The DHL Group has revealed plans to invest more than €500m in its Middle East operations as the region’s strategic importance continues to grow.
The investment will span all four of the company’s divisions - Express, Forwarding, Supply Chain and eCommerce - and will focus on the “rapidly expanding” Gulf markets of Saudi Arabia (KSA) and the United Arab Emirates (UAE).
The investment period runs up to 2030 and will enhance infrastructure, expand networks and capacity, and elevate service capabilities, the company said.
Investments at DHL Express include hub and gateway facilities, as well as enhancing aviation capacity to improve service efficiency and delivery speed.
At 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 joint venture with Etihad Rail to enhance connectivity and logistics capabilities.
The Supply Chain division will expand the contract logistics offering in both the UAE and KSA, which includes increasing warehousing capacity, upgrading equipment, and integrating advanced technology to optimise operations.
And for DHL eCommerce, the acquisition of the delivery provider AJEX in Saudi Arabia will facilitate better last-mile delivery services in a growing market.
“The region of the Gulf Cooperation Council (GCC) is rapidly emerging as a global logistics and innovation hub,” said John Pearson, chief executive 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.”
DHL said that 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.
Amadou Diallo, chief executive 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 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.”
Sectors that DHL said are growing include the energy sector, encompassing traditional oil and gas as well as renewables and electrification, life sciences and healthcare markets and e-commerce landscape.
“For example, KSA is experiencing a strong inbound market for B2C, especially with high-end goods, driven by ongoing tourism initiatives and events,” the company said.
DHL added that investments will also target sustainability with investments in alternative fuel, and electric delivery vehicles, aviation fuels in airfreight and biofuels for road and ocean freight, as well as solar energy and clean power for facilities.
