According to fDi Intelligence’s latest foreign direct investment (FDI) data, Dubai’s DP World has invested more than $10bn (Dhs37.3bn) in the global logistics sector since 2012, placing it among the top five overseas investors in this area. The state-owned ports operator ranked fifth in the world in 2022 by the total value of direct investments allocated to the overseas logistics services sector. The only company in the top five based outside of the US and Europe, DP World’s investments in 2022 totalled $320m despite a fall in demand for logistics services due to a slowing global economy, supply chain crunch, and geopolitical tensions. In 2023, the global logistics industry is expected to record single-digit growth.
DP World’s global investments are diverse, with the company prioritizing the broadening of its partnerships to unlock global trade opportunities. DP World has enhanced its relationship with India’s National Infrastructure Investment Fund to raise as much as $300m and created a new investment platform with the British development finance agency CDC Group to drive investment in Africa. DP World expects about $1.7bn in capital expenditure this year to be invested in the UAE, Jeddah, London Gateway, Dakar, the Democratic Republic of the Congo’s Banana port, Peru’s Callao, and DPW Logistics in South Africa. The company and the Somaliland government opened the new Berbera Economic Zone, which, along with Berbera Port, is expected to develop the area into a major trade hub serving the Horn of Africa. The UK has been a key destination for investments, with DP World investing $2.4bn in the country over the past decade, supporting thousands of jobs. The logistics major has earmarked a further $1.2bn of investment in the UK over the next decade.
DP World’s annual revenues surged by nearly 60 per cent to Dhs62.9bn in 2022 from Dhs23.3bn a year earlier, driven by acquisitions and the solid performance of its ports and terminals and marine services. Sultan Ahmed Bin Sulayem, group chairman and CEO of DP World, said, “The data shared by fDi Intelligence demonstrates where we stand globally within the logistics sector, not only in the last year but consistently over the last 10 years. Investing in developing economies helps trade go further, facilitates economic growth, attracts foreign investment and generates thousands of jobs—raising the quality of life for everyone.