DHL Group (DHL) has announced plans to invest more than EUR 500 million (approximately US$578 million) in the Middle East, with a focus on the rapidly expanding Gulf markets of Saudi Arabia (KSA) and the United Arab Emirates (UAE).
The global logistics company said this investment is set to take place between 2024 and 2030 and underscores DHL's commitment to the region, reflected in DHL Group's Strategy 2030, which 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.
DHL noted that 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 specialised operations for sectors such as life sciences, healthcare, e-commerce and battery logistics.
Growth opportunities in the Middle East
"The region of 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."
DHL said in the announcement that 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 — with the region 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, said DHL Supply Chain has actively expanded in Saudi Arabia and UAE in recent years, recognizing 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," he said.
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."
He added that by expanding operations, DHL will be even better positioned to support its clients in navigating the complexities of international trade and logistics.
DHL Group said it also 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, the Kingdom of Saudi Arabia (KSA) is experiencing a strong inbound market for B2C, especially with high-end goods, driven by ongoing tourism initiatives and events.
DHL said the multi-million investments will focus on investments in hub and gateway facilities, as well as enhancing aviation capacity to improve service efficiency and delivery speed for DHL Express; expanding overall presence in the region, investment in its fleet – including electric trucks – and joint venture initiatives to enhance connectivity and logistics capabilities for DHL Global Forwarding.
DHL is also looking to 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 as part of the investment plans for DHL Supply Chain.
For DHL eCommerce, the logistics giant said the acquisition of the delivery provider AJEX in Saudi Arabia will enhance its e-commerce capabilities, facilitating better last-mile delivery services.
DHL 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.
