The German conglomerate said it will set up its global logistics headquarters, including its portfolio for airports, cargo infrastructure and ports, in Dubai, following the city’s Expo 2020 event. For Siemens, the move will represent a commitment to the local government’s development agenda, and for Dubai, the partnership may signal a potential move into the technology and logistics industries as it struggles to move beyond its petroleum-based economic origins.
Expo 2020 is part of Dubai’s plans to expand its infrastructure and attract tourism.
Its organizers hope that drawing in big names like Siemens will demonstrate how the United Arab Emirates is back on the upswing after property prices and growth took a beating during the 2009 global financial crisis.
“Siemens wants to further expand its operations in order to be close to key customers and markets,” said Siemens’ managing board member and chief technology officer Roland Busch.
The company noted that, with the global logistics market growing at a compounded annual growth rate (CAGR) of 7.5 percent, the UAE’s logistics sector is expected to grow at a CAGR of 5.7 percent between 2015 and 2020.
Siemens currently employs 2,600 workers in the UAE.