Enhancing Cold Chain Logistics in the GCC: A Strategic Path to Food Security

The Gulf Cooperation Council (GCC) is undergoing a significant transformation in agrifood logistics and cold chain infrastructure, driven by national food security strategies, technological advancements and increasing consumer demand for fresh produce, dairy, seafood and chilled and frozen meat.

With governments investing in sustainable food production, advanced logistics and climate-resilient storage, the region presents vast opportunities for Dutch companies specializing in post-harvest solutions, cold chain logistics and supply chain optimization.

The 2025 Desk Study Report, “Business opportunities in the GCC for Dutch agrifood companies active in post-harvesting, cold and supply chain’ commissioned by the Netherlands Agricultural Network in the GCC, provides in-depth insights into the evolving market landscape, regulatory environment and potential for Dutch expertise to contribute to the region’s food security and logistics transformation.

Market Drivers and Growth Factors

Food security remains a top priority across the GCC, where extreme climatic conditions and water scarcity limit local agricultural production. Governments are investing heavily in food supply chain resilience, increasing cold storage capacities and promoting controlled environment agriculture (CEA) and aquaculture to reduce dependency on imports. The growing demand for fresh produce, dairy and seafood, along with rapid urbanization and population growth, further accelerates the need for robust cold chain solutions.

The expansion of cold chain logistics in the GCC is fueled by several key factors, including:

• Rising Food Demand: Population growth, increasing urbanization and evolving consumer preferences for fresh, organic and high-quality produce are reshaping food supply chains.

  
  

• Shift Towards Local Production: Governments are reducing import reliance by investing in domestic greenhouse farming, aquaculture and sustainable food production. Notably, Saudi Arabia’s NEOM and the UAE’s AgTech parks are spearheading these developments, emphasizing the need for efficient cold chain infrastructure.

  
  

• Sustainability and Efficiency: Cold chain innovations powered by renewable energy, such as solar-driven refrigeration, are addressing both environmental concerns and cost efficiency in the region’s harsh climate. These sustainable solutions are increasingly crucial as the region invests in climate-resilient technologies.

  
  

• Technology and Traceability: Blockchain, IoT and AI-driven logistics solutions are becoming essential for ensuring food safety, reducing waste and improving supply chain transparency. These technologies are particularly valuable in the GCC, where transparency in food sourcing and quality control is critical.

The region is also seeing a rise in organized retail, with hypermarkets, e-commerce and specialized food hubs driving demand for cold storage, temperature-controlled transport and last-mile logistics. The growing investments in greenhouse farming, vertical agriculture and aquaculture are increasing the need for efficient cold chain infrastructure to reduce post-harvest losses and improve supply chain efficiency.

Food Loss and Waste: A Critical Challenge

One of the biggest challenges facing the GCC’s agrifood sector is food loss and waste (FLW). An estimated 30-40% of food is lost before reaching consumers. Key causes include cold chain gaps, high refrigeration costs, supply chain fragmentation and limited awareness of loss reduction practices. Improving cold chain infrastructure is essential to addressing these challenges and ensuring food reaches consumers in optimal condition.

Government Initiatives and Regulatory Support

National food security strategies across the GCC are key enablers of market growth. The 2025 Desk Study Report identifies several government-driven initiatives that are shaping the agrifood logistics landscape:

• Saudi Arabia’s Vision 2030: This initiative prioritizes investment in high-tech agriculture, smart logistics hubs and infrastructure projects such as NEOM, which integrates advanced cold chain solutions and AI-powered supply chain optimization. The expansion of logistics centers, with 22 active hubs out of a planned 59, is strategically positioned to enhance food distribution.

  
  

• UAE’s National Food Security Strategy 2051: This strategy emphasizes the development of climate-controlled logistics hubs, blockchain-enabled food traceability and the expansion of free zones such as Jebel Ali Freezone (JAFZA) and Khalifa Economic Zone Abu Dhabi (KEZAD).

  
  

• Oman’s Vision 2040: Oman is emphasizing aquaculture and agrifood trade logistics to strengthen food security and diversify its economy.

  
  

Regulatory support, including strict food safety laws, import-export facilitation and financial incentives for logistics investment, further enhances the business environment for international firms looking to enter the GCC market.