On the way to becoming the next major logistics hub

The opening of Saudi Arabia is influencing the flow of goods in the Middle East. While Saudi Arabia wants to function as a global logistics hub, Dubai has prevailed regionally.

V.l.n.r.: Beat Simon (DP World), Tilman Mieseler (V-Line Group), Dominik Baumeister (PwC) und Sebastian Reimann (DVZ). (Credit: Jan Scheutzow)

03. Juni 2025 | von DVZ Redaktion

The Middle East is becoming increasingly important as a logistics hub between Asia and Europe as well as for Africa. This became clear during a panel discussion moderated by DVZ editor-in-chief Sebastian Reimann on Tuesday. Dominik Baumeister, Global Head Transport & Logistics at consultancy firm PricewaterhouseCoopers in Dubai (United Arab Emirates, UAE), differentiated between the logistics infrastructure: ‘Dubai is the most advanced, while Saudi Arabia is currently in the national development phase.’ With 15.5 million TEU, the terminal company DP World set a 10-year record at its home port of Jebel Ali in Dubai in 2024. However, according to Baumeister, only 15 per cent is accounted for by imports, and the export share is even lower.

The opening of Saudi Arabia is influencing the flow of goods in the region. According to Beat Simon, Global Chief Commercial Officer at DP World, Jebel Ali is increasingly developing into a distribution hub for local markets. According to him, the Middle East is also looking towards new markets in Africa and Asia. In view of global geopolitical tensions, he said: ‘The situation is stabilising in the Middle East, while the Western world is destabilising.’ Tilman Mieseler, CEO of the V-Line Group in Sehnde near Hanover, observes: ‘Saudi Arabia is looking critically at the Western world.’ The supply chain service provider procures parts for industrial companies and the kingdom is ‘still the main market’ for sourcing. With regard to the Saudi transformation programme ‘Vision 2030’, he finds it ‘impressive how quickly projects are being driven forward’.

According to Baumeister, the region is increasingly investing in the local logistics market. In Saudi Arabia, the government has ‘recognised that strong logistics networks are needed’. However, 3PL services there are often provided by local agents owned by the royal family. While Saudi Arabia wants to function as a global logistics hub, Dubai has prevailed regionally. The consultant sees clear competition above all in the air freight sector - between Dubai, Doha (Qatar) and Abu Dhabi (UAE). Mieseler welcomes this development: ‘Competition is good for resilience.’ This will have a positive impact on quality and costs. (kk)

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On the way to becoming the next major logistics hub