Growing investment opportunities are emerging in MENA across hospitality-focused third-party logistics operations (3PL). After pandemic-related supply chain disruptions and inflation increased operational pressures in hospitality, logistics operations have gained stronger commercial importance. Consequently, the industry has shifted its focus toward delivery logistics, operational efficiency, rider management and aggregator-focused business-development capabilities.
3PL market growth
Third-party logistics services are today providing regional hospitality businesses with scalable revenue opportunities, supporting expanding food aggregation platforms. Additionally, rising consumer demand for convenience is accelerating investments across delivery infrastructure, operational technology and logistics-focused hospitality workforce development. The Middle Eastern food delivery and logistics market reached USD 18 billion in 2024 and could exceed USD 32 billion by 2029. Furthermore, Africa’s food delivery and logistics sector stood at USD 6 billion in 2024. Moreover, the sector may exceed USD 14 billion by 2029. Market growth projections indicate annual expansion rates approaching 12 percent across Middle Eastern markets and 18 percent throughout Africa.
Operational challenges
Logistics operators face licensing complexities, evolving transportation regulations and strict compliance requirements across several Gulf hospitality markets. Furthermore, workforce nationalization initiatives, including Saudization and Omanization, are reshaping recruitment strategies, operational structures and hospitality training programs. Hospitality companies also require experienced operational leaders capable of managing peak demand periods, while maintaining consistent delivery performance. Companies are investing heavily in workforce training, technology integration and rider-safety initiatives, which support long-term operational sustainability objectives.
Digital demand accelerates expansion
Increasing smartphone penetration, urbanization and convenience-driven consumer behavior are accelerating demand throughout regional hospitality logistics operations. Furthermore, delivery platforms, including Talabat, Deliveroo and Careem, continue to drive operational expansion across MENA hospitality delivery ecosystems.
With hospitality businesses increasingly prioritizing scalability and operational flexibility, 3PL services are playing a key role in supporting long-term regional growth opportunities.
Rita Ghantous
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