DHL Sees More Indian Firms Setting Up in UAE
DHL expects growing Indian manufacturing investment in the UAE as logistics networks are rerouted after West Asia conflict disruptions.
Updated on Nov. 5, 2026 in Transportation
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DHL expects more Indian companies to set up manufacturing operations in the UAE, a country it says gives access to around 25% of the world's population through CEPA agreements. The company's comments follow disruptions to flights and shipments tied to the West Asia conflict that began February 28, 2026.
Why it matters
Disrupted supply chains and higher freight costs have pushed companies toward alternative routing and shipping modes. Investment decisions in the region are being shaped by how resilient logistics networks prove to be.
DHL Express shifted operations to hubs in Oman and Saudi Arabia within approximately 48 hours, and the air freight backlog took around six weeks to clear. Fuel accounts for roughly one-third of logistics costs, while full supply chain normalisation is estimated at three to six months and remains unconfirmed.
The players
DHL
DHL is a global logistics company whose express division operates a network of hubs and transport routes across the Middle East and beyond.
The details
DHL reconfigured its operations using hubs in Oman and Saudi Arabia after the disruption, with shipments moving through its network again by March 2. Some businesses shifted urgent cargo to air, express and road freight as sea freight slowed, and the company is exploring road corridors from Europe through Turkey, Syria, Jordan and Saudi Arabia.
Timeline
February 28, 2026: War began and disrupted flights and shipments.
March 2, 2026: Shipments began moving through the DHL network again.
2024 to 2030: DHL's planned €500 million investment period in the Middle East.
Market Landscape
The UAE's CEPA agreements give manufacturers access to roughly a quarter of the world's population, which is the core draw behind the Indian investment DHL describes. The conflict-driven rerouting of shipments through Oman and Saudi Arabia shows how regional logistics hubs are becoming central to that trade access.
Businesses shipping to or from the Gulf should expect longer lead times and higher freight costs while supply chains recover, which DHL estimates could take three to six months. Companies weighing urgent cargo options may find air, express and road freight more reliable than sea freight during this period.
The takeaway
Logistics resilience is becoming a deciding factor in where manufacturers choose to invest. Companies planning Gulf operations should build flexible routing options now, since the recovery timeline remains uncertain.
Further reading
For more on how shipping and freight networks are adapting, see Transportation.
Source note: This article includes information reported by MoneyControl.
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