DHL invests 500 million euros: the Middle East becomes logistics hotspot!

DHL invests 500 million euros: the Middle East becomes logistics hotspot!

Limburg an der Lahn, Deutschland - An exciting chapter in the Middle East takes shape! The DHL Group has announced that it will invest more than 500 million euros in the region, with a clear focus on the emerging markets of Saudi Arabia and the United Arab Emirates. These investments are planned between 2024 and 2030 and extend across all four business areas of the company: Express, Global Forwarding, Supply Chain and E-Commerce. Airliners reports that DHL wants to strengthen the region as a strategic trade center.

What is on the plan? The expansion of hub and gateway facilities as well as an ongoing expansion of the fleet are planned, into which electrical trucks are also to be integrated. The storage capacities are also increased in order to meet the increasing requirements in e-commerce. John Pearson, CEO of DHL Express, sees the Golf region an "emerging global logistics and innovation center" that offers an excellent starting basis.

a promising market

Not only DHL recognized this opportunity! The market for e-commerce logistics in Saudi Arabia will be created in the next few years and, according to a study by Mordor Intelligence Year 2024 at $ 3.32 billion in 2029. This means that an annual growth rate of 10.94% can be recorded. The total turnover of electronic trade in Saudi Arabia is expected to be a proud 49 billion SAR (about $ 13.07 billion) by 2025.

Internet penetration in the region is impressively high; Over 99% in countries such as Bahrain, Kuwait, Qatar, Saudi Arabia and the VAE. Such numbers illustrate the massive change that e-commerce brings in the region. In addition, the number of registered e-commerce companies in Saudi Arabia has increased to 36,330 in the third quarter of 2023-a considerable annual increase of 12%!

innovations and partnerships

DHL is not only on this aspiring market. Partnerships, such as those with Aramco in February 2024, show that the great demand for consumer solutions brings together more and more companies. The region's e-commerce companies are increasingly implementing user-friendly functions and developing their services in order to meet the increasing requirements of customers. A market analysis shows that the demand for consumer electronics, such as smartphones and smart home devices, increases exponentially.

With these enormous investments and continuing development in the e-commerce sector, the region is well on the way to establishing itself as a significant logistical center. DHL is ready to do good business in Saudi Arabia and the VAE and thus revolutionize the trade currents in the region. The future is promising and the path is paved for innovative solutions that will further improve the quality of life and access to services in the region. n-tv estimates that the efficiency of the supply chains will also be optimized for everyone!