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DHL Global Forwarding to Expand Network in Eastern UAE Amid Regional Uncertainty

DHL Global Forwarding plans to strengthen its logistics presence in the eastern UAE, focusing on areas near Khor Fakkan, Dibba, and Fujairah. The freight arm of Germany's DHL Group confirmed its €500 million ($557.5 million) Gulf investment commitment remains unchanged. The move aligns with regional efforts to maintain operational agility and utilize eastern ports outside the Strait of Hormuz.

Illustration: A modern commercial container terminal at a deep-water seaport along a rugged desert coastline during daytime, showing cargo containers
Illustration

DHL Global Forwarding aims to expand its operations in the eastern United Arab Emirates, specifically targeting locations near Khor Fakkan, Dibba, and Fujairah, regional chief executive Tobias Maier told The National. The move is designed to support operational agility amid ongoing regional geopolitical tensions.

The logistics provider affirmed that current geopolitical uncertainties will not alter its €500 million ($557.5 million) investment program committed to the Gulf region. That investment plan, originally unveiled last year, included the announcement of facility launches in the UAE and Saudi Arabia valued at €120 million and €130 million, respectively.

Maier confirmed that the company is actively working to reinforce its footprint on the UAE's east coast, noting that DHL will continue investing in the area. The strategy coincides with plans by UAE authorities to expand port capacity in eastern coastal areas, enabling shipping operators to bypass the Strait of Hormuz.

Operational expenses across the freight sector have risen significantly due to higher freight rates, increased fuel expenses, and cargo diversions through alternative ports. To further bolster domestic multimodal links, DHL Global Forwarding previously established a 20-year joint venture partnership with Etihad Rail to expand rail freight connectivity across the UAE.

Sources

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