DP World and Al Dahra Holding have agreed to work together on plans for a wider agri-logistics network across the Gulf Cooperation Council, in a move that underlines the Gulf’s push to strengthen food security and reduce vulnerabilities in supply chains.
The memorandum of understanding sets out a framework for examining end-to-end systems for the movement, storage and distribution of agricultural commodities, with a particular focus on ports, logistics hubs, cold storage and ...
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warehousing for perishable goods. The companies said they want to build infrastructure that can handle everything from import and processing to onward distribution.
The partnership is being pitched against the backdrop of the region’s heavy dependence on imported food. The UAE sources around 85% to 90% of its food from abroad, according to the companies, making resilient transport and storage networks a strategic priority rather than simply a commercial one.
Under the proposed collaboration, DP World’s port and logistics reach would be combined with Al Dahra’s agricultural sourcing and procurement capabilities. The two companies also plan to assess joint investment opportunities in logistics facilities, free zone operations and agri-food processing centres in Abu Dhabi and across the wider GCC.
The scope of the agreement extends beyond the Gulf. The companies said they will look at expanding sourcing routes across Africa, Eastern Europe, Central Asia and the Americas, while also considering digital tools, traceability systems and other technology-led solutions to improve visibility and efficiency in the supply chain.
Regulatory alignment is expected to be another area of focus, including food safety rules and customs procedures, which can often slow cross-border trade in fresh and processed food products.
Yuvraj Narayan, group chief executive of DP World, said the tie-up reflected the company’s aim of supporting resilient and sustainable supply chains. Arnoud van den Berg, group chief executive of Al Dahra, said the deal was intended to improve the reliable sourcing, movement and distribution of food commodities at scale.
The agreement also reflects a broader trend in which logistics groups and agribusinesses are seeking greater control over the flow of food from farm to market, as countries across the Gulf move to shore up supply against geopolitical disruption, climate pressure and shipping shocks.
Source: Noah Wire Services
