Middle East at the Heart of Global Logistics Shift

Amadou Diallo, CEO, Middle East & Africa, DHL Global Forwarding says, the Middle East will soon become the new global logistics hub. He adds, driven by investments, regional integration, and energy diversification, the region is taking centrestage in global trade, especially as China changes its supply chains to include MEA in new logistics map.

-Dr Shehara Fernando

From the heart of the GCC—the Kingdom of Saudi Arabia, UAE and Qatar—to the Levant and North Africa, the Middle East region is undergoing a transformative economic shift. Powered by sovereign wealth fund-driven investments and long-term national visions, the region is positioning itself as a stable, strategic, and investor-friendly logistics powerhouse.

“This region is very well structured. It is a safe place to invest—tax-efficient, business-ready, and politically stable. Investors from the USA, Europe, Asia, and China are increasingly drawn to what the Middle East offers,” revealed Amadou Diallo, CEO, Middle East & Africa, DHL Global Forwarding.

Energy, infra take lead

Since Europe is looking for alternatives to Russian energy, the importance of the Gulf has surged. The UAE, KSA and Qatar have responded to the demand by expanding LNG supply and boosting the local manufacturing in line with Vision 2030.

The logistics landscape is evolving fast. The Kingdom is diversifying its trade routes through inland free zones in Riyadh and new port developments such as King Salman and Shazan. Similarly, Iraq is investing in a 1,000-kilometre road and railway project connecting Basra to Europe in order to enhance trade movement and regional integration.

“These infra projects are designed to divert cargo flow directly to KSA, easing dependency on single-entry points,” Diallo explained.

Emerging gateways

The UAE has become a beacon for data, technology and logistics. Since Covid-19, Abu Dhabi has seen consistent investments in Artificial Intelligence, digital infrastructure and data centres. The UAE and KSA are no longer transit points, they are becoming links in the manufacturing and supply chain ecosystems.

“There are 21,000 new African businesses set up in the UAE, drawn by ease of travel, safety, and a supportive business environment,” Diallo said. “And the bridge between Egypt and the Kingdom is a literal and symbolic connection between two high-potential regions.”

Africa-Gulf synergy

Connectivity between Africa and the Gulf is deepening. A planned connection between Egypt’s Sharm El-Sheikh and KSA’s NEOM reflects the growing synergy. With 1.4 billion people in Africa and another 700 million across the broader the Middle East and Africa (MEA) region, the potential of the market is vast.

“It is increasingly easy for African entrepreneurs to do business here. This region is becoming their springboard to the world,” Diallo observed.

China’s strategy shifts

China’s global supply chain strategy has evolved significantly. What began as “China Plus One”—outsourcing to Vietnam, Bangladesh, and Cambodia—has now matured into “China Plus X,” where Chinese businesses can invest in sector-specific global locations.