DHL heralds major investment into Middle East operations

Earlier this week, global express delivery and logistics services provider DHL Group announced its plans to invest more than $500 million EUR ($577.9 million USD) in the Middle East, with a strategic focus on the Gulf markets of Saudi Arabia and the United Arab Emirates, with the total investment occurring between 2024-2030.

The company explained that this investment comprises its major divisions—DHL Express, DHL Global Forwarding, DHL Supply Chain, and DHL eCommerce, in various ways, including enhancing infrastructure, expanding networks and capacity, and elevating service capabilities, too. And it added that these divisions collectively provide various services for shippers in the Middle East, including express parcel delivery, air, ocean and overland freight, warehousing, fulfillment and distribution, customs brokerage, and specialized operations for various sectors, including life sciences, healthcare, e-commerce, and battery logistics.

“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.”

A DHL spokesman provided LM with a detailed overview of the company’s Middle East investment in the Q&A below.

LM: What drove the need for this investment? How long had it been planned/in the works?

DHL: DHL Group’s decision to invest more than EUR 500 million in the Middle East was driven by the region’s growing strategic importance in global trade. The Gulf Cooperation Council (GCC) countries, particularly the United Arab Emirates and Saudi Arabia, are rapidly emerging as global logistics and innovation hubs. Their geographic position between Asia, Europe, and Africa makes them vital corridors for international trade. In addition to this, both countries are undergoing significant economic transformation, supported by national strategies such as Saudi Arabia’s Vision 2030 and the UAE’s “We the UAE 2031” agenda, which aims to position the country as a global hub for the new economy.

This investment is part of DHL’s broader Strategy 2030, launched in 2024. The strategy focuses on capitalizing on geographic tailwinds, advancing digitalization, and driving sustainability. The planning for this investment has been in development as part of this long-term strategic framework, and it reflects DHL’s confidence in the region’s economic trajectory and its potential to serve as a catalyst for regional and global trade.

LM: What are the main benefits of this investment for shippers, i.e., DHL customers?

DHL: The GCC region’s strategic location at the crossroads of Asia, Europe, and Africa, as well as its attractiveness as a FDI destination for multinational businesses (including many US-headquartered companies in sectors such as energy, automotive and tech), positions it as a vital hub for global trade. DHL’s investment in the Middle East brings substantial advantages to its customers by expanding infrastructure, increasing capacity, and enhancing service capabilities. These developments not only help regional businesses adapt to rising demand and evolving market conditions but also support international companies looking to establish a presence in the region.

The investment also supports the development of more resilient and future-ready supply chains. DHL is integrating advanced digital platforms, automation, and AI technologies that provide customers with greater visibility, predictive analytics, and operational efficiency. Furthermore, the company is committed to sustainability, with initiatives such as electric vehicle fleets, sustainable aviation fuel, and solar-powered facilities. These efforts help customers reduce their carbon footprint and align with their own environmental goals.

In addition, DHL is tailoring its services to meet the needs of high-growth sectors such as e-commerce, life sciences, healthcare, energy, and technology. This includes specialized logistics solutions, temperature-controlled transport, and last-mile delivery enhancements. Overall, the investment empowers DHL’s customers to scale their operations, enter new markets, and compete more effectively on a global scale.

LM: How many employees and locations does DHL have in the Middle East?

DHL: DHL Group has a long-standing and substantial presence in the Middle East, with operations spanning more than 48 years across the region. The company employs over 6,600 people and operates more than 250 service points. DHL’s logistics network in the region includes a fleet of over 1,800 vehicles, and it handles approximately 22 million time-definite shipments annually. In terms of freight, DHL moves around 94,300 TEUs (twenty-foot equivalent units) of ocean freight and 78,676 tons of air freight per year.

This extensive footprint reflects DHL’s role as the leading international logistics provider in the Middle East. The company continues to expand its presence through strategic partnerships and infrastructure investments, including joint ventures such as Rail Direct with Etihad Rail and AJEX in Saudi Arabia. These initiatives support DHL’s commitment to enhancing connectivity, supporting economic diversification, and delivering world-class logistics solutions across the region.

LM:  What are the company's next steps, or future plans, in the Middle East going forward?

DHL: Looking ahead, DHL has outlined a comprehensive set of plans to further strengthen its presence and capabilities in the Middle East. The company will continue to expand its infrastructure, including logistics hubs, warehousing, and multimodal transport assets. This includes investments in electric vehicles, sustainable fuels, and partnerships such as the joint venture with Etihad Rail, which enhances inland connectivity and reduces reliance on road transport.

DHL is also placing a strong emphasis on innovation. The new Innovation Center in Dubai will play a central role in shaping the future of logistics in the region. It will focus on areas such as artificial intelligence, robotics, the Internet of Things (IoT), and sustainability. The center will serve as a platform for collaboration with customers, startups, and academic institutions to develop and scale new technologies tailored to the needs of the Middle East and Africa.

In addition to infrastructure and innovation, DHL is committed to supporting the region’s economic diversification. The company is investing in logistics solutions for sectors such as healthcare, renewable energy, and e-commerce. 

Overall, DHL’s future plans are focused on enabling trade, supporting customer growth, and laying the foundation for a more sustainable and resilient logistics ecosystem in the Middle East and beyond.