Perishable storage logistics – The GCC’s logistics transformation
As the Gulf Cooperation Council (GCC) nations work to diversify their economies and enhance food security, cold perishable logistics have emerged as a critical enabler for national food security development. A recent Dutch fact-finding trade mission held from May 25–29, 2025, to Saudi Arabia and the United Arab Emirates (UAE) illuminated how advanced cold chain and post-harvest solutions are reshaping regional supply chains. The trade mission was organised by the Netherlands’ Agricultural Network in the GCC.
Text: Backed by insights from a 2025 Desk Study Report commissioned by the Dutch Ministry of Agriculture, Fisheries, Food Security and Natureon business opportunities for Dutch agrifood companies in the GCC, Dutch logistics and agri‑tech experts explored innovative strategies, designed to meet the region’s pressing food security and sustainability needs.
Organised to understand local gaps, build lasting partnerships, and align Dutch innovation with Middle Eastern priorities, the trade mission included visits to leading market players such as KEZAD, Spinneys, DP World, Florius Flowers, Nadec, Tamimi and Lulu Hypermarkets, as well as meetings with government bodies like MEWA and MISA. The delegation also reviewed local initiatives aimed at harnessing technology—from AI-based supply chain monitoring to blockchain-enabled traceability—to overcome longstanding challenges in agrifood logistics.
Logistics transformation in a climate of challenge
The GCC’s arid climate, with annual rainfall often measuring less than 100 mm, has long complicated domestic agricultural production. Extreme weather patterns coupled with water scarcity force the region to import roughly 80% of its food. These inherent limitations have also contributed to staggering food loss rates—ranging between 30% and 40%—even before products reach local consumers. While low labour costs are a regional advantage, fragmented supply chains and under-skilled workforces further stress the sustainability of food distribution.
Both Saudi Arabia and the UAE are addressing these hurdles through ambitious national strategies. Saudi Vision 2030 is championing investments in high-tech agriculture and intelligent logistics hubs, including groundbreaking projects like NEOM. Similarly, the UAE National Food Security Strategy 2051 promotes climate-controlled logistics hubs and digital innovations to streamline food traceability. Forecasts indicate that Saudi Arabia’s cold chain market, valued at $3.8 billion in 2023, is predicted to grow at a compound annual growth rate (CAGR) of 12–15%, while the UAE market could reach $4.8 billion by 2027. The dual focus on technological upgrades and efficient resource management is central to transforming the region’s supply networks.
Cold Chain: A strategic necessity, not a luxury
In a region where importing the majority of food is the norm, ensuring food safety while minimizing waste has become a strategic imperative. Cold chain solutions—from pre-cooling and grading to temperature-controlled transportation—play a pivotal role in maintaining high-quality perishables. The 2025 Desk Study Report highlights that enhanced cold storage is not only critical for reducing post-harvest losses but also vital for supporting local agricultural initiatives, especially as the Middle East grapples with food security challenges.
During the trade mission, delegates observed that rural cold storage and temperature-controlled transport remain underdeveloped in Saudi Arabia. Regulatory hurdles, particularly for small and medium enterprises (SMEs), further compound these difficulties. Although the UAE boasts state-of-the-art free zone infrastructure, challenges such as high energy consumption and inconsistent inter‑emirate regulations continue to hamper efficiency. These vulnerabilities affirm that cold logistics systems are a strategic investment rather than a luxury.
Dutch solutions for GCC-specific challenges
Dutch companies have earned a global reputation for their expertise in agri‑logistics and sustainable innovation. Amid the GCC’s dynamic market, these firms are uniquely positioned to address critical challenges by introducing technologies such as solar-powered refrigeration, modular cold storage units, and AI‑driven supply chain monitoring. Importantly, blockchain-enabled traceability systems promise enhanced transparency throughout the food distribution network—a key factor in today’s market where quality control and food safety are paramount.
Beyond technology, the holistic approach of Dutch innovators extends to digitalising import handling and refining last‑mile delivery. With rising investments in controlled environment agriculture (CEA) and aquaculture, the adoption of renewable energy-driven solutions is proving essential. Whether through eco‑friendly packaging or circular economy practices like waste valorisation, Dutch expertise is rapidly becoming indispensable for the GCC’s quest to build robust, sustainable cold chain networks.
Regional integration and the cold chain corridor vision
A key highlight from the trade mission was the emerging vision of regional cold chain corridors. Aligned with the broader Gulf Etihad Railway project, these corridors are intended to offer seamless, multimodal transport solutions across national borders—uniting disparate segments of the GCC market. By integrating temperature‑controlled warehouses and enhancing digital monitoring systems, the envisioned corridors could serve as vital arteries in an interconnected logistics network.
Public‑private partnerships (PPPs) are being actively explored to realize this corridor vision, offering opportunities for joint investments by both Dutch and regional stakeholders. The integration of digital cold chain solutions—such as real‑time monitoring and AI‑powered route optimisation—further reinforces the feasibility of a pan‑GCC logistics network. This strategic initiative is set to bolster food distribution and supply chain efficiency in a region where market shifts are being driven by rapid urbanisation and evolving consumer preferences.
UAE: A gateway to regional logistics leadership
Among the GCC nations, the UAE has established itself as a dominant logistics hub. Featuring world‑class centres such as Jebel Ali, DWC, and KEZAD, the country is at the forefront of cold chain innovation. Investments in IoT‑enabled warehouse monitoring, automated customs clearance, and the emergence of thematic hubs—such as FoodTech Valley—have positioned the UAE as a prime location for pioneering digital transformations in logistics.
However, to fully leverage these technological advancements, there remains a need for greater regulatory harmonisation and the adoption of sustainable energy practices across emirates. With the upcoming 2ndWorld Cold Chain Expo Dubai set to take place in September 2025, the stage is set for global collaboration that can help localise Dutch innovations further. This melding of international expertise with regional ambition is expected to rapidly transform the logistics landscape.
A cold chain future, warming regional partnerships
The May 2025 trade mission provided a clear demonstration of strategic alignment between Dutch innovation and Gulf ambition. As the UAE and Saudi Arabia accelerate their logistics agendas, the opportunities for knowledge transfer, investment, and collaborative ventures are immense. Enhanced investments in cold storage, digitalisation of supply chains, and sustainable logistical solutions will not only secure food supply but also drive economic growth across the region.
Dutch firms are now encouraged to build local alliances, engage proactively with regulators, and customise their offerings to suit the region’s unique climatic and cultural conditions. Moreover, with domestic production on the rise through initiatives like greenhouse farming and vertical agriculture, the efficient management of post‑harvest solutions will be crucial. This transformative agenda—fueled by next‑generation technology and collaborative partnerships—portends a resilient and sustainable future for the GCC’s agrifood sector.
