DHL Global Forwarding Middle East and Africa is looking to strengthen its presence in the eastern UAE as part of its strategy to maintain flexible operations amid ongoing uncertainty surrounding the Iran conflict, according to its chief executive.

Tobias Maier told the geopolitical situation has not affected DHL Group’s planned €500 million ($557.5 million) investment in the Gulf. Announced last year, the commitment has already been followed by plans for new DHL facilities worth €120 million in the UAE and €130 million in Saudi Arabia.

The company is now exploring opportunities to expand its operations closer to Khor Fakkan and Dibba in Fujairah, further strengthening its logistics network in the eastern region. Maier confirmed that investment plans across the Gulf Cooperation Council (GCC) remain unchanged.

The UAE is also working to develop alternative shipping routes and expand port infrastructure in the eastern regions to reduce reliance on the Strait of Hormuz amid heightened regional tensions. Maier believes these developments will reinforce the country’s importance as a regional logistics hub.

He expects the logistics sector could require three to six months to return to normal once the conflict ends. However, he said companies have adapted to the changing circumstances and can manage current operations as long as no further disruptions occur.

The conflict has also driven up freight costs due to limited shipping capacity, longer waiting periods and the need to use alternative ports. Some cargo originally destined for Gulf markets has been redirected to India and Sri Lanka, resulting in additional handling, transportation and rerouting expenses.

Maier also highlighted rising fuel prices as a significant factor affecting logistics costs, although the impact varies depending on the mode of transportation and global energy market movements.

Despite these challenges, he noted that the industry has stabilised following the initial disruption and expects conditions to improve as trade routes and operations gradually return to normal.

Separately, DHL Global Forwarding has entered into a 20-year partnership with Etihad Rail to establish a joint venture, supporting the UAE’s efforts to strengthen its national freight and multimodal transportation network.