DP World has been identified as one of the top five overseas investors in the global logistics sector by leading industry consultants, having invested more than $10B (AED 37.3B) since 2012, according to the latest foreign direct investment (FDI) data.
Ranked fifth by the total value of direct investments allocated to the overseas logistics services sector in the 2022 top five list published by the FT’s FDI Intelligence, DP World invested $320M (AED 1.18B) in the past year despite the global economy slowing and demand for logistics services stalling. The industry is expected to see single-digit demand growth in 2023.
The other firms in the top five are US-based Amazon and Denmark-based AP Moller Maersk. DP World is the only company in the top five based outside the US or Europe.
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 latest “Trade in Transition” study in January, commissioned by DP World and led by Economist Impact, revealed the emergence of major shifts in globalisation, as companies rushed to move manufacturing closer to home to protect against supply chain disruptions while increasingly protectionist policies are breaking the world into trade blocs. Its key finding is that 96 percent of companies are making changes to their supply chains due to geopolitical events.”
DP World’s focus in 2022 was to expand its partnerships to leverage global trade potential. To this end, it formed a new investment platform with the British International Investment Group to accelerate investment in Africa and raised approximately $300M (AED 1.1B) by enhancing its relationship with India’s National Infrastructure Investment Fund (NIIF).
In Africa, the company’s $1B investment in the development of the Port of Ndayane in Senegal is its largest port investment in Africa and the largest single private investment in the history of Senegal. Plans are underway to expand operations in Caucedo, Dominican Republic, while Callao Port expansion in Peru is set to create one of the biggest terminals in South America later this year, according to Khaleej Times.
The UK has been another key destination for investment, with DP World having invested £2B (AED 8.99B) over the last decade, and a further £1B investment earmarked for the next 10 years. In Romania, DP World is building new infrastructure at the Port of Constanta, including a new roll-on/roll-off (RO-RO) terminal, to turn it into one of the most critical cargo and vehicle hubs on the Black Sea and a key gateway for trade into Eastern Europe.
