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DHL to invest $500m in the Middle East

By Pramod Kumar
A DHL truck. The US company intends to vastly increase its presence in the Middle East Pexels/Efrem Efre
DHL intends to vastly increase its presence in the Middle East, primarily in the UAE and Saudi Arabia
  • UAE and Saudi Arabia focus
  • Rising ecommerce demand
  • Electric trucks, other tech planned

US logistics company DHL is planning to increase its presence in the Middle East, targeting the rapidly growing markets of the UAE and Saudi Arabia.

It intends to invest more than €500 million ($572 million) in the region as part of its 2030 strategy plan. 

The expansion spans all four of DHL’s divisions – Express, Global Forwarding, Supply Chain and Ecommerce – aimed at strengthening logistics infrastructure across the Middle East.

The express division will invest in hub and gateway infrastructure, while expanding aviation capacity to improve delivery speed and service efficiency.

“The region of the 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 importance in connecting Asia, Europe and Africa. We are seeing dynamic growth and export potential in the region’s ecommerce sector,” he said.

The Global Forwarding division will strengthen its regional presence by expanding its fleet, including electric trucks, and pursuing joint ventures, such as its collaboration with Etihad Rail, to enhance connectivity and logistics services.

The supply chain division will scale up its contract logistics operations in the UAE and Saudi Arabia by expanding warehousing capacity, upgrading equipment, and incorporating advanced technologies.

The company expects a minority stake acquisition in Saudi-based delivery provider Ajex Logistics Services will help increase its ecommerce capabilities, facilitating improved last-mile delivery services.

DHL operates in more than 220 countries and territories, employing 602,000 people globally. It generated €84.2 billion in revenue last year.

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