Courier companies in the UAE have witnessed a sharp increase in demand for parcel deliveries within the Emirates. While some attribute it to increased traffic in the UAE, others say the rise of e-commerce is the main reason.
"We have seen a big surge in courier orders locally even though we haven't marketed our local services widely,” said Jason Clare, partnerships director at Yalla Courier. “We are an international courier service, but now we are expanding locally and are even adding a drop-off location at a kiosk in a mall to keep up with the demand."
His comments were supported by other courier companies as well. “The courier, express, and parcel (CEP) market in the UAE has been expanding at an annual rate of approximately 7.5 per cent since 2020. It's one of the fastest growing CEP sectors in the world,” said Borhene Benmena, CEO of Shipa Delivery.
“Our company's volumes, for example, have increased by more than 100 per cent since 2020. Between 2024 and 2030, the market size of this sector is expected to grow at a CAGR of 8 per cent, from $1.2 billion to reach $1.9 billion.”
Reason for increase in demand
According to the experts, several reasons were cited that contributed to the increase in courier volumes. “According to the feedback we have received from our customers, many say that traffic congestion impacts this behaviour,” said Jason. “Even if the point of delivery is a short 10-minute drive, people are now opting to save time and use a courier delivery service.”
Jason Clare. Photos by
He said affordability was also a factor. “Now, sending a 5kg parcel from Abu Dhabi to Dubai costs only around Dh30, which is cheaper than a cup of coffee,” he said.
Borhene added that the growth rate reflects both domestic and cross-border delivery expansions, with strong contributions from e-commerce and international trade. "Dubai's status as a major business and retail centre drives significant demand for local courier services, including on-demand and same-day deliveries,” he said.
Borhene Benmena. Photos by
Most popular routes
For Shipa Delivery, the most popular routes for deliveries are inter-emirate ones. “The Dubai to Abu Dhabi route sees high courier activity due to the movement of goods between the two largest cities, especially for e-commerce and business-to-business transactions,” said Borhene. “Deliveries from Dubai to Sharjah and northern emirates is a route that is essential for frequent same-day and next-day deliveries, often catering to SMEs and platforms.”
He added that the most commonly sent items were clothes. “Apparel tops the list of popular items among online shoppers in the UAE, with 58 per cent of consumers purchasing it online, followed by shoes at 51 per cent and cosmetics and body care at 43 per cent,” he said. Demand for accessories, consumer electronics, pharmaceutical products and groceries are also continuing to rise, driven by the need for fast and reliable delivery, he pointed out.
Meanwhile, for Yalla Courier, the most popular route was Dubai Marina to Deira, a fact that Jason attributed to the heavy traffic on the route. Jason said that the company had also noticed a trend of picking up items from malls. “Our customers have some sort of arrangement with shops in several malls and our services are sought to pick it up and deliver it,” he said. “Knowing what they want saves people a lot of hassle and time to drive, park and shop from the mall.”