FedEx MEA’s Taarek Hinedi shares key logistics trends and expansion plans

In an interview for Gulf Business, Taarek Hinedi, vice president, FedEx Middle East and Africa Operations, discusses the significant progress and strategic initiatives behind the recently opened FedEx hub at Dubai World Central (DWC).

The new centre represents a significant investment in the UAE economy, supporting the growth of non-oil exports and strengthening the region’s e-commerce and trade capabilities.

Hinedi also explains why the UAE continues to be a priority market for the company, trends in the air transport industry and the company’s commitment to sustainable development through innovative solutions and technologies.

Give us an overview of your investment and operations at the recently opened FedEx distribution centre at Dubai World Central.

The FedEx hub at Dubai World Central (DWC) represents a significant upgrade to the region’s aviation and logistics ecosystem. It represents a long-term investment of approximately AED 1.3 billion in the UAE economy through infrastructure and technological advancements at the facility. This investment also reaffirms our commitment to the UAE’s economic growth while aligning with the “National Agenda for Non-Oil Export Development” to increase foreign trade. It also supports the growing demand for e-commerce and trade in the Middle East, Indian Subcontinent and Africa (MEISA) region and beyond.

As the first courier and freight forwarder to operate flights and have a hub at DWC, FedEx is contributing to Dubai’s Economic Agenda D33, which aims to double Dubai’s foreign trade and add 400 cities to the country’s foreign trade map.

With a comprehensive multimodal transportation network and more than 57,000 square meters (610,000 square feet), the FedEx Hub at DWC increases operational efficiency through numerous innovations that enhance the customer experience. It includes cutting-edge technologies such as automated and advanced sortation systems that can handle up to 9,000 packages per hour; high-speed security checks; cold chain services; and dangerous goods management capabilities.

Ultimately, this facility expands our global network of 220 countries and territories, strengthens the connectivity of the entire region and plays a key role in facilitating international trade and economic activity.

Why is the UAE a priority market for FedEx? What are your expansion plans in this market?

The UAE is a growing power in the global economy and a major player in the GCC trading bloc. It is also a competitive export hub and one of the world’s five largest re-export hubs. The UAE’s open trade and investment policies, strong macroeconomic environment and access to large regional and global markets are some of the reasons why FedEx chose Dubai as its regional gateway in 1989.

The World Bank’s increase in real GDP growth forecast for the UAE to 4.1 percent in 2025 reflects the resilience and potential of the country’s economy.

The UAE’s record high non-oil economic growth, exceeding AED 3.5 trillion in 2023, also highlights the country’s increased need for efficient, reliable and smart logistics solutions to support the flow of goods and services. Our hub at DWC enables us to offer customers in the UAE and the wider region enhanced services that meet their evolving shipping requirements.

FedEx is committed to investing in its infrastructure, networks and solutions to support socio-economic development, digital transformation and innovation in the region. Our goal is to unlock growth opportunities for e-commerce businesses, support SME expansion into global markets and increase market access through our global air and ground networks.

We recently launched our new FedEx Less-than-Container Load (LCL) Priority service, connecting Asia Pacific with key markets in the Middle East. This multimodal ocean and road solution offers port-to-door and door-to-door customs clearance with a strategic balance of speed and affordability, while providing a new benchmark in efficiency.

We also introduced innovative digital solutions, including a new, automated e-commerce feature in FedEx Ship Manager that supports small businesses and online retailers across the region by helping them efficiently manage their online shipments.

What are the key trends and opportunities for the air cargo industry in the UAE and the broader Middle East region?

Global trade is expected to gradually recover this year, recovering from a weak 2023, which will have a positive impact on the entire logistics sector.

According to the International Air Transport Association (IATA), all regions are expected to see growth in air cargo traffic in 2024, with the Middle East seeing the largest increase of 12.3%. The latest data reveals that Middle Eastern carriers saw demand for air cargo grow by 9.4% year-on-year in April. Additionally, the Middle East–Europe market performed particularly well, posting a year-on-year increase of 30.1%, ahead of the Middle East–Asia region, which saw a 10.4% year-on-year increase.

The growth of e-commerce is a significant factor in this growth. The e-commerce market in the MENA region is expected to reach $57 billion by 2026.

The forecast indicates a compound annual growth rate (CAGR) of 11 percent from 2022 to 2026.

To support the growth of the e-commerce sector while focusing on meeting the needs of online sellers and their end customers, we have expanded our offering and added WhatsApp notifications to our FedEx Delivery Manager International solution, which helps recipients plan parcel deliveries around their busy schedules.

We have also introduced photo proof of delivery for express home deliveries to provide peace of mind to online retailers and their customers.

Is FedEx focusing on any specific sectors or industries to expand its operations in the UAE?

We continue to strengthen our service offering while keeping customers at the heart of everything we do. This includes optimizing our network and developing new services to meet the needs of various industries such as automotive, aviation, electronics, oil and gas, fashion and retail, e-commerce and healthcare.

To help businesses grow and capitalize on global opportunities, we have enhanced our FedEx International Priority service. Exporters in the UAE now benefit from at least a one-day improvement in transit times to key markets compared to previous years.

We also launched FedEx Regional Economy services for parcels and cargo to meet the growing demand for cross-border trade in the Middle East.

Road services with a deferred delivery date and a specific delivery day are ideal for companies, especially small and medium-sized ones, as they provide a cost-effective solution for shipping less urgent shipments within the key countries of the region.

Our hub at DWC also provides the opportunity for future expansion of flights via Dubai, allowing us to further expand our operational and commercial footprint.

Please give us an overview of the sustainability solutions your company currently offers.

Our approach to sustainability and carbon reduction plans are focused on three key ideas: reduce, replace and revolutionize. Our goal is to mitigate the impact of our operations and activities, replace older technologies and vehicles, and revolutionize our fleets and facilities with newer and more efficient technologies. Our emissions reduction efforts are centered around vehicle electrification and the use of sustainable energy and fuels.

Through a phased strategy, we are working toward our goal of transforming the entire FedEx parcel pickup and delivery (PUD) fleet into zero-emission vehicles by 2040. In addition, consistent with our commitment to providing sustainable solutions to our customers, FedEx branded cardboard packaging is 100% recyclable and contains 45% recycled content.

Our hub at DWC is also a testament to our commitment to sustainability. The facility is compliant with the Dubai Municipality Green Standard for sustainable construction and regulation, and features 100% LED lighting, charging infrastructure for delivery vehicles, electric ground equipment such as forklifts and employee cars, and an intelligent building management system to automatically manage cooling and lighting. It will also feature solar panels that will generate around one megawatt of power. Surplus energy will be fed back into Dubai’s grid, supporting the growth of clean energy in the city’s energy mix.

Our customers can also access our FedEx Sustainability Insights tool on fedex.com, which is an advanced cloud platform that gives them direct access to near real-time emissions data for their shipments across the FedEx network. They can then use this data to make informed decisions about their future shipping strategy to reduce their impact on the planet.

In addition, we support research on carbon sequestration to contribute to the development of long-term and sustainable carbon capture strategies.