Courier companies in the UAE have experienced a significant surge in demand for parcel deliveries within the Emirates. While some attribute this to increased traffic congestion in the UAE, others point to the rise of e-commerce as the primary driver.
"We have observed a substantial increase in local courier orders, even though we haven't extensively marketed our local services," said Jason Clare, partnerships director at Yalla Courier. "We are primarily an international courier service, but we are now expanding our local operations and have even introduced a drop-off point at a mall kiosk to meet the growing demand."
His remarks were echoed by other courier firms. "The courier, express, and parcel (CEP) market in the UAE has been growing at an annual rate of about 7.5 percent since 2020. It's one of the fastest-growing CEP sectors globally," said Borhene Benmena, CEO of Shipa Delivery. "Our company's volumes, for instance, have doubled since 2020. Between 2024 and 2030, the market size of this sector is projected to expand at a compound annual growth rate (CAGR) of 8 percent, from $1.2 billion to $1.9 billion."
Experts cite several factors contributing to the rise in courier volumes. "Based on feedback from our customers, traffic congestion plays a significant role in this shift," said Jason. "Even for a short 10-minute drive, people are now choosing to save time by using a courier service."
Affordability is another factor. "Sending a 5kg parcel from Abu Dhabi to Dubai now costs around Dh30, which is cheaper than a cup of coffee," he noted. Borhene added that the growth rate reflects both domestic and cross-border delivery expansions, driven by e-commerce and international trade. "Dubai's status as a major business and retail hub fuels significant demand for local courier services, including on-demand and same-day deliveries," he said.
For Shipa Delivery, the most popular routes are inter-emirate. "The Dubai to Abu Dhabi route is highly active due to the movement of goods between the two largest cities, especially for e-commerce and B2B transactions," said Borhene. "Deliveries from Dubai to Sharjah and the northern emirates are essential for frequent same-day and next-day deliveries, often serving SMEs and platforms."
He also noted that clothes are the most commonly sent items. "Apparel tops the list of popular items among online shoppers in the UAE, with 58 percent of consumers purchasing it online, followed by shoes at 51 percent and cosmetics and body care at 43 percent," he said. Demand for accessories, consumer electronics, pharmaceutical products, and groceries is also increasing, driven by the need for fast and reliable delivery.
Meanwhile, for Yalla Courier, the most popular route was Dubai Marina to Deira, which Jason attributed to heavy traffic on that route. Jason also mentioned a trend of picking up items from malls. "Our customers have arrangements with shops in several malls, and our services are used to pick up and deliver these items," he said. "This saves people the hassle and time of driving, parking, and shopping in the mall."
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