Plans to invest more than €500 million in the Middle East, with strategic focus on the rapidly expanding Gulf markets of the Kingdom of Saudi Arabia (KSA) and the United Arab Emirates (UAE), have been announced by DHL Group.
A company statement said the investment underscores commitment to the region and its importance for the future of global trade.
The investment, which will be rolled out until 2030, spans all four of the logistics operator’s divisions for express freight, global forwarding, supply chain and e-commerce – aiming to significantly strengthen the region’s logistics backbone.
The investments will focus on the following areas across business units:
- Express: Investments will be made in hub and gateway facilities as well as enhancing aviation capacity to improve service efficiency and delivery speed.
- Global forwarding: The company will expand its overall presence, invest in its fleet (including electric trucks) and pursue joint venture initiatives, such as its recent collaboration with Etihad Rail, to enhance connectivity and logistics capabilities.
- Supply chain: Contract logistics in the UAE and KSA will be expanded. This will increase warehousing capacity, upgrade equipment and integrate advanced technology to optimise operations.
- E-commerce: The acquisition of the delivery provider AJEX in Saudi Arabia will enhance e-commerce capabilities, facilitating better last mile delivery services.
John Pearson, who heads DHL Express, said the Gulf Cooperation Council region 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.
“We’re seeing dynamic growth and export potential in the region’s e-commerce sector, for example, which is providing opportunities for entrepreneurs and small businesses to expand their offering to global markets,” he said.
The Middle East is also emerging as a vital trade hub, facilitating commerce between Asia, Europe and the US while serving as a gateway to Africa. It has attracted investment from multinationals while businesses based in the Gulf and Middle East are growing and increasing their exports.
Hendrik Venter, who heads DHL Supply Chain for Mainland Europe, Middle East and Africa, said the division has responded to this economic growth by expanding in Saudi Arabia and the UAE in recent years.
“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, who heads DHL Global Forwarding in the Middle East and Africa, said the investment underscores the company’s confidence in the region’s economic trajectory and its commitment to remaining ahead of the curve in its service offerings to 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 characterised by uncertainty and volatility,” Diallo said.
“By expanding our operations, we will be even better positioned to support our clients in navigating the complexities of international trade and logistics.”
