Makram Raad, country manager for DHL Express in Kuwait, talks to The Energy Year about reducing Scope 3 emissions for clients by utilising sustainable fuel and improvements in Kuwait’s transportation infrastructure. DHL Express is a global logistics company that provides international shipping, warehousing and distribution services.
What does the GoGreen Plus initiative represent for DHL in Kuwait and globally?
It’s very near and dear to our hearts. It’s part of our 2030 strategy to become the “Green Logistics of Choice.” That means addressing all aspects of ESG, which is particularly relevant in Kuwait as an oil-producing country.
We have partnered with clients such as NBK, Burgan Bank, KIB, and Gulf Insurance Group, helping them reduce Scope 3 carbon emissions by moving their goods with sustainable fuels. Aviation is the biggest contributor to our carbon footprint, and we purchase SAF [sustainable aviation fuel] from Neste and BP. We are also investing in electric vehicles and making sure that every new facility includes sustainability measures.
Additionally, we are applying advanced data analytics and AI to create systems that will help us become more efficient, for instance, in planning delivery routes based on variables such as volume, distance, impact of priority deliveries and vehicle emission profiles.
What kind of uptake are you seeing among clients?
We were pleasantly surprised by the readiness of domestic companies. A lot of them had sustainability departments already. Especially in the banking sector, there’s been a big push. Others initiated it themselves as part of their own strategic goals.
The main challenge isn’t awareness – it’s infrastructure. For example, switching entirely to electric vehicles isn’t practical yet due to the lack of charging stations and high costs. Also, fuel is still cheap in Kuwait, so the economics don’t yet favour the shift.
Our roots go back to oil and gas. In its early days, DHL was built around servicing the IOCs, and that remains core to our value chain. Whether it’s DHL Express, DHL Global Forwarding, or DHL Supply Chain, we provide a full 360-degree logistics offering: procurement, 3PL, freight forwarding, time-critical deliveries and even consultancy.
In Kuwait, oil and gas remains a central part of our business, but we’ve also diversified, especially to support SMEs, which are a growing part of the market.
When it comes to remote exploration sites or high-priority shipments, we have delivered to vessels, to helicopters and to remote airports. We are still the only integrator landing our own aircraft in Kuwait. That reach, with our 220-country network and fleets, makes a difference.
Kuwait is geographically in a great spot, but historically, it has lacked infrastructure. Now, with projects such as the new airport and the expansion of Mubarak Al Khabeer port, we can position Kuwait as a quicker transit hub.
This opens opportunities for localisation, global exports and better turnaround from sea to air. For FDI [foreign direct investment], logistics is key. Infrastructure upgrades are what allow local players to go global, and if we get it right, Kuwait will become a gateway to the region.
We are about 10% electric, but we are doubling that number this year. The pace of our investment is linked to how fast the local infrastructure evolves. We are investing not just in EVs but in sustainable facilities as well.
We were the first international integrator to buy SAF. Today, SAF only makes up 2–3% of global jet fuel consumption, but our goal is for 30% of our aviation fuel to be blended by 2030. We can’t run on 100% SAF yet because the technology isn’t there.
On ground operations, our decarbonisation is certified externally. We support clients by reducing Scope 3 emissions, and by outsourcing to us, they can record it in their books. Also, customers who use multiple DHL divisions can use our GoGreen Dashboard to see consolidated reporting across the group or do a deep dive into individual metrics.
My simple message to all businesses is: Invest in Kuwait. It offers significant advantages – geographical location, low taxation, low labour costs and other cost efficiencies – compared to its neighbours and the world.
Kuwait is a well-rounded market that offers early-stage entry advantages for investors as a launchpad for exports. As I’ve said before, DHL is the barometer of the market. We see the volume of goods moving in and out, and I can tell you the opportunity is real.