Courier companies in the UAE are seeing a huge rise in demand for parcel deliveries within the country. While some experts point to the UAE’s growing traffic as a reason, others believe the booming e-commerce market is the main driver.
“We’ve noticed a big jump in local courier orders, even though we haven’t heavily promoted our local services,” said Jason Clare, partnerships director at Yalla Courier. “We are primarily an international courier, but now we’re expanding locally. To meet the growing demand, we’re even opening a drop-off kiosk in a mall.”
Other courier companies agree with this trend. Borhene Benmena, CEO of Shipa Delivery, explained, “The courier, express, and parcel (CEP) market in the UAE has been growing at about 7.5% annually since 2020. It’s one of the fastest-growing sectors globally.”
He added, “Our company’s shipment volume has more than doubled since 2020. By 2030, this sector’s market size is expected to grow at an 8% annual rate, increasing from $1.2 billion in 2024 to $1.9 billion.”
Why Demand is Rising
Experts highlight several reasons for this surge in courier use. Jason noted, “Many of our customers say they prefer delivery services because of traffic congestion. Even for a short 10-minute drive, people choose couriers to save time.”
Cost is another factor. “Sending a 5kg parcel from Abu Dhabi to Dubai now costs just Dh30—cheaper than a cup of coffee,” Jason said.
Borhene emphasized that the growth is fueled by both domestic and international deliveries. “Dubai’s role as a key business and retail hub creates strong demand for local courier services, including on-demand and same-day deliveries,” he added.
Popular Delivery Routes
Shipa Delivery has seen high demand for inter-emirate deliveries. “The Dubai-to-Abu Dhabi route is particularly busy, driven by e-commerce and business-to-business transactions,” Borhene explained. “Deliveries from Dubai to Sharjah and the northern emirates are also popular, especially for same-day and next-day services. These routes are essential for SMEs and online platforms.”
Apparel tops the list of shipped items. “Clothing is the most purchased product online in the UAE, with 58% of consumers buying it. Shoes follow at 51%, and cosmetics and body care items are at 43%,” Borhene shared. He added that demand for accessories, electronics, pharmaceuticals, and groceries is also increasing due to the need for fast and reliable delivery.
For Yalla Courier, Dubai Marina to Deira is the busiest route, which Jason attributes to heavy traffic. He also noted a trend where customers request pickups from malls. “Many customers arrange with shops in malls for us to collect and deliver their items,” Jason said. “It saves them time and the hassle of driving, parking, and shopping.”
