Middle East Emerging as Key Growth Engine for Chinese Logistics Firms' Global Expansion

Stock News
04/28

According to a research report, the Middle East's e-commerce penetration, normalized cross-border trade, and improved digital infrastructure are expected to drive long-term growth in the express delivery sector. Chinese logistics companies are poised to increase their market share by leveraging synergies with cross-border e-commerce, digital operation capabilities, cost control experience, and rapid localization adaptability. As labor efficiency improves, automated sorting becomes widespread, and economies of scale are realized, per-parcel costs are projected to decline, enhancing profitability. Supportive policies in Gulf countries, rising consumer demand, and logistics standardization are expected to further expand the industry's growth potential, positioning the Middle East as a significant growth pole for the globalization of Chinese logistics enterprises. Key companies to watch include J&T EXPRESS-W (01519) and JD LOGISTICS (02618).

The Middle East e-commerce market has evolved from a duopoly dominated early on by Amazon and Noon into a multi-player landscape. Amazon entered the region strongly in 2017 by acquiring local platform Souq, while Noon was jointly established by an Emirati entrepreneur and the Saudi sovereign fund. Together, they initially held over 50% market share. However, Chinese cross-border e-commerce platforms, often referred to as the "Four Dragons"—SHEIN, AliExpress, TEMU, and TikTok Shop—have been rapidly gaining market share. In terms of order volume, SHEIN’s average transaction value is approximately half that of Amazon, but its order scale is now approaching Amazon’s, establishing it as a core player in the Middle East e-commerce market.

Express delivery serves as essential infrastructure for the development of e-commerce in the Middle East. Between 2019 and 2024, the compound annual growth rate of express parcel volume in the region was about 23%, with the market size reaching 570 million parcels in 2024, driven primarily by e-commerce penetration and cross-border trade. The market features a three-tier competitive structure: First, local giants, including Aramex and national postal services, hold a combined share of around 40%, dominating high-end commercial parcels and large local orders through localized networks, cultural adaptation, and policy advantages. Second, Chinese companies are rising rapidly. Firms such as iMile, J&T Express, Cainiao, Zongteng, and JD LOGISTICS, leveraging the Chinese cross-border e-commerce ecosystem, have collectively captured over 40% of the market share. Their growth is fueled by cost advantages, cross-border synergies, and digital fulfillment capabilities. Third, international players, including Amazon Logistics, DHL, UPS, and FedEx, focus on cross-border express and corporate high-end segments, holding approximately 15% market share. They compete in high-margin markets using their global networks and time-definite services.

Major express delivery players in the Middle East possess distinct characteristics and competitive barriers. iMile, founded in Dubai in 2017, specializes in serving Chinese cross-border e-commerce merchants. It addresses the prevalent challenge of cash-on-delivery payments in the region by building a "1+5+X" product matrix that offers end-to-end services including cross-border direct delivery, time-sensitive express, large-item transport, returns, and customs clearance. By October 2025, iMile operated in 30 countries globally with over 2,000 employees, establishing itself as a leading third-party logistics provider in the Middle East. Aramex, founded in Jordan in 1982, is a longstanding local logistics leader. In 2025, it came under the control of Abu Dhabi sovereign fund ADQ. Its business spans international express, domestic express, freight forwarding, and logistics supply chain. The company handles approximately 350,000 to 400,000 parcels daily, with stable unit economics in its domestic business and a robust gross margin of 20% to 25%.

J&T EXPRESS entered Middle Eastern markets such as Saudi Arabia, the UAE, and Egypt in 2022. It has expanded rapidly using a low-price strategy, year-round delivery, high efficiency, and strong on-the-ground promotion. J&T EXPRESS focuses on cross-border e-commerce demand in the region, with key clients including TEMU, SHEIN, and TikTok Shop. Per-parcel prices in Saudi Arabia, the UAE, and Egypt are significantly higher than in Southeast Asia and China, contributing to stronger profit resilience. JD LOGISTICS has established Dubai as its hub, building an integrated supply chain network covering the six Gulf Cooperation Council countries, Egypt, and Turkey. Its operations are driven by four pillars: smart warehouse clusters, local express delivery, cross-border trunk lines, and technical services. The company has set up nine major warehouses in the Middle East and, through its self-operated JoyExpress service in Saudi Arabia, has launched a "211 Time-Definite Delivery" service.

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