DHL Express is looking to expand its presence in Abu Dhabi as part of its larger Middle East growth plans, recently breaking ground for a new express logistics hub with local holding company partner, Middle East General Enterprises.

The American logistics firm announced that together with MGE, it will invest up to US$100 million in the planned 30,000 square meter facility, to be built at the Abu Dhabi Airports Free Zone Authority. It is targeted to be operational by the fourth quarter of 2021.

“In line with our long-term objectives, the new facility at Abu Dhabi International Airport is our latest investment to support global trade to and from the capital of the UAE (United Arab Emirates),” said Nour Suliman, chief executive, DHL Express Middle East and North Africa.

Abu Dhabi wants to build its gateway into a regional logistics hub.

The DHL groundbreaking follows the signing of a 27-year lease agreement between MGE and ADAFZA, allowing for the construction on the rented property.

Abu Dhabi has noted increases in DHL’s operations at its main gateway over the years. Prior to this, DHL will grow its capacity from currently operating a 4,300 square meter facility at Abu Dhabi International Airport's logistics park.

The new facility, according to DHL Express, will have access to both airside and landside.