Company snapshot

Date established 1989

Main business sector Third-party logistics, distribution, transport and forwarding

Main business region UAE, worldwide

Chairman Ahmed Humaid al-Tayer

Danzas AEI Emirates structure

Dubai-registered Danzas AEI Emirates is a third-party logistics provider that was set up in 1989 as a joint venture between local family conglomerate Al-Tayer Group and Germany’s DHL.

Al-Tayer Group was established in 1979 as a local distributor of finished cars and parts. Today, it is a diversified company that operates in 12 countries and employs more than 7,800 people.

The group’s activities span retail; car sales and servicing; fragrances and cosmetics; engineering; and contracting. It is the local representative of some of the world’s leading consumer brands, including Ford, Ferrari, Maserati, Armani, Bulgari, Gucci, Banana Republic and Harvey Nichols. It manages more than 180 Middle East retail outlets.

DHL is part of Deutsche Post DHL, Europe’s largest mail services operation and market leader in Germany’s mail and parcels market. Deutsche Post DHL generated revenues of more than e46bn ($62bn) in 2009.

State-owned Deutsche Bundespost was founded in West Germany in 1950. It merged with East Germany’s Deutsche Post in 1990 following reunification and the company was privatised in 1995. It bought Basel-based forwarder the Danzas Group in 1998 and air express specialist DHL in 2002.

Deutsche Post DHL holds a 40 per cent stake in Danzas AEI Emirates, which recorded a net income of AED53.8m ($14.5m) in 2009. Danzas AEI Emirates is the operating name for DHL Global Forwarding in the region.

Danzas AEI Emirates, in numbers
Air freight volume growth
percentage 
2008 16.4
2009 -4.6
2010f 18.5
Source: Danzas AEI Emirates
f=Forecast

Danzas AEI emirates operations

Danzas AEI Emirates has warehouses in Dubai at Jebel Ali Free Zone (Jafza); Dubai Airport Free Zone; Dubai Cargo Village; and Al-Quoz; as well as in the neighbouring emirate of Sharjah. Through the DHL Global Forwarding network, it offers end-to-end logistics and transport solutions by air, road and sea, along with warehousing and distribution in more than 200 countries.

Danzas AEI Emirates
Seafreight volume growth
percentage 
2008 61
2009 1.5
2010f 20.4
Source: Danzas AEI Emirates
f=Forecast

The company provides logistics services for specific industrial sectors, such as technology, automotive, energy, life sciences, healthcare and consumer goods. It works with multinational firms that use the UAE as a regional distribution hub.

In November 2008, Danzas AEI Emirates opened the Danzas Regional Hub, the Middle East’s single-largest logistics facility, at Jafza. At 80,000 square metres, the AED185m multi-purpose distribution centre covers a site the size of 11 football pitches.

Danzas AEI Emirates
Warehouse capacity
(thousand square metres)
2007/8 112,114
2008/9 158,223
2009/10 155,223
Source: Danzas AEI Emirates

The centre is a hub for movements of goods between Europe, Africa, the Indian subcontinent and the Far East. Sister-company DHL Global Forwarding has built up its regional truck network, launching overland trucking between the Middle East and Europe out of the Danzas Regional Hub. It experienced a boost in demand in April when volcanic ash from Iceland grounded flights across Europe.

Danzas AEI Emirates ambitions

Despite the global downturn in world trade, Danzas AEI Emirates is expanding its Middle East capacity with medium to long-term growth in mind.

The firm has reserved three plots of land at Dubai’s new Al-Maktoum International airport: 155,000 sq m, plus option for another 75,000 sq m for a new logistics centre, and another of 45,000 sq m for air freight operations. Its first cargo charter flight took off from the new airport in early September.

The firm expects to see strong growth in demand for premium supply-chain logistics solutions for sectors that require specialist air-freight handling. Cold-chain logistics offers rigid standards of hygiene and temperature control to prevent contamination or damage. Danzas AEI Emirates has limited capacity for perishables to and from Dubai. One plan is to configure some space at Al-Maktoum International to handle perishable air freight.

Danzas AEI Emirates also expects increased demand for cross-border outsourcing of logistics and distribution, as regional and multinational players enter new markets.