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

DHL has been expanding its Middle East presence in conjunction with the region’s economic development. The next evolution is a nearly $600M investment in facilities, equipment and technology in Saudi Arabia and the UAE over five years. The post DHL steps up Middle East expansion with $570M in planned investments appeared first on FreightWaves.

Jun 12, 2025 - 16:00

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 there.

In 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.”

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