DHL expects more Indian companies to establish manufacturing operations in the UAE, creating fresh opportunities for cross-border freight, express delivery and supply chain services as the country strengthens its position as a regional trade hub.
Tobias Maier, DHL’s CEO for the Middle East and Africa, said investments from Indian companies, particularly in advanced manufacturing, are expected to increase following the India-UAE Comprehensive Economic Partnership Agreement (CEPA). He noted that the UAE’s network of CEPA agreements provides access to around 25% of the global population, making it an increasingly attractive destination for foreign investment.
Meanwhile, DHL is expanding its regional logistics network and exploring alternative transport corridors to address supply chain disruptions caused by the West Asia conflict. The initial disruption grounded flights for seven to 10 days and left shipments stranded across India, China and Europe. Clearing the resulting air freight backlog took around six weeks, while recovering containers stranded at ports in India, Sri Lanka, Kenya and Europe took several months.
Higher costs associated with rerouting, port handling, storage, feeder services and trucking, coupled with rising fuel prices, have pushed freight rates upwards. DHL Express restored alternative operations within approximately 48 hours by routing shipments through its hubs in Oman and Saudi Arabia.
The company is also exploring overland corridors connecting Europe through Turkey, Syria, Jordan and Saudi Arabia to improve supply chain resilience. DHL cautioned that even if the conflict ends and shipping routes reopen, global supply chains could take three to six months to normalise due to continuing container shortages and port congestion.
Against this backdrop, DHL has committed €500 million in investments across the Middle East between 2024 and 2030, with a strategic focus on the rapidly growing markets of Saudi Arabia and the UAE.