Kuwait Warehousing Market Outlook to 2026F

Driven by Rise in Demand for Technologically Advanced Warehouses by Different End Users

Region:Middle East

Author(s):Nishika Chowcharia, Apoorv Nayal

Product Code:KR1173

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Published on

July 2022

Total pages

82

Table of Content

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About the Report

About the Report

The report titled “Kuwait Warehousing Market Outlook to 2026F– Driven by Rise in Demand for Technologically Advanced Warehouses by Different End Usersprovides a comprehensive analysis on the status of the warehousing market in Kuwait. The report covers various aspects including overview of transportation infrastructure, industrial landscape of Kuwait, warehousing market size and segmentations, trends and developments, issues and challenges, regulatory landscape, Value Chain Analysis, competitive scenario and emerging technologies in the industries. The report concludes with market projections for future of the industry including forecasted industry size by revenue and business activity.



Kuwait Warehousing Market Overview and Size:
Kuwait Warehousing Market is currently undersupplied with well-known players such as Agility, KGL Logistics and City Group establishing themselves as regional leaders. Warehousing firms initially gained a foothold by serving US military personnel in Kuwait, however it is diversifying away from public sector contracts and increasingly catering to businesses and households. Kuwait warehousing market has been continuously growing at a single digit CAGR (2016-2021) owing to surging logistics volume, rising imports, trend of logistics outsourcing and government efforts to enhance the logistics infrastructure. Kuwait government’s plans to invest across strategic sectors under Kuwait Development Plan (KDP) 2015-2020 has positively impacted the market.

Kuwait Warehousing Market Segmentations:

By Captive and Logistics Companies:
In Kuwait, logistics companies capture majority of the space with few companies such as Alghanim and The Sultan Center having their own captive space.

By Licensed and Non-Licensed Warehouse:
Kuwait Warehousing market is a highly regulated industry with majority of the warehouses having proper licenses and certifications issued from the concerned authority or department.

By Grade A/B/C Warehouse:
Grade A Warehouses contribute majority of the market space in the industry. As the demand for sophisticated storage and distribution facilities increases, owing to the expanding volume of e-commerce, Grade A warehouses are expected to grow at a phenomenal rate in the future.

By Commercial Models
: Real estate developers and end users opting for warehousing in Kuwait usually look for longer lease tenures and lock-ins to ensure rental yields from properties. Majority of the logistics companies prefer the leasing model or built to suit model over the rental model since discounts are offered in terms of pricing.

By Type of Warehouses:
Dry and ambient warehouses dominated the Kuwait warehousing market in 2021 due to rise in the industrial, F&B and retail sectors in the country. Cold storage warehousing has inclined over the years with the rising requirement of temperature-controlled products majorly (pharmaceuticals, sea food and frozen foods).

By End Users:
Kuwait is one of the fastest-growing markets, which is driven by a strong purchasing power vested in Infrastructural projects, the retail industry, and a strong trading and oil industry. Strong end user demand & high growth segments such as food & beverages and consumer retail are supporting the logistics spend in the industry.

By Region:
The major Industrial zones in Kuwait are located in areas such as Mina Abdullah, Sulaibiya, Shuwaikh, Ardiya Shuaiba, Subhan and Al Ahmadi. The major warehousing hubs in Kuwait are located in areas such as Mina Abdullah, Sulaibiya, Shuwaikh and Ardiya with Mina Abdullah occupying 40% of the total warehousing Space in 2021.

Comparative Landscape in Kuwait Warehousing Market:
Kuwait’s warehousing market is moderately concentrated with top 3 players accounting more than 3/4th share of the market space and companies are concentrated to Sulaibiya, Shuwaikh and Mina Abdullah regions. Companies in Kuwait have been focusing on providing data-oriented solutions and other services for operational excellence, timely customer support, thus providing customer satisfaction and retention of customers.

Kuwait Warehousing Market Outlook and Projections:
The growth of local companies within the logistics sector points to widening industry potential in the country with total warehousing space growing at a double digit CAGR (2021-2026F). Strong leasing momentum is likely to continue throughout the year; 3PL and e-commerce players are expected to drive demand for logistics space. Key factors which are expected to drive demand across the country: consolidation and expansion by existing players and entry of new players. Increasing adoption of warehouse automation technologies such as EDI, RFID, Human Centric Designs and Drones are expected to improve operational efficiency.

Key Segments Covered

By Captive and Logistics Companies
Logistics Companies
Captive Companies

By Licensed and Non-Licensed Warehouse
Licensed Warehouses
Non-Licensed Warehouses

By Grade
Grade A
Grade B and others

By Commercial Models
Built to Suit Model
Long Term Leasing Model
Rental Models by 3PL

By Warehouse Type
Dry & Ambient
Cold Storage
Open Yards
Agriculture and Other Warehouses

By End Users
Food & Beverages
Consumer Retail
Healthcare
Automotive and Industrial Equipments
Consumer E-Commerce
Others

By Consumer E-Commerce
E-commerce Delivery Stations
Dark Kitchens/Stores
Others

By Region
Mina Abdullah
Sulaibiya
Shuwaikh
Ardiya
Jahra
Others

Companies Covered
Agility Kuwait
KGL Logistics Kuwait
DHL Kuwait
City Group
Aramex
DSV
APL Logistics
TransCrate Logistics

Key Target Audience
International Domestic Freight Forwarders
Warehousing Companies
Logistics Companies
Logistics Consultants

Time Period Captured in the Report: -

Historical Period – 2
016-2021

Forecast Period –
2021-2026F

Key Topics Covered in the Report
Executive Summary
Kuwait Country and Logistics Sector Overview
Snapshot of Industrial Market Landscape in Kuwait
Major Regulations for the Warehousing and Logistics Industry in Kuwait
Emerging Technologies in Kuwait Warehousing Market
Key Trends in Kuwait Warehousing Market
Major Challenges in Kuwait Warehousing Market
Competitive Landscape in Kuwait Warehousing Market
Strengths and Weaknesses of Major Warehousing Players in Kuwait
Detailed Analysis on Kuwait Warehousing Market (Market Size, 2016-2021; Market Segmentation; Market Shares; Competition; Future Market Size, 2026F) 
Competitive Landscape in Kuwait Warehousing Market
Analyst Recommendations

Products

Products

Key Segments Covered

By Captive and Logistics Companies

Logistics Companies

Captive Companies

By Licensed and Non-Licensed Warehouse

Licensed Warehouses

Non-Licensed Warehouses

By Grade

Grade A

Grade B and others

By Commercial Models

Built to Suit Model

Long Term Leasing Model

Rental Models by 3PL

By Warehouse Type

Dry & Ambient

Cold Storage

Open Yards

Agriculture and Other Warehouses

By End Users

Food & Beverages

Consumer Retail

Healthcare

Automotive and Industrial Equipments

Consumer E-Commerce

Others

By Consumer E-Commerce

E-commerce Delivery Stations

Dark Kitchens/Stores

Others

By Region

Mina Abdullah

Sulaibiya

Shuwaikh

Ardiya

Jahra

Others

Key Target Audience

International Domestic Freight Forwarders

Warehousing Companies

Logistics Companies

Logistics Consultants

Time Period Captured in the Report: -

Historical Period – 2016-2021

Forecast Period –2021-2026F


Companies

Companies Covered

Agility Kuwait

KGL Logistics Kuwait

DHL Kuwait

City Group

Aramex

DSV

APL Logistics

TransCrate Logistics

Table of Contents

Table of Contents

1. Executive Summary

2. Kuwait Country and Logistics Sector Overview

2.1 Kuwait Country Overview

2.2 Overview of Kuwait’s Logistics Sector

2.3 Infrastructure Overview of Kuwait: Road and Railways, Airports and Seaports

2.4 Initiatives by Government to Establish Kuwait as a Logistics Hub

2.5 Current Stock of Warehousing In Kuwait at Sea Ports and Airports

2.6 Cross Comparison of Commercial Storage in Kuwait Warehousing Market, 2021

2.7 Kuwait Major Transport Infrastructure Projects

3. Snapshot of Industrial Market Landscape In Kuwait

3.1 Kuwait Real Estate Landscape, 2021

3.2 Average Rental Values of Industrial Plots in Kuwait

3.3 Price of Industrial Plots at Capital Governorate, Farwania, Ahmadi Governorate, 3.4 AL Kabeer and Al Jahraa Governorate

4. Kuwait Warehousing Market Overview and Genesis

4.1 Kuwait Warehousing Market Ecosystem

4.2 Business Cycle and Genesis of Kuwait Warehousing Market

4.3 Timeline of Major Players in Kuwait Warehousing Market

4.4 Value Chain Analysis in Kuwait Warehousing Market

4.5 Major Challenges in Value Chain

4.6 Kuwait Warehouse Selection Landscape

4.7 Classification of Major Warehousing Hubs in Kuwait

4.8 Quality of Existing Infrastructure of the Key Warehousing Hubs

4.9 Emerging Technologies in Kuwait Warehousing Market

5. Kuwait Warehousing Market Size and Segmentations

5.1 Total Warehousing Space in Kuwait, 2016-2021

5.2 Total Warehousing Space by Captive and Logistics Companies in Kuwait, 2021

5.3 Total Warehousing Space by Licensed and Non-Licensed Warehouse, 2021

5.4 Total Warehousing Space by Grade A/B/C Warehouse, 2021

5.5 Warehousing Split by Commercial Models, 2021

5.6 Warehousing Split by Region, 2021

6. Kuwait Warehousing Market Size and Segmentation (Excluding Captive)

6.1 Industry Revenue and Space, 2016-2021

6.2 By Type of Warehouses, 2021

6.3 Warehousing Split by End Users, 2021

7. Industry Analysis 

7.1 Trends and Developments in the Industry

7.2 Challenges in the Kuwait Warehousing Market

7.3 Procedure to start a Warehousing Business in Kuwait

7.4 Major Regulations for the Warehousing and Logistics Industry in Kuwait

7.5 Government Role in Kuwait Warehousing Market with Customs Clearance Process

7.6 Government Regulations for Food Items

7.7 Last-mile Delivery Centers Location

8. Competitive Landscape in Kuwait Warehousing Market

8.1 Competitive Scenario of Kuwait Warehousing Market

8.2 Directory of Major Players          

8.3 Strengths and Weaknesses of Major Warehousing Players in Kuwait

8.4 Cross Comparison of Major Warehousing Players in Kuwait (Basis Company Overview, Location, Year of Establishment, Total SQM Space, Number of Warehouses by Type, Total Number of Warehouses, Pricing, Occupancy Rate and others)

9. Kuwait Warehousing Market Future Outlook and Projections

9.1 Total Warehousing Space in Kuwait, 2021-2026F

9.2 Total Warehousing Split by Commercial Model

9.3 Total Warehousing Split by Type of Warehouses

9.4 Kuwait Warehousing Industry Revenue and Space (excluding Captive), 2021-2026F

9.5 Warehousing Split By Business Model

9.6 Warehousing Split By End Users

9.7 Warehousing Split By Region

9.8 Emerging Trends Across Key End-user Industries

10. Analyst Recommendations    

10.1 Stage of developments in Kuwait Warehousing

10.2 How Automation will Help in Warehousing Operations

11. Research Methodology

11.1 Market Definitions

11.2 Market Sizing Approach

11.3 Methodology used for Primary, Secondary and Sanity Checking Sample Size Inclusion

11.4 Research Limitations and Future Conclusions

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