DHL Group is to invest more than €500 million in the Middle East, focussing on Saudi Arabia and the United Arab Emirates (UAE).
The investment spans all four DHL divisions – DHL Express, DHL Global Forwarding, DHL Supply Chain, and DHL eCommerce – and will strengthen logistics operations in the region. DHL already provides a broad portfolio of services 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.
It says the region is emerging as a trade hub, and is not only due to attracting investments from multinationals but also from Gulf- and Middle East-based businesses growing and increasing their exports.
DHL Group recognizes 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 e-commerce.
DHL will invest in hub and gateway facilities, its fleet – including electric trucks – and pursue joint venture initiatives such as the recent joint venture with Etihad Rail.
It will also expand its contract logistics offering in the UAE and Saudi with more warehouse capacity, upgradedg equipment and advanced technology.
The acquisition of the delivery provider AJEX in Saudi Arabia will meanwhile enhance DHL’s e-commerce capabilities.