What are the most pressing challenges for Chinese logistics companies entering the U.A.E market?
Three major issues—gaps in Arabic-language services, efficiency black holes, and warehouse costs by 300%—have left enterprises caught in a "desert storm."
Arabic Language Service Gaps
Over 60% of companies operating in the Middle East face language barriers. In the UAE, only 42% of logistics customer service supports Arabic (the official language); the rates are even lower in Saudi Arabia (35%) and Egypt (28%).
During Ramadan in 2025, one leading logistics company experienced customs clearance delays for an average of 2,300 orders per day due to Arabic-speaking agents making up less than 18% of the support team, resulting in a 30% drop in customer satisfaction.
Efficiency Black Holes
On average, it takes 36 hours to resolve logistics issues—far exceeding the "18-hour golden window" for responding to customer complaints.
The root causes include:Dominance of manual sorting, with efficiency only one-third that of warehouses in China.Lack of a standardized address database in the U.A.E, resulting in vague delivery locations and a repeated delivery rate of up to 35%.Manual sorting continues to drag down operational efficiency.
Uncontrolled Costs
The Israel-Palestine conflict has halved Red Sea shipping capacity, increasing cargo dwell time at Saudi Arabia's Jeddah Port from 7 to 21 days. Temporary warehouse rent has surged to $15/sqm/month (+220%).
The Saudi policy requiring 30% of labor to be local hires has driven labor costs up by 45%.In the U.A.E, upgrading temperature-controlled warehouses to meet compliance standards costs over $500,000 per 10,000 sqm.
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