DHL plans $575mn investment in Middle East, the ‘hub of global trade'
DHL Group, a global logistics powerhouse, plans to invest more than EUR500 million (US$575 million) in the rapidly expanding markets of the Middle East, with a strategic focus on Saudi Arabia (KSA) and the United Arab Emirates (UAE).
This investment will be made until the end of 2030, underscoring DHL's commitment to the region and its importance for the future of global trade. It's part of DHL Group's Strategy 2030, launched in 2024, and prioritises growth regions and geographic tailwinds generated by shifts in global trade.
John Pearson, CEO of DHL Express, commented: 'The region of the Gulf Cooperation Council (GCC) is rapidly emerging as a global logistics and innovation hub.
'Our investment reflects the region's increasing strategic importance in connecting Asia, Europe, and Africa, and our commitment to supporting its transformation into a catalyst for regional and global trade. DHL Express is seeing dynamic growth and export potential in the region's e-commerce sector, for example, which is providing opportunities for entrepreneurs and smaller businesses to expand their offering to global markets.'
DHL strengthens Middle East supply chains
The investment spans all four DHL divisions – DHL Express, DHL Global Forwarding, DHL Supply Chain, and DHL eCommerce. It will significantly strengthen the region's logistics backbone by enhancing infrastructure, expanding networks and capacity, and elevating service capabilities.
The company's divisions provide a broad portfolio of logistics and transportation services to customers in the Middle East, including express parcel delivery, air, ocean and overland freight, warehousing, fulfilment and distribution, customs brokerage and specialised operations for sectors such as life sciences, healthcare, e-commerce and battery logistics.
The Middle East is emerging as a vital trade hub, facilitating commerce between Asia, Europe, and the US while serving as a gateway to Africa. The region is witnessing growth not only due to attracting investments from multinationals expanding their operations, but also because Middle East-based businesses are growing and increasing their exports.
Hendrik Venter, CEO of DHL Supply Chain, Europe, Middle East & Africa, added: 'DHL Supply Chain has actively expanded in Saudi Arabia and the UAE in recent years, recognising the positive economic development, the increasing maturity and sophistication of supply chain operations in the region and the growing demand for specialised, outsourced logistics support.
'With a strong focus on the energy sector, life sciences, healthcare, and technology, we are poised to take advantage of our contract logistics expertise to meet the unique needs of our customers and drive innovation in these critical areas.'
For DHL Express, investments will be made in hub and gateway facilities, as well as enhancing aviation capacity to improve service efficiency and delivery speed. For DHL Global Forwarding, the company will expand its overall presence in the region, invest in its fleet – including electric trucks – and pursue joint venture initiatives such as the recent JV with Etihad Rail to enhance connectivity.
DHL Supply Chain will expand it contract logistics offering in both the UAE and KSA, which includes increasing warehousing capacity, upgrading equipment, and integrating advanced technology to optimise operations.
Amadou Diallo, CEO of DHL Global Forwarding, Middle East & Africa, remarked: 'This investment underscores our confidence in the Middle East's economic trajectory and our continued commitment to be ahead of the curve in digital capabilities and sustainable transportation for our customers.
'We also consistently aim to find entrepreneurial freight forwarding solutions that build supply chain resilience, keep their goods flowing and help them to uncover growth opportunities in a world that is characterised by uncertainty and volatility. By expanding our operations, we will be even better positioned to support our clients in navigating the complexities of international trade and logistics.'
The Group added that it recognises the growing opportunities in the energy sector, encompassing traditional oil and gas as well as renewables and electrification. The company also sees potential in the life sciences and healthcare markets, alongside the burgeoning e-commerce landscape.
The company is also committed to sustainability, investing in alternative fuel, and electric delivery vehicles, aviation fuels in air freight and biofuels for road and ocean freight, as well as solar energy and clean power for facilities. This commitment ensures that supply chains become more sustainable, and customers achieve their net zero ambitions.
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