DHL extends reach with Dh 1bn (USD 272 million) investment in the Middle East
DHL Exel Supply Chain, part of DHL logistics, is to invest about Dh1 billion (USD 272 million) this year in expansion projects for its business in the Middle East.
The investments will be carried out mainly in the UAE and Saudi Arabia to tap the growing demand for logistics services triggered by the booming trade in the two regional heavyweights.
The influx of capital into the sector is expected to boost the company’s standing as the number one supply chain operator in the region and help DHL meet its 40 per cent growth target for 2008 and 2009.
“DHL Exel is greatly focusing on the Middle East as one of the top three emerging markets after China and India. There is great potential for logistics services in the entire region, which calls for further investments in the logistics sector,” David Christmas, Middle East Managing Director for DHL Exel, told Emirates Business.
DHL Exel Supply Chain has been growing at an average of 35 per cent annually in the past three years and according to Christmas, the same level of growth is expected in the next five years.
DHL Exel operates in 16 countries in the Middle East but the largest share of its operations are in Saudi Arabia, where it foresees huge growth potential of the market. With 120 facilities across the region and 10,000 staff, DHL Exel is currently ranked number one in the region, with 10 per cent of the market, which is shared with several other players.
The company has four road hubs and two air hubs in the region, a fleet of 2,000 vehicles and 17 aircraft operated from Bahrain air hub to serve the GCC market and link it with East Asia and Europe. 1 AED = 0.272346 USD
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