Situated at the crossroads of global commerce, the GCC is tied to one of the world’s most important trade corridors, the Red Sea, which carries 12% of global trade. Regional economies are diversifying, strengthening their role in international supply chains and investing in advanced manufacturing and distribution zones. In turn, warehouse operators face mounting pressure to increase speed, resilience, and efficiency. Against these structural shifts, Swisslog highlights five warehouse challenges that automation is positioned to solve across MENA by 2026.

1. Labour shortages and rising costs

Warehouse processes such as picking and palletising can account for up to 60% of operational costs, with labour representing more than half of total warehouse expenditure. In high-demand logistics corridors, large turnover in manual roles and increasing wage expectations are intensifying pressure on operators to do more with fewer people.

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. The Middle 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 five trends that will define 2026’s warehousing landscape.