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DHL steps up Middle East expansion with $570M in planned investments
DHL steps up Middle East expansion with $570M in planned investments

Yahoo

time2 days ago

  • Business
  • Yahoo

DHL steps up Middle East expansion with $570M in planned investments

Global logistics and parcel powerhouse DHL Group will invest more than $571 million on infrastructure, vehicles and product offerings in Gulf Arab states through 2030 , pushing for more business in a region experiencing significant trade growth, the company announced Wednesday. DHL Group, based in Bonn, Germany, said the investment, which aims to increase capacity and network efficiency, spans its express delivery, freight forwarding, contract logistics and e-commerce units in Saudi Arabia and the United Arab Emirates. DHL Express will invest in hub and local facilities, as well as enhance airfreight service to improve service efficiency and delivery speed in the Gulf countries. DHL Global Forwarding plans to add diesel and electric trucks, open more offices and pursue joint ventures, such as the recent partnership with Etihad Rail to enhance cross-border cargo connectivity. DHL Supply Chain will expand warehousing, upgrade equipment and integrate advanced technology to improve operations in Saudi Arabia and the UAE. Some of DHL's investment in the region began in 2024. And, earlier this year, DHL eCommerce acquired a minority stake in Saudi Arabian parcel carrier Ajex Logistics Services, giving it a foothold in the fast-growing, last-mile delivery sector April, DHL Group said it planned to invest $2.2 billion in healthcare logistics over five years. The healthcare and Middle East investments are part of DHL's strategic plan to concentrate investments in sectors and markets with high-growth potential. Multinational companies are expanding operations in the Gulf region as oil-rich states diversify their economies, which is also resulting in rising exports from local businesses. DHL Group said it sees growth opportunities in the energy sector – both traditional oil and gas as well as renewables and electrification – life sciences and healthcare, and e-commerce. It noted that Saudi Arabia is experiencing a strong inbound market for business-to-consumer shipments, especially high-end goods, driven by ongoing tourism initiatives and events. '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.' Click here for more FreightWaves/American Shipper stories by Eric eCommerce expands operations to Saudi Arabia Express logistics providers bet big on healthcare business DHL eCommerce to merge with UK courier Evri The post DHL steps up Middle East expansion with $570M in planned investments appeared first on FreightWaves. Sign in to access your portfolio

DHL plans $575mn investment in Middle East, the ‘hub of global trade'
DHL plans $575mn investment in Middle East, the ‘hub of global trade'

Arabian Business

time3 days ago

  • Business
  • Arabian Business

DHL plans $575mn investment in Middle East, the ‘hub of global trade'

DHL Group, a global logistics powerhouse, plans to invest more than EUR500 million (US$575 million) in the rapidly expanding markets of the Middle East, with a strategic focus on Saudi Arabia (KSA) and the United Arab Emirates (UAE). This investment will be made until the end of 2030, underscoring DHL's commitment to the region and its importance for the future of global trade. It's part of DHL Group's Strategy 2030, launched in 2024, and prioritises growth regions and geographic tailwinds generated by shifts in global trade. John Pearson, CEO of DHL Express, commented: 'The region of the Gulf Cooperation Council (GCC) is rapidly emerging as a global logistics and innovation hub. '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 strengthens Middle East supply chains The investment spans all four DHL divisions – DHL Express, DHL Global Forwarding, DHL Supply Chain, and DHL eCommerce. It will significantly strengthen the region's logistics backbone by enhancing infrastructure, expanding networks and capacity, and elevating service capabilities. 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. 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 Middle East-based businesses are growing and increasing their exports. Hendrik Venter, CEO of DHL Supply Chain, Europe, Middle East & Africa, added: 'DHL Supply Chain has actively expanded in Saudi Arabia and the UAE in recent years, recognising the positive economic development, the increasing maturity and sophistication of supply chain operations in the region and the growing demand for specialised, 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.' For DHL Express, investments will be made in hub and gateway facilities, as well as enhancing aviation capacity to improve service efficiency and delivery speed. For DHL Global Forwarding, the company will expand its overall presence in the region, invest in its fleet – including electric trucks – and pursue joint venture initiatives such as the recent JV with Etihad Rail to enhance connectivity. DHL Supply Chain will expand it contract logistics offering in both the UAE and KSA, which includes increasing warehousing capacity, upgrading equipment, and integrating advanced technology to optimise operations. 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. 'We also consistently aim to find entrepreneurial freight forwarding solutions that build supply chain resilience, keep their goods flowing and help them to uncover growth opportunities in a world that is characterised by uncertainty and volatility. By expanding our operations, we will be even better positioned to support our clients in navigating the complexities of international trade and logistics.' The Group added that it 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. The company 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. This commitment ensures that supply chains become more sustainable, and customers achieve their net zero ambitions.

Morning Brief Podcast: Corner Office Conversation with John Pearson, CEO, DHL Express
Morning Brief Podcast: Corner Office Conversation with John Pearson, CEO, DHL Express

Economic Times

time3 days ago

  • Business
  • Economic Times

Morning Brief Podcast: Corner Office Conversation with John Pearson, CEO, DHL Express

Morning Brief Podcast (ET Online) Corner Office Conversation with John Pearson, CEO, DHL Express Anirban Chowdhury and Forum Gandhi | 18:06 Min | June 12, 2025, 6:48 AM IST LISTEN 18:06 LISTENING... DHL Express, has made a strategic turnaround in the last 15 years to become a key revenue driver for the DHL Group. At the helm is its CEO John Pearson, a 40 year veteran at the logistics behemoth. But as geopolitical forces give new directions to global trade, DHL must find new anchors. In this Corner Office Conversation Pearson talks to Anirban Chowdhury, who joins him at DHL's Dubai facility, and ET's Forum Gandhi about how he and his company are navigating the shifting sands, air and waters of global trade and how India is playing a critical role in its recalibrated in

DHL group to invest more than €500 million in Middle East
DHL group to invest more than €500 million in Middle East

Khaleej Times

time3 days ago

  • Business
  • Khaleej Times

DHL group to invest more than €500 million in Middle East

DHL Group, the world's leading logistics provider, has announced plans to invest more than €500 million in the Middle East, with a strategic focus on the rapidly expanding Gulf markets of Saudi Arabia and the UAE. This investment is set to take place between 2024 and 2030. DHL Group's Strategy 2030, launched in 2024, 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 – and will significantly strengthen the region's logistics backbone. 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 specialized operations for sectors such as life sciences, healthcare, e-commerce and battery logistics. '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.' 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. Hendrik Venter, CEO of DHL Supply Chain, Europe, Middle East & Africa, added, 'DHL Supply Chain has actively expanded in Saudi Arabia and UAE in recent years, recognising 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.' Amadou Diallo, CEO of DHL Global Forwarding, Middle East & Africa, said: '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. We also consistently aim to find entrepreneurial freight forwarding solutions that build supply chain resilience, keep their goods flowing and help them to uncover growth opportunities in a world that is characterized by uncertainty and volatility. By expanding our operations, we will be even better positioned to support our clients in navigating the complexities of international trade and logistics.' DHL Group 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, Saudi Arabia is experiencing a strong inbound market for B2C, especially with high-end goods, driven by ongoing tourism initiatives and events.

DHL to invest over EUR500m in Middle East growth markets by 2030
DHL to invest over EUR500m in Middle East growth markets by 2030

Gulf Business

time3 days ago

  • Business
  • Gulf Business

DHL to invest over EUR500m in Middle East growth markets by 2030

Image: Supplied DHL Group has said it will invest more than EUR500m ($540m) in the Middle East through 2030, with a strategic focus on the rapidly expanding economies of the UAE and Saudi Arabia. The investment will span all four business divisions — DHL Express, DHL Global Forwarding, DHL Supply Chain, and DHL eCommerce — and is aimed at strengthening logistics infrastructure, expanding capacity, and improving service capabilities across the region. The commitment forms part of the group's broader Strategy 2030, launched last year, which prioritises growth markets amid shifting global trade patterns. 'The Gulf Cooperation Council 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, and our commitment to supporting its transformation into a global trade catalyst.' Support for trade, supply chain resilience and e-commerce growth DHL Group said the new investment will improve services such as express parcel delivery, freight forwarding, warehousing and fulfillment, customs brokerage, and sector-specific logistics for life sciences, healthcare, e-commerce, and energy. 'DHL Supply Chain has actively expanded in Saudi Arabia and the UAE in recent years, recognising the region's growing logistics maturity and demand for sophisticated, outsourced supply chain solutions,' said Amadou Diallo, CEO of DHL Global Forwarding, Middle East & Africa, added: 'This investment reinforces our confidence in the region's economic trajectory. Our goal is to stay ahead in digital capabilities and sustainable transportation, helping customers build resilience and unlock growth in an uncertain world.' Key focus areas for investment DHL outlined several strategic initiatives under its EUR500m regional investment plan: DHL Express will invest in hub and gateway facilities and expand aviation capacity to enhance delivery speed and network efficiency. DHL Global Forwarding will grow its regional presence, expand its fleet — including electric trucks — and pursue joint ventures, including one with Etihad Rail, to enhance multimodal connectivity. DHL Supply Chain will increase warehouse capacity, modernize equipment, and integrate automation and advanced technologies in Saudi Arabia and UAE. DHL eCommerce will boost its last-mile delivery capabilities, supported by its recent acquisition of AJEX in Saudi Arabia, to meet surging e-commerce demand. Backing regional sustainability agendas Aligned with sustainability goals in the UAE and the kingdom, DHL Group said it will allocate a portion of the investment toward green logistics. This includes alternative fuels, electric vehicles, sustainable aviation fuels, and solar-powered logistics facilities. The company aims to help customers meet net-zero emissions targets while ensuring supply chains are future-proofed. The investment also aims to support tourism-related logistics, particularly in Saudi Arabia, where high-end B2C inbound demand is accelerating due to the kingdom's Vision 2030 strategy and global event hosting ambitions.

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