The ongoing Red Sea crisis has notably impacted maritime shipping, with regional and intercontinental trade being rerouted away from the Suez Canal towards overland or intermodal options,” the report said.

The GCC currently operates more than one million trucks, with the fleet growing by 5% to 9% annually. E-commerce in the region rose by 7.6% in 2023, reaching $23.8 billion, which is driving demand for road freight services.

Despite the rapid growth in intra-GCC trade, border infrastructure is outdated, with limited and underdeveloped crossing points. The report noted that many GCC-based companies lag in digitalization, which hampers their competitiveness on the global stage.