Deutsche Post Boosts Mideast Investments to Sustain GrowthDeena Kamel Yousef
Deutsche Post AG’s DHL Express parcel delivery subsidiary said it is bolstering investment in the Middle East to support a region that is among its fastest growing, spurred by demand from Egypt and Iraq.
The unit of the Bonn-based company is spending 100 million dirham ($27 million) to expand its ground operations in Dubai, along with additional investments at the Dubai International Airport, in Abu Dhabi, in Saudi Arabia and in Cairo, for a total sum of about $341 million, it said today.
“Business is developing not dropping, people need the service more when communications are cut off, and they need more tools to reach people,” Nour Suliman, the chief executive officer of DHL Express in the Middle East, said today in Dubai. “Egypt is doing fantastic. Iraq had zero infrastructure after the war and now companies are going there to rebuild.”
DHL Express has 261 service centers in 19 countries across the Middle East. It continues to operate in politically unstable areas including Syria, Iraq and Libya and is targeting a growth rate of 20 percent in the region, according to Suliman.
The revenue contribution from the Middle East came under pressure in the last year after the U.S. military, a “big chunk of business” for DHL, starts withdrawing from the region, according to the company.
“Despite the unrest and civil war, we still invest in the Middle East,” Suliman said. “This is the best time to invest when things go wrong because things will get better,”