The Middle East is entering a new phase of logistics expansion as governments accelerate long-term strategies to position the region as a global trade and distribution hub, according to Swisslog, a global leader in intralogistics automation for warehouses and distribution centres headquartered in Switzerland. 

The Mddle East logistics market is set to double this year compared with 2020, reflecting the scale of investment now flowing into infrastructure, technology, and supply chain modernisation.  This momentum is reshaping expectations for warehouse performance, energy efficiency, and service reliability. 

Swisslog outlines the following five trends that will define 2026’s warehousing landscape. These are:

Rapid automation and robotics adoption 

The regional warehouse robotics market is projected to climb past $714 million by 2030. Growth is driven by increasing labour costs, expanding e-commerce volumes, and national agendas that encourage rapid adoption of AMRs, AGVs, and robotic picking. AI and ML are enabling robots to take on high-variability tasks, improving throughput and reducing operational risk.

In this environment, companies are embracing AS/RS and robotic storage systems to maximise capacity and accelerate order fulfilment. 

AS/RS can utilise up to 85% of available floor space, delivering strong returns in sectors with dense SKU ranges such as grocery retail. By 2025, autonomous robots are expected to process up to 50% of e-commerce orders, underscoring how quickly automation is becoming a core pillar in both large distribution centres and micro-fulfilment hubs.

AI powers the smart warehouse

National strategies, including Saudi Vision 2030 and the UAE National AI Strategy 2031, are accelerating the use of AI, IoT sensors, and digital twins inside warehouses. 

AI is expected to contribute up to $320 billion to the Middle East’s GDP by 2030, and logistics operators are moving fast to integrate real-time data systems that forecast demand, improve uptime, and optimise storage density.

The UAE now ranks among the top 11 countries on the World Bank’s Logistics Performance Index, signalling the impact of sustained investment in automation-led efficiency. 

Advances in warehouse control software are also playing a central role. Insights from Autostore’s report show that optimised bin selection and order batching can increase retrieval speeds by up to 20%, delivering quantifiable gains in speed and accuracy for operators.

E-commerce boom drives automation

Online shopping continues to reshape warehouse footprints across the Middle East, with the e-commerce market expected to rise to $50 billion this year. 

This shift is driving strong demand for fast-turnaround fulfilment centres, micro-warehouses close to urban centres, and more sophisticated reverse logistics systems. Fulfilment speeds, currently measured in hours, are expected to drop to 30 minutes by 2028 for leading operators, indicating that advanced automation is becoming central to scale, reliability, customer satisfaction and competitive advantage.

Sustainability takes centre stage

Sustainability is moving to the heart of warehousing strategies, driven by national commitments such as the UAE’s Net Zero 2050. The region recorded its highest increase in renewable energy capacity in 2022, adding 3.2 gigawatts. 

Automation plays a direct role in lowering energy use. Many of these systems can be powered through renewable sources. High-bay pallet stacker cranes equipped with regenerative braking can reduce consumption, while electric automation systems often operate at less than 0.1 kW per hour. 

Swisslog said it has developed the first fully solar-powered warehouse automation system, which illustrates how technology can support long-term sustainability goals while maintaining operational performance.

Shift toward hybrid and omnichannel fulfilment

Retailers and logistics providers are reconfiguring warehouses to manage multiple fulfilment streams from the same facility. Workflows are being redesigned for store replenishment, same-day delivery, B2B orders, and returns, all supported by automation-ready layouts and real-time data platforms. 

Insights from Autostore’s report show that 93% of supply chain leaders now prioritise throughput improvement, and 97% have implemented some form of automation. 

Swisslog pointed out that as expectations rise in major cities, micro-fulfilment centres and last-mile hubs are becoming essential to deliver reliability at peak demand.

Warehousing in the Middle East is evolving into a data-driven, automated, and sustainability-focused ecosystem. The next phase will reward operators that invest early, adapt quickly, and build for long-term regional growth, it added.

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