DP World sets $3 billion global expansion drive

DP World plans to invest about $3 billion during 2026 as the Dubai-based ports and logistics group expands capacity across the UAE, Britain, the Democratic Republic of Congo, India and Saudi Arabia while navigating disruption to Middle East trade routes.

The investment programme will focus on port capacity, terminal development and logistics infrastructure. Major projects include Jebel Ali Port and EZ World in the UAE, London Gateway and London Gateway Park in Britain, Banana Port in the Democratic Republic of Congo, Tuna Tekra Kandla in India and Jeddah Logistics in Saudi Arabia. Spending will also cover Drydocks World and the company’s Maritime Solutions business.

DP World had already deployed $1.5 billion of capital expenditure during the first six months of the year, compared with $1.1 billion in the corresponding period of 2025. The investment underscores its strategy of building an integrated network combining marine terminals, freight forwarding, warehousing, road and rail transport and other supply-chain services.

The spending plans were announced alongside first-half results showing revenue rose 13.1 per cent to $12.7 billion. Profit for the period, however, fell 39.1 per cent to $585 million from $960 million a year earlier. Adjusted earnings before interest, tax, depreciation and amortisation declined 5.6 per cent to $2.86 billion, while the EBITDA margin narrowed to 22.5 per cent from 27 per cent.

Higher costs and disruption affecting shipping through the Middle East weighed on profitability. Net finance costs increased to $760 million from $631 million, reflecting higher average net debt and greater foreign-exchange losses. Cash generated from operations stood at $2 billion, compared with $2.6 billion a year earlier.

Container traffic also reflected the pressure on the Gulf. DP World handled 42.8 million twenty-foot equivalent units across its global terminals during the first half, down 5.7 per cent. Excluding Jebel Ali Port, however, volumes increased 5.4 per cent on a reported basis and 6.5 per cent on a like-for-like basis to nearly 39.7 million TEUs. Growth outside Dubai was supported by operations across Africa, Asia Pacific, Europe and the Americas.

Jebel Ali remains fully operational and has sustained no physical damage, although regional conflict has reduced vessel traffic into the port. The company has responded by expanding inland connections and using its wider network to keep cargo moving. Earlier in the year, it also expected its Red Sea terminals, including Jeddah and Sokhna in Egypt, to handle additional traffic as shipping patterns changed.

The UAE component of the investment programme is gaining strategic importance. DP World plans two terminals in Fujairah under a 50-year concession, extending its national gateway network beyond Jebel Ali and giving customers greater access to facilities on the Gulf of Oman side of the country. The Al Rugaylat container and multipurpose terminal and Dibba General Cargo terminal are expected to be developed in phases.

The Fujairah expansion is designed to strengthen supply-chain resilience by creating additional capacity outside the Strait of Hormuz. The development is expected to complement rather than replace Jebel Ali, which remains the centrepiece of DP World’s UAE operations and one of the world’s largest container ports.

India is another major focus. DP World pledged an additional $5 billion in October 2025 to strengthen its integrated supply-chain network there, on top of about $3 billion invested over the previous three decades. The Tuna Tekra terminal at Kandla forms part of the current capital programme and is intended to expand maritime and multimodal capacity serving growing trade flows.

The company is maintaining substantial liquidity while pursuing the expansion. Total liquidity stood at $8.2 billion at the end of June, comprising $5.5 billion of cash and short-term investments and $2.7 billion of undrawn committed borrowing facilities. Pre-IFRS 16 leverage rose to 3.7 times from 3.4 times at the end of 2025, remaining below the group’s stated ceiling of four times.