Dubai based DP World's overseas logistics investments cross $10bn


As per the most recent foreign direct investment (FDI) data given by major industry experts, Dubai-based DP World, one of the top five foreign investors during this time, has invested more over $10 billion (Dh37.3 billion) in the global logistics business since 2012.

In a recent top five ranking for 2022 released by The FT's FDI Intelligence, DP World is ranked fifth globally by the total value of direct investments made in the international logistics services industry.

DP Global invested a total of $320 million (Dh1.18 billion) over the past year, despite the fact that demand for logistics services stalled as the world economy slowed. Forecasts predict a single-digit increase in industrial demand by 2023.

The top five companies also include the American market leader Amazon and the Danish company AP Moller Maersk. The only company outside of the US or Europe in the top five is DP World.

Commenting on the ranking, 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. DP World’s companies touch people’s lives around the world every day. Sometimes it is tangible, and sometimes we are in the background making sure people and businesses get the goods they require. Our infrastructure opens untapped trade opportunities, grows economies and makes goods more affordable. 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.”

The most recent "Trade in Transition" study, conducted in January and commissioned by DP World and Economist Impact, showed the emergence of significant changes in globalisation as businesses hurried to relocate manufacturing domestically to guard against supply chain disruptions and the world is fragmenting into trade blocs as a result of increasingly protectionist policies. Its main finding is that 96% of businesses are altering their supply chains as a result of geopolitical developments.

In order to maximise this trade potential, the company's partnerships needed to be expanded in 2022. To generate about $300 million (Dh1.1 billion), DP World strengthened its partnership with India's National Infrastructure Investment Fund (NIIF) and established a new investment platform with the British International Investment Group to speed up investment in Africa.

The expansion of the Port of Ndayane, Senegal, marked the start of a $1 billion project. The continent has been a major focal area. The largest port investment ever made by DP World in Africa as well as the largest private investment ever made in Senegal. The new port will strengthen Senegal's position as a trading hub in West Africa and advance its development over the course of the next century. The adjacent Dakar port is attributed with a 10% increase in Senegal's GDP growth.

The growth of Caucedo's operational capacities in the Dominican Republic is also moving forward, and when Callao Port in Peru is finished later this year, it will be one of the biggest single terminals in South America.

Another important location for investment is the UK. DP World has contributed 2 billion pounds (Dh8.99 billion) to the UK over the past ten years, supporting thousands of jobs. The logistics provider has allocated an additional 1 billion pounds for investment over the next ten years, and a 350 million new fourth berth at London Gateway is now well under way.

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