PROFILE DHL
The CEO is particularly excited by projections for growth in the Asia region. DHL research points to three trade triangles centred on Asia which is expected to contribute nearly 20 per cent of global trade by 2015, reaching a full 40 per cent share by 2028. The logistics giant has outlined the IntraAsia (IA) triangle and the Middle EastAfrica-Asia (MEAA) triangles as being compelling engines of global growth. The MEAA triangle is set to comprise 14 per cent of global trade by 2028 and will emanate from China’s trade with South Africa, Saudi Arabia and the UAE. This will be driven by China’s imports of raw materials and exports of textiles, machinery and metal products. India’s contribution to growth within this triangle is also sizeable with similar raw material imports. “The big growth is Asia, this is where the middle class is growing and it is based on exports. If you look at the focus that China puts on Africa, where they want to get control of access to natural resources, it makes sense. On the one side, China wants to build the infrastructure of Africa in a big way; telecoms, for example. There are also a lot of export flows into Africa and a lot of that also goes to the Middle East. Dubai has a major role as a hub,” Ude tells Gulf Business. “On the other hand, the Middle East is a growing place for consumption. The construction and energy sector is driving some of the region’s growth.
DHL headquarters.
It’s sometimes easier to move something from China to South Africa than it is to move something across the Middle East. However, it is largely Asia, which has little resources, that is making the lanes to Africa and Latin America grow so fast.” DHL, part of German company Deutsche Post DHL, is well positioned to home in on the astonishing growth in trade levels in the coming decades. With a
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presence in 220 countries worldwide and around 300,000 employees, DHL raked in around $61 billion in revenue in 2009 and hopes to continue with this year’s double digit growth in all its divisions. Ude predicts that a sizeable chunk of ensuing profits will be generated in the Middle East.
International Trade as % of World GDP 55 50 45 40 35 30 0 1985
1990
1995
2000
2005
2010E
Source: World Bank