DHL Group announced plans today [11 June 2025] to invest €500 million (c. £423 million) in the Middle East before the end of the decade, as part of expansion plans set out in its ‘Strategy 2030’, which launched in 2024.
The investment is focused on two ‘rapidly expanding Gulf markets’ identified by DHL – Saudi Arabia and the United Arab Emirates. It spans all four DHL divisions – DHL Express, DHL Supply Chain, DHL Global Forwarding and DHL eCommerce – and, according to DHL, will ‘significantly strengthen the region’s logistics backbone’.
Each division is set to benefit in different ways. 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’.
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.”
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DHL Supply Chain will see an expansion of the contract logistics offering in both the UAE and Saudi Arabia, which includes ‘increasing warehousing capacity, upgrading equipment and integrating advanced technology to optimise operations’.
Hendrik Venter, CEO of DHL Supply Chain for Europe, the Middle East and 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 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.”
DHL Global Forwarding will ‘expand its overall presence in the region, invest in its fleet – including electric trucks – and pursue joint venture initiatives such as the recent joint venture with Etihad Rail to enhance connectivity and logistics capabilities’.
Amadou Diallo, CEO of DHL Global Forwarding for the Middle East and 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 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.”
Finally, the acquisition of delivery provider AJEX in Saudi Arabia, DHL says, will ‘enhance DHL’s e-commerce capabilities, facilitating better last-mile delivery services in a rapidly growing market’.
Through investment in ‘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’.
DHL has also reiterated its commitment to sustainability in the region, taking action such as investing in: electric delivery vehicles; alternative fuels for road, air and ocean freight; and solar energy and clean power for its facilities. It says this commitment is ‘aligned with the agenda of governments in the region to lead on environmental sustainability’.
DHL Group has set a target of reducing its greenhouse gas (GHG) emissions from 40 million metric tonnes of CO2 equivalent (Co2e) to under 29 million by 2030, and a longer-term goal of achieving net zero GHG emissions by 2050. This target was approved by the Science-Based Targets initiative (SBTi) in July 2024.
With the first-ever Supply Chain Excellence Awards MEA proving to be a roaring success, click here for the full list of 2025 winners! The Supply Chain Excellence Awards MEA will return to the Rosewood Abu Dhabi on 11 May 2026, so keep an eye out on the Logistics Manager website for entries opening for next year’s awards!
