DHL group to invest more than €500 million in Middle East
DHL Group, the world's leading logistics provider, has announced plans to invest more than €500 million in the Middle East, with a strategic focus on the rapidly expanding Gulf markets of Saudi Arabia and the UAE.
This investment is set to take place between 2024 and 2030. DHL Group's Strategy 2030, launched in 2024, prioritises growth regions and geographic tailwinds generated by shifts in global trade.
The investment spans all four DHL divisions – DHL Express, DHL Global Forwarding, DHL Supply Chain, and DHL eCommerce – and will significantly strengthen the region's logistics backbone. By enhancing infrastructure, expanding networks and capacity, and elevating service capabilities, DHL aims to empower businesses operating across and with the Middle East to capitalise on growth opportunities from trade, ensuring support and resilience for customers as they navigate evolving market demands.
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 specialized operations for sectors such as life sciences, healthcare, e-commerce and battery logistics.
'The Gulf Cooperation Council (GCC) is rapidly emerging as a global logistics and innovation hub,' said John Pearson, CEO of DHL Express. '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.'
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 Gulf- and 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 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 specialized, 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.'
Amadou Diallo, CEO of DHL Global Forwarding, Middle East & Africa, said: '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 characterized 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.'
DHL Group 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. For example, Saudi Arabia is experiencing a strong inbound market for B2C, especially with high-end goods, driven by ongoing tourism initiatives and events.
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