The German supply chain service provider DHL Group will invest more than $575 million between 2024 and 2030 to expand its logistics networks in Saudi Arabia (KSA) and the United Arab Emirates (UAE), the company said today.
The investment is the latest example of global logistics providers bulking up their capabilities in the Middle East region. For example, CMA CGM last year unveiled a plan to develop port infrastructure, logistics services, and multimodal platforms around the Red Sea. Similar announcements have come from Ceva Logistics and with DB Schenker, and Saudi Arabia itself has an official state plan to attract investments in transport infrastructure.
DHL’s new investment will spans all four of its divisions—DHL Express, DHL Global Forwarding, DHL Supply Chain, and DHL eCommerce—and will enhance infrastructure, expand networks and capacity, and elevate service capabilities. The company’s divisions provide an array of services to customers in the Middle East, including express parcel delivery, air, ocean and overland freight, warehousing, fulfilment and distribution, customs brokerage and specialized operations for sectors such as life sciences, healthcare, e-commerce and battery logistics.
According to DHL, 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. 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.
“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.”
