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DHL invests 500 million euros: the Middle East becomes a logistics hotspot!
DHL is investing €500 million in the Middle East, with a focus on Saudi Arabia and the UAE by 2030 to strengthen logistics.
DHL invests 500 million euros: the Middle East becomes a logistics hotspot!
An exciting chapter in the Middle East is taking shape! 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 span all four of the company's business areas: Express, Global Forwarding, Supply Chain and E-Commerce. Airliners reports that DHL wants to use this step to strengthen the region as a strategic trading center.
What's on the agenda? The plan is to expand hub and gateway facilities as well as a continuous expansion of the fleet, into which electric trucks will also be integrated. Storage capacities are also being increased to meet the increasing demands in e-commerce. John Pearson, CEO of DHL Express, sees the Gulf region as an “emerging global logistics and innovation hub” that offers an excellent base.
A promising market
Not only DHL has recognized this opportunity! The e-commerce logistics market in Saudi Arabia will emerge in the next few years and according to a study by Mordor Intelligence The market size will grow from USD 2.02 billion in 2024 to USD 3.32 billion in 2029. This means an annual growth rate of 10.94% can be recorded. Total e-commerce sales in Saudi Arabia are expected to reach a whopping SAR 49 billion (approximately $13.07 billion) by 2025.
Internet penetration in the region is also impressively high; over 99% in countries such as Bahrain, Kuwait, Qatar, Saudi Arabia and the UAE. Such numbers illustrate the massive change that e-commerce is bringing to the region. In addition, the number of registered e-commerce companies in Saudi Arabia increased to 36,330 in the third quarter of 2023 - a significant annual increase of 12%!
Innovations and partnerships
DHL is not alone in this emerging market. Partnerships like the one with Aramco in February 2024 show that the high demand for consumer solutions is bringing more and more companies together. The region's e-commerce firms are increasingly implementing user-friendly features and evolving their services to meet increasing customer demands. A market analysis shows that the demand for consumer electronics, such as smartphones and smart home devices, is increasing exponentially.
With these huge investments and continued development in the e-commerce sector, the region is well on its way to establishing itself as a major logistics hub. DHL is getting ready to make a killing in Saudi Arabia and the UAE, revolutionizing trade flows in the region. The future is bright 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 these steps will also optimize supply chain efficiency - a win for everyone involved!