Bahrain Logistics and Warehousing Market Outlook to 2029

The report titled “Bahrain Logistics and Warehousing Market Outlook to 2029 – By Mode of Transport, By End Users (Retail, E-commerce, FMCG, Healthcare, Automotive), By Service Mix (Freight Forwarding, Warehousing, and Value-Added Services), and By Region” provides a comprehensive analysis of the logistics and warehousing industry in Bahrain. The report covers an overview and genesis of the industry, market size in terms of revenue, segmentation across service lines and user verticals; key trends and developments, regulatory landscape, demand drivers, challenges, and competitive landscape including major logistics players, growth opportunities and bottlenecks. The report concludes with future market projections based on service lines, industry verticals, and regions, including success case studies highlighting opportunities and strategic insights.

Bahrain Logistics and Warehousing Market Overview and Size

The Bahrain logistics and warehousing market reached a valuation of BHD 1.007 billion in 2023, driven by the country’s strategic location as a GCC gateway, strong government support through infrastructure projects, and growing trade volumes. Bahrain's logistics sector benefits from its close proximity to Saudi Arabia, world-class ports such as Khalifa Bin Salman Port, and the Bahrain International Airport. The market is marked by the presence of local and international players like Agility, DHL, GAC Bahrain, Almoayed Wilhelmsen, and APM Terminals.

In 2023, the government’s focus on economic diversification under Bahrain Vision 2030 led to continued investments in the logistics sector including upgrades in Bahrain Logistics Zone (BLZ) and the new causeway project linking Bahrain with Saudi Arabia. Manama, Hidd, and Al Muharraq remain key logistics hubs due to port connectivity, customs efficiency, and industrial clustering.

Market Size for Bahrain Logistics and Warehousing Industry on the Basis of Revenue, 2018-2023

Source: TraceData Research Analysis

What Factors are Leading to the Growth of Bahrain Logistics and Warehousing Market:

• Strategic Location and Trade Access: Bahrain’s geographical positioning between major regional markets such as KSA, UAE, and Qatar enables it to function as a cost-effective regional distribution center. In 2023, over 65% of logistics throughput was related to re-export activity, affirming its role in intra-GCC trade facilitation.

• Infrastructure Development: Ongoing development of the Bahrain International Investment Park, logistics zones, and improved port facilities has led to higher logistics throughput. The expansion of Khalifa Bin Salman Port increased container handling capacity by 20% in 2023.

• Rise in E-commerce: The growth of online shopping and retail platforms has fueled demand for last-mile delivery, cold storage, and fulfillment centers. In 2023, the e-commerce sector contributed to 15% of warehousing demand, primarily driven by consumer electronics and fashion.

Which Industry Challenges Have Impacted the Growth of Bahrain Logistics and Warehousing Market

• Limited Domestic Market Size: Bahrain’s relatively small population and industrial base restrict the scale of domestic logistics demand. In 2023, over 55% of logistics volume was related to transshipment or regional distribution rather than internal consumption.

• High Operating Costs: Rising fuel prices and warehouse rental costs in urban regions such as Manama have impacted margins. Average warehouse rents increased by 11% in 2023, leading to cost pressures especially for small and mid-size logistics firms.

• Talent Shortage in Supply Chain Management: There is a notable shortage of skilled logistics professionals in Bahrain, particularly in digital supply chain, cold chain, and last-mile logistics. A recent survey noted that 42% of logistics companies face difficulty in hiring trained staff.

What are the Regulations and Initiatives which have Governed the Market

• Customs Reforms and E-Clearance: Bahrain Customs Affairs has introduced Electronic Data Interchange (EDI) and pre-arrival processing to reduce clearance times. In 2023, 65% of shipments were processed digitally, reducing average customs clearance by 22%.

• National Logistics Strategy: Bahrain launched its National Logistics Strategy in 2021, aiming to triple the sector’s contribution to GDP by 2030. The strategy prioritizes investments in air cargo facilities, cold chains, and bonded logistics parks.

• Warehouse Standardization Regulations: The government has implemented compliance protocols for fire safety, digital inventory systems, and hygiene standards in logistics parks. In 2023, 87% of Grade A warehouses were certified under new regulatory norms.

Bahrain Logistics and Warehousing Market Segmentation

• By Market Structure: Third-Party Logistics (3PL) Providers dominate Bahrain’s logistics landscape. These firms, including DHL, GAC Bahrain, and Agility, benefit from global networks, advanced infrastructure, and service integration. They offer comprehensive solutions including freight forwarding, customs clearance, warehousing, and distribution. Local Logistics Firms and SMEs also hold a substantial market share, especially in last-mile delivery and niche warehousing services. Their flexibility, lower cost base, and knowledge of local regulations allow them to serve smaller businesses efficiently.

• By Type of Service: Freight Forwarding is the largest service segment, driven by Bahrain’s strategic seaport (Khalifa Bin Salman Port) and its role as a re-export hub in the GCC. It includes sea, air, and land transport coordination. Warehousing services are growing rapidly due to increased demand from FMCG, e-commerce, and pharmaceutical sectors. Modern storage solutions including temperature-controlled and bonded warehouses are gaining traction. E-Commerce Logistics is an emerging segment with significant growth, spurred by rising online shopping, demand for faster delivery, and entry of regional e-retailers. Express Logistics is growing due to increasing B2C deliveries and international courier services. Companies like Aramex, FedEx, and UPS are key players in this segment.

• By Mode of Transport: Road Transport dominates, enabled by Bahrain’s integrated road network and its causeway connection to Saudi Arabia. Most domestic and regional cargo movements occur via road. Sea Freight is crucial for imports, exports, and re-exports, with the Khalifa Bin Salman Port serving as a key maritime logistics hub. Air Freight handles time-sensitive and high-value shipments. Bahrain International Airport offers dedicated cargo services and is expanding its cargo terminal capacity.

Competitive Landscape in Bahrain Logistics and Warehousing Market

The Bahrain logistics and warehousing market is moderately concentrated, with a combination of global logistics providers and strong regional players operating across segments. While established multinational firms dominate freight forwarding and express logistics, local companies are carving a niche in warehousing, last-mile delivery, and specialized logistics services. Digitalization, customer-centric solutions, and infrastructure investments are key themes driving competitive strategies.

Some of the recent competitor trends and key information about competitors include:

• DHL Bahrain: As one of the earliest international players in Bahrain, DHL continues to lead the express and cross-border logistics segment. In 2023, the company expanded its fleet and digital parcel tracking capabilities, handling over 4 million shipments, reflecting a 12% year-on-year increase in volume.

• Agility Logistics: Leveraging its regional strength, Agility Bahrain focuses on integrated freight, warehousing, and contract logistics. In 2023, it opened a new 28,000 sqm logistics park near Hidd Industrial Area to cater to FMCG and industrial goods.

• GAC Bahrain: Known for its strong presence in maritime and contract logistics, GAC expanded its port-side warehousing capacity in 2023 by 15%, supporting the increase in sea freight and oil & gas equipment movement.

• Aramex: Specializing in e-commerce delivery and B2C logistics, Aramex Bahrain recorded a 20% rise in last-mile deliveries in 2023, driven by rising online shopping. The company launched same-day delivery services in key urban zones.

• Almoayyed Logistics: A trusted local provider offering freight, warehousing, and cold chain services. In 2023, Almoayyed Logistics was selected by a leading pharma distributor to manage its temperature-sensitive supply chain, strengthening its foothold in healthcare logistics.

• FedEx Express: With strong capabilities in air cargo and express delivery, FedEx reported a 10% growth in international shipments in 2023. The company also introduced AI-based route optimization in Bahrain to enhance delivery speed and reduce fuel costs.

What Lies Ahead for Bahrain Logistics and Warehousing Market?

The Bahrain logistics and warehousing market is expected to witness steady growth through 2029, supported by infrastructure development, regional trade integration, and expansion of non-oil sectors. The market is projected to grow at a CAGR of approximately 6.8% during the forecast period, with increasing demand for digital logistics, smart warehousing, and specialized services across various industries.

• Integration with Saudi Arabia and GCC Trade Corridors: Bahrain’s logistics sector will continue to benefit from its strategic proximity to Saudi Arabia and its role in regional re-exports. Enhanced connectivity via the King Fahd Causeway and future projects like the GCC Railway will strengthen Bahrain’s position as a regional transit and logistics hub.

• Digital Transformation and Smart Logistics: Adoption of digital platforms for real-time tracking, inventory management, and AI-driven route optimization will accelerate. Companies are expected to invest in Warehouse Management Systems (WMS), IoT sensors, and automated handling to enhance efficiency and reduce turnaround times.

• Expansion in E-Commerce and Last-Mile Delivery: With online shopping on the rise, demand for efficient last-mile delivery solutions will grow. Logistics providers are likely to collaborate with e-commerce platforms to offer faster, more flexible delivery services in urban and remote areas.

• Development of Cold Chain and Pharma Logistics: As Bahrain positions itself as a regional center for pharmaceutical re-exports and healthcare logistics, there will be increased investments in cold chain warehousing and temperature-controlled transportation. This is especially relevant for vaccine distribution and high-value medical shipments.

Bahrain Logistics and Warehousing Market Segmentation

• By Market Structure:

• Global 3PL Providers

• Local Logistics and Transportation Companies

• Contract Logistics Operators

• Integrated Freight & Warehousing Firms

• Government and Semi-Government Logistics Bodies

• Courier and Express Delivery Services

• Independent Cold Chain Logistics Firms

• By Type of Service:

• Freight Forwarding

• Warehousing and Storage

• E-Commerce Logistics

• Express and Courier Services

• Cold Chain Logistics

• Value-Added Logistics (Labelling, Packaging, Kitting)

• By Mode of Transport:

• Road Transport

• Sea Freight

• Air Freight

• Multimodal Logistics

• By End-User Industry:

• Oil & Gas

• FMCG

• Automotive

• Pharmaceuticals & Healthcare

• Retail & E-Commerce

• Construction & Industrial Goods

• Food and Beverage

• By Region:

• Manama

• Hidd

• Muharraq

• Southern Governorate

• Northern Governorate

• Central Region (incl. Sitra, Isa Town)

Players Mentioned in the Report:

• DHL Bahrain

• Agility Logistics

• GAC Bahrain

• Aramex

• Almoayyed Logistics

• FedEx Express

• APM Terminals Bahrain

• Al Jazeera Shipping

• FreightLink Logistics

Key Target Audience:

• Logistics Service Providers (3PL, FTL, LTL, Express)

• Warehousing Operators and Infrastructure Developers

• Freight Forwarding Companies

• E-Commerce and Retail Brands

• Industrial and Manufacturing Companies

• Government Trade and Customs Authorities

• Investors and PE Firms in Logistics Infrastructure

• Market Research and Policy Advisory Firms

Time Period:

• Historical Period: 2018–2023

• Base Year: 2024

• Forecast Period: 2024–2029