DHL Global Forwarding Plans Expansion in Eastern UAE Near Khor Fakkan and Fujairah

Tobias Maier, who runs the Middle East and Africa business of the freight arm of Germany's DHL Group, told The National in an interview that the company was looking at its position in the east of the country and "will continue to invest here". He did not give details of the size or timing of any new investment.

The location matters because UAE authorities plan to expand port capacity on the east coast so that shipping can bypass the Strait of Hormuz, where tensions remain high. For a forwarder moving cargo into and out of the Gulf, a stronger presence on the Gulf of Oman side gives it options if the strait stays disrupted.

Maier said the conflict had not altered DHL's €500 million ($557.5 million) commitment to the Gulf, a pledge first made last year. It was followed by announcements of new DHL facilities in the UAE and Saudi Arabia worth €120 million and €130 million respectively. "Our plans didn't change, especially for the GCC," he said, adding that the UAE would keep an essential role in the industry as the government develops alternative shipping routes.

He described the operating conditions forwarders now face. Cargo that cannot reach Gulf ports is sometimes discharged in India or Sri Lanka, and recovering it adds cost. Shipping capacity is short, more handlers touch each consignment, vessels wait longer, and some loads need extra sea legs or overland trucking. Higher fuel prices tied to the conflict have had what he called a significant impact, and he described elevated freight rates as normal for the current market.

Even so, Maier said conditions had steadied after an initial spike. "Everybody knows the routes, so as long as no new shocks and disruptions happen, I think we can handle it," he said. He expects the logistics industry to take three to six months to return to normal once the conflict ends.

DHL Global Forwarding has also signed a 20-year partnership with Etihad Rail, the developer and operator of the UAE's national rail network, to set up a joint venture aimed at strengthening the country's freight network.