Update on the UAE logistics market November 2025

Forecasts for world GDP growth in 2025 were revised across all major regions, bringing the global estimate to 2,72%. In parallel, air cargo markets continued to demonstrate resilience despite ongoing volatility. Global air cargo demand expanded by 4% year-on-year in the third quarter, the full-year growth is projected at 3–4%.

Tariff uncertainty particularly linked to escalating U.S. - China trade negotiations continues to influence global flows and seasonality patterns. While this volatility is expected to persist, the more optimistic macroeconomic environment provides a degree of support and suggests potential stability as 2025 comes to the end.

The UAE economy continues to demonstrate resilient growth, with GDP expansion projected to remain above the global average. This performance is supported by ongoing economic diversification and the steady development of non-oil sectors, including tourism, construction, and financial services. In line with this broader economic trajectory, the transport and logistics sector are also experiencing sustained growth.

Etihad Airways continued its strong growth trajectory throughout Q4 2025, significantly expanding its network across Africa, Asia, and the Middle East. The airline launched new routes to Medan (Indonesia) and Phnom Penh (Cambodia) on 2 and 3 October respectively, strengthening connectivity between Southeast Asia and key markets across the GCC, Europe, and Africa.

Etihad also inaugurated daily flights to Addis Ababa, coinciding with the activation of its joint venture with Ethiopian Airlines. The partnership enables coordinated schedules, expanded connectivity across the continent, and deeper collaboration in cargo operations.

Further reinforcing its regional strategy, Etihad announced the launch of three weekly flights to Kabul starting 18 December 2025. Operated by A320 aircraft, the service aims to support trade, investment flows, and regional mobility.

Etihad also reported a significant operational milestone - 300 daily passenger flights, reflecting over 20% year-on-year growth. Network expansion continues in November with new services to Tunis, Hanoi, Chiang Mai, and Hong Kong, offering new trade opportunities and strengthening Abu Dhabi’s position as an international hub and point of entry into UAE.

From a financial perspective, Etihad delivered a record nine-month profit, supported by an 8% increase in cargo revenue and an expanded fleet of 115 aircraft. As part of its long-term fleet strategy, the airline confirmed commitments for 32 additional Airbus widebody aircraft including A350F freighters in addition to 28 Boeing widebody aircrafts ordered earlier this year. Securing delivery slots from 2027 helps Etihad mitigate global long-haul aircraft shortages while ensuring flexibility across both passenger and cargo networks.

Emirates announced several network and fleet developments to support its ongoing expansion. Beginning 1 December 2025, the airline will introduce six additional weekly frequencies on the Dubai–Cairo route, which will further scale to a full extra daily flight from 1 February 2026. Operated by Boeing 777 aircraft, the new service increases both passenger capacity and cargo uplift between the UAE and Egypt, adding 300 tonnes of weekly bellyhold cargo capacity.

In China, Emirates deployed its new Airbus A350 on the Dubai–Hangzhou route, marking Hangzhou as the first mainland Chinese city to receive the airline’s latest aircraft type. Since the route’s launch, Hangzhou has strengthened its role as a strategic market for Emirates, supported by its rapid economic growth and access to surrounding commercial centers including Jinhua, Shaoxing, Ningbo, and Taizhou.

Emirates also announced a third daily service to Nairobi, commencing 1 March 2026. The new frequency with early morning departure provides an additional 280 tonnes of weekly cargo capacity, benefiting time-sensitive perishables and reinforcing the airline’s role in Kenya’s global trade flows.

Cargo operations remain a key pillar of the airline’s business:

In East and Southeast Asia, Emirates SkyCargo expanded its freighter presence by:

Emirates SkyCargo also strengthened its ground operations by upgrading its truck fleet with 40 vehicles. The upgrade enhances efficiency across the airline’s dual-airport cargo corridor between DWC and DXB. The truck fleet moves over 1,000 tonnes of cargo per day, with each vehicle traversing the 77 km bonded corridor up to six times daily.

Emirates is also expanding its aircraft fleet: at the Dubai Airshow 2025 airline placed an order for 65 Boeing 777-9 aircraft, increasing its total 777Xs commitment to 270 units, along with 10 Boeing 777 Freighters and 35 Boeing 787s.

Air Arabia continued to develop Ras Al Khaimah’s air network with the launch of new weekly flights to Yekaterinburg and Kazan, further strengthening links between the UAE and Russia. The new services aim to support tourism, bilateral trade, and Ras Al Khaimah’s growth as an emerging regional aviation hub. The carrier reaffirmed its commitment to providing affordable and reliable travel options while expanding its footprint within the Russian market.

Flydubai enhanced its global reach through seven new interline agreements, expanding connectivity via Aegean Airlines, ITA Airways, Myanmar Airways International, and four major Chinese carriers—Air China, China Eastern, Hainan Airlines, and Sichuan Airlines. These partnerships provide flydubai customers with access to more than 120 additional destinations across Europe and Asia.

Reinforcing its commitment to safety, flydubai signed the IATA Safety Leadership Charter. The airline also advanced its long-haul strategy by finalising an agreement with GE Aerospace for 60 GEnx-1B engines to power its upcoming Boeing 787-9 widebody fleet—the first widebody aircraft type in the airline’s history. The deal marks a significant step in flydubai’s transition from a narrow-body to a mixed-fleet operator.

Dnata reported strong performance in the first half of 2025–26, with airport operations revenue reaching AED 5.5 billion, a 15% year-on-year increase. Growth was supported by expanding activities across Italy, Australia, the UK, and the UAE.

Key operational metrics include:

The UAE aviation and logistics sector demonstrated strong, coordinated growth through extensive network expansions, major fleet commitments, and strategic infrastructure developments. On the ground, rail-port integration and continued development of port capacity reinforce the UAE’s positioning as a key multimodal hub.

Collectively, these developments indicate sustained regional demand, accelerated infrastructure investment, and increasing integration of air, sea, and rail networks, shaping the UAE as one of the most dynamic logistics ecosystems globally.

A key development in the UAE logistics landscape was the signing of a preliminary agreement to establish a Bonded Rail Corridor linking Khalifa Port (Abu Dhabi) with Fujairah Terminals. The initiative aims to streamline multimodal cargo flows and accelerate customs processing.

The corridor will:

Pilot operations are scheduled for Q4 2025, with future phases extending to additional rail stations.

In port infrastructure, Khalifa Port rose to 39th place in the Lloyd’s List Top 100 Ports ranking. The port continues to scale through major investments, with:

Khalifa Port remains the only Gulf port hosting terminals operated by three of the world’s five largest carriers: COSCO Shipping Ports, CMA CGM, and MSC.