FedEx Express to set up regional hub in Dubai South

The centre will help the company meet growing trade demands within the Middle East, Indian subcontinent and Africa

Dubai Civil Aviation president Sheikh Ahmed bin Saeed, fifth from left at the back, and other officials watch as Khalifa Alzaffin, right, and Jack Muhs sign the agreement. Photo: FedEx Express

FedEx Express, the world’s largest express transport company, will set up its new regional hub in Dubai as it seeks to expand its footprint in the Middle East, the Indian subcontinent and Africa.

The FedEx subsidiary signed an agreement with Dubai South, a master development that is home to Al Maktoum International Airport, to build its new centre within the Logistics District, the company said on Tuesday.

"With increasing trade needs within the region and globally, the ideal location of the hub and our advanced technology solutions will allow us to grow and strengthen our presence in the Middle East, Indian subcontinent and Africa (MEISA) region and beyond,” said Jack Muhs, regional president of FedEx Express in the MEISA region.

Logistics companies as dealing with global supply chains blockages resulting from the Covid-19 pandemic that are threaten to dampen the festive spirit of the holiday season, forcing companies to increase delivery services and raise their warehouse investments.

Dubai, a regional trade and finance centre, has positioned itself as a global air and sea logistics provider with state-of-the-art seaports, airports and economic free zones.

"The mega logistic player’s presence will further consolidate our global position as the preferred choice for industry players seeking to operate in an integrated, economic environment, where they would connect with international markets through a multi-modal platform," said Khalifa Alzaffin, executive chairman of the Dubai Aviation City Corporation and Dubai South.

Global trade is expected to grow 9.7 per cent a year in 2021 and 6.7 per cent in 2022, after shrinking 8.2 per cent in 2020, despite "temporary disruptions", according to the International Monetary Fund.

Trade growth is projected to moderate to about 3.5 per cent over the medium term. The overall trade recovery masks a subdued outlook for tourism-dependent economies and cross-border services more generally, the fund said.

Located near the Dubai World Central (DWC) airport, the new FedEx Express regional centre at Dubai South will "support the company’s regional and global networks and increase operational efficiencies to meet growing trade demands" within the MEISA region, the company said.

“Dubai continues to be the heart of our regional operations," Mr Muhs said.

"The hub will be developed with sustainable operations and energy use in mind, and will enhance the overall customer experience with an automated and advanced sorting system, high-speed security screening equipment, cold-chain services, and capabilities to manage dangerous goods."