From Import Hub to Export Machine

By Liesl Venter

A manufacturing surge across the GCC is reshaping outbound project cargo flows. Industry leaders including Al Faris and DHL Global Forwarding reveal what’s moving, where it’s headed and how demands are changing.

From Issue 1, 2026 of Breakbulk Magazine

(6-minute read)

For decades, the Gulf’s role in global project logistics was defined by imports. Power plants, refineries, desalination facilities and industrial complexes were built on the back of heavy-lift cargo arriving from Europe, Asia and North America. That dynamic is now shifting.

Across the region, industrial diversification strategies and local content policies are transforming the region from a destination market into an emerging source of project cargo. What were once episodic, project-driven demand spikes are giving way to a more structural, year-round requirement for heavy-lift, specialized transport and engineering capability.

“We’ve seen a clear shift from project spikes to more steady, structural demand,” said Gagan Shetty, general manager of sales and marketing at Al Faris Group. “As Gulf Cooperation Council countries push diversification and expand non-oil industries, there is a growing pipeline of steel mills, modular fabrication yards, process plants, data centers, renewables and logistics hubs."

That shift is translating into outbound cargo flows. According to Peter Dudas, head of Industrial Projects MEA at DHL Global Forwarding, GCC-manufactured industrial goods are beginning to move from regional supply into export markets. “We are consistently seeing outbound project cargoes, including fabricated steel structures, process equipment and large, prefabricated modules,” he said.

Underpinning this transition is a deliberate push to attract foreign direct investment and embed manufacturing deeper into the region’s economic model. “Historically, the GCC’s small domestic market limited manufacturing investment,” explained Edward James, head of content and research at MEED. “But over the past two decades, enforced local content rules and guaranteed project demand have encouraged global manufacturers to invest locally, supported by cheap energy, competitive utilities and strong export infrastructure.”

Dharmendra Gangrade, thought leader on global shipping and logistics and a member of the Breakbulk Advisory Board, said the Middle East is entering a “new phase of logistics demand.” He added: “Sustained capital expenditure across oil and gas, infrastructure and renewables is driving consistent requirements for transporting heavy modules, compressors, reactors and other super-ODC cargo.”

Gangrade said that mega-projects linked to Saudi Vision 2030, alongside large-scale developments in the UAE, are reshaping how oversized cargo is planned, handled and moved. “Hydrogen and ammonia projects, in particular, are introducing new logistics challenges, from wind turbine blades and nacelles to oversized process equipment. Facilities such as NEOM’s port are already demonstrating how the region is positioning itself to handle these complex cargoes at scale.”

Compared to a decade ago, operators are handling far more locally fabricated, high-value cargo, said Shetty. “Today we move a wide range of GCC-manufactured components, including large steel structures and modular building units, preassembled process skids, pipe racks and modules, storage tanks, silos, pressure vessels and reactors, as well as transformers, turbines, generators and major electrical equipment.”

He added that local production is increasing logistical complexity. “Because these items are now being produced within the GCC, we are moving them multiple times across the value chain, from fabrication yards to coating yards, then to project sites and, increasingly, to ports for export.”

Experts agree the manufacturing and fabrication sector across the GCC is maturing at a pivotal moment of geopolitical and economic turbulence, as companies hedge risk, de-risk supply chains and nearshore production. “Simply put, there is a notable shift of sourcing from China to the Middle East,” said Dudas. “With disruptions in key shipping corridors, the importance of having options grows significantly.”

Different Speeds, Different Strengths

According to Dudas, the UAE is currently leading the region, leveraging its infrastructure, free zones and a maturing manufacturing sector to support exports linked to petrochemicals and LNG projects.

“Oman is emerging as a strategic player for industrial fabrication and, more recently, solar components, thanks to its open-sea access and industrial zones,” he told Breakbulk. “At the same time, Saudi Arabia is pushing to establish itself as a manufacturing base for the wind industry, investing in joint ventures with leading global OEMs and building on its significant investments in wind farms over the next five years.”

He added that Saudi Arabia is also seeking to capitalize on its relatively lower cost base and dual maritime access to both the Red Sea and the Arabian Gulf. “This offers a hedge against disruptions affecting either of the region’s key maritime trade choke points,” he said.

Shetty agrees, noting that the industrial clusters around the Jebel Ali Port and Jebel Ali Free Zone (JAFZA) in the UAE now house more than 700 manufacturers operating across metals, machinery and engineered products. In Abu Dhabi, zones such as Khalifa Economic Zones Abu Dhabi (KEZAD) and Industrial City of Abu Dhabi (ICAD) support steel, construction materials, engineered components and energy-related fabrication.

“In Saudi Arabia, we are seeing significant development across the industrial cities of Jubail, Yanbu, Ras Al Khair and Jazan,” said Shetty. “At the same time, giga-project supply chains linked to NEOM and other Vision 2030 developments, including fabricated modules, wind components and major infrastructure elements, are moving at scale.”

In Oman, the Duqm Special Economic Zone and the Sohar Industrial Area are anchoring a growing base of export-oriented heavy manufacturing, including green steel and energy projects.

“Oman, in particular, is attracting investment targeted at international markets,” said James. “Its large ports and free zones are well positioned geographically, allowing shipping lines to serve both East Asia and Europe without significant deviation. Combined with strong infrastructure and incentives such as competitive gas, feedstock and land costs, Oman is increasingly positioned as an export platform, not only for global markets, but for sub-Saharan Africa as well.”

Early Engagement

Accessing the GCC’s manufacturing and industrial buildout increasingly depends on getting involved early, often before cargo ever reaches a port. Shetty said EPCs, plant owners and manufacturers are bringing heavy-lift partners in at concept or FEED stage to validate modularization and local fabrication strategies and to confirm transport envelopes, route constraints and port capability before equipment dimensions are finalized allowing for the de-risking of projects upfront rather than firefighting once equipment has already arrived at the port.

Providers also need to understand the region’s emerging industrial corridors. In the UAE, the Jebel Ali–JAFZA industrial corridor and the ICAD–KEZAD axis are becoming major arteries for inbound raw materials and outbound fabricated industrial products, while Saudi Arabia’s industrial cities and gigaproject supply chains are generating strong Red Sea–Gulf–inland flows. In Oman, Duqm and Sohar are evolving into heavy-industrial and export hubs tied to metals, energy projects and export-oriented manufacturing.

On execution, Shetty and Dudas emphasized that permitting, compliance and transparency are differentiators. Moves frequently involve multiple authorities: traffic, municipalities, industrial zone operators and ports, alongside technical constraints such as bridge limits and curfews. Dudas said project customers increasingly require strict regulatory compliance, mature HSE culture and near-real-time supply chain visibility through digital tools.

While the shift toward localized manufacturing and export-oriented project cargo is creating new opportunities, it is also introducing operational and structural challenges.

According to Dudas, port capacity and access remain key pressure points, particularly for oversized renewable energy components such as wind turbine blades, which require specialized vessels and dedicated handling infrastructure. “Geopolitical risks can also have a direct impact on shipping,” he said, pointing to disruptions in the Red Sea and Bab el-Mandeb and the potential threat of closure at the Strait of Hormuz. “This adds complexity and demands greater flexibility in vendor selection, routing decisions and proactive shipment management.”

He added that electrification of last-mile transport remains in its early stages across the GCC, largely due to the slow rollout of charging infrastructure, limiting progress toward lower-emission project logistics.

From an operational perspective, Shetty said last-mile access within industrial zones continued to be a persistent challenge. “Negotiating narrow internal roads, low pipe racks, overhead cables and existing utilities inside industrial estates is still difficult,” he said. “Many plants were not designed for 800-ton cranes or SPMTs, which means we must invest heavily in ground-pressure studies and temporary civil works before moves can take place.”

Environmental conditions add complexity. Extreme heat, humidity and dust place additional strain on people and equipment, making detailed planning, redundancy and preventive maintenance essential.

Gangrade added that navigating the GCC’s project cargo environment requires robust risk management and strong partnerships. “Geopolitical instability, including vessel detentions, GPS interference and conflict-related disruptions threatens routing reliability,” he said. “Insurance volatility, particularly fluctuating war-risk premiums, is increasing costs and forcing more dynamic coverage strategies.”

He also highlighted infrastructure bottlenecks such as port congestion and inadequate last-mile connectivity, as well as regulatory fragmentation across the GCC. “Non-harmonized customs procedures and complex permit requirements still create unpredictable timelines.”

Looking Ahead

Industry players expect the GCC’s manufacturing push to translate into a sustained rise in outbound project cargo, underpinned by national strategies to expand non-oil exports.

“GCC strategies to lift non-oil exports toward US$1 trillion by 2030 rely heavily on industrial goods,” said Shetty. “We are already seeing increased outbound movements of steel products, pipes and structural components, fabricated modules and skids for power, water and industrial plants, cables, electrical equipment and packaged substations, as well as process equipment for petrochemical and mining projects.”

Dudas expects this trend to accelerate as manufacturing localization and renewable energy investment gathers pace. “We anticipate increased localization of manufacturing, continued renewable energy expansion and growing demand for specialized project logistics,” he said. “The Middle East, and the GCC in particular, is among the fastest-growing regions globally, driven by large-scale state investment, foreign direct investment and strategic infrastructure development.”

He added that local production of renewable energy components, such as wind turbine blades and nacelles, is already helping to ease pressure on ports and handling infrastructure. “Localization reduces dependency on overseas suppliers and mitigates some of the congestion and handling challenges associated with oversized imports, while supporting broader economic diversification initiatives such as Vision 2030.”

DHL has been closely involved in this transition across the region. “We are supporting major projects in Saudi Arabia, Qatar and the UAE across traditional oil, gas and petrochemicals, as well as new energy developments,” he said.

For James, the longer-term significance lies in the value created through downstream industrialization. “Industrial manufacturing allows the region to capture far more value from its energy resources,” he said. “Instead of exporting oil or gas in raw form, countries can convert these inputs into petrochemicals, plastics, metals and manufactured products and then build secondary industries around them.”

That clustering effect, he said, creates jobs, drives reinvestment and strengthens economic resilience. “Downstream manufacturing generates multiple layers of economic activity. It diversifies the economy, creates employment and reduces exposure to commodity price cycles, an increasingly important consideration as the region plans for a long-term decline in fossil fuel demand.”

The GCC's booming project landscape will be the focus of a keynote speech at Breakbulk Middle East. MENA Projects Driving Global Growth, presented by the EIC's Ryan McPherson, will take place on the main stage on Wednesday, Feb 4 at 10:50am.

Top photo: Al Faris handles project cargo in the UAE. Credit: Al Faris

Second photo: Gagan Shetty, Al Faris. Credit: Al Faris

Third photo: Peter Dudas, DHL Global Forwarding. Credit: DHL