DHL’s Middle East SAF deal signals shift from policy promises to industrial progress

DHL Express has stepped up its efforts to promote cleaner aviation fuels with a new long-term supply deal that will connect the Middle East’s first planned sustainable aviation fuel (SAF) production site to its global network.

According to a statement from DHL Group, the company has signed an offtake agreement with Dubai-based SAF developer SAF One, which will give DHL Express access to 25,000 metric tonnes of unblended SAF annually. Over a decade, this contract covers a total of 250,000 metric tonnes, with production expected to kick off in 2028 at SAF One’s main plant in Bahrain.

This agreement is significant for more than just its size. It provides DHL with a regional source of fuel that’s created to reduce lifecycle emissions from aviation, all while decreasing the company’s dependence on SAF supplied from outside the Middle East. For Gulf markets, where aviation plays a crucial role in trade, logistics, and economic diversification, this deal signals that the Middle East is shifting from mere policy promises to real industrial progress in low-carbon transport.

DHL mentioned that the fuel will be integrated into its GoGreen Plus program, which allows customers to opt for shipping services that support emission reductions. The company also says this arrangement aligns with its broader goal of increasing SAF to account for 30% of total aviation fuel use by 2030.

Abdulaziz Busbate, CEO of DHL Express MENA, described the partnership as part of the company’s ongoing commitment to Bahrain and the wider Middle East region. He highlighted that this deal could help accelerate regional decarbonization efforts and foster local innovation ecosystems. Meanwhile, Travis Cobb, DHL’s EVP for global network operations and aviation, pointed out that sourcing SAF from multiple locations will boost resilience and deliver environmental benefits as well.

Based in Dubai, SAF One promotes the Bahraini project as its flagship. The company claims that the plant will utilize renewable feedstocks and newer refining tech to produce certified SAF at scale. On its website, SAF One describes the facility as a step toward helping aviation reach net-zero emissions by 2050.

For the UAE and neighboring markets, this project fits into a broader initiative to develop a regional SAF industry instead of relying solely on imports. That’s becoming more urgent as airlines, cargo carriers, and airports across the Gulf face mounting pressure from customers and regulators to demonstrate credible emissions cuts.

DHL’s partnership also underscores the growing commercial viability of SAF. Although the fuel is still pricier than conventional jet fuel and global supply remains limited, more airlines and logistics companies are committing to long-term contracts to lock in future volumes and support new production plants. This approach, in turn, helps developers secure investments by ensuring a buyer before launch.

In this particular case, including a Middle Eastern supplier, DHL says, is aimed at creating a more geographically diverse network. That’s crucial because SAF production is still concentrated in just a handful of markets, and global companies want supply chains resilient enough to handle fluctuations, bottlenecks, and uneven availability.

The Bahrain project also complements DHL’s expanding presence in the kingdom’s aviation scene. Last year, the company announced plans to build its first aircraft maintenance hangar in Bahrain at Bahrain International Airport, with construction expected to start in October 2026 and completion anticipated by August 2028. The $85.1 million investment is meant to support DHL’s growing fleet, and includes solar power elements projected to supply up to 40% of the facility’s electricity needs.

When combined, the maintenance hangar and the SAF deal suggest Bahrain is increasingly becoming a key hub for DHL’s regional aviation ambitions. This development is likely to attract attention in the UAE, where logistics and sustainable aviation are both top strategic priorities. Dubai, Abu Dhabi, and other Gulf cities are vying to attract the infrastructure, investment, and technological innovations necessary to support greener air travel.

Deepak Munganahalli, co-founder and CEO of SAF One, expressed gratitude for the deal and highlighted the backing from Bahraini stakeholders, including BAPCO Energies and the Bahrain Economic Development Board. Their involvement shows how SAF projects now heavily rely on industrial policies, government support, and cross-sector collaboration.

The broader importance of this agreement lies in what it signifies for aviation decarbonization across the Gulf. Instead of waiting around for imported solutions, regional companies are beginning to develop their own supply chains. That shift has the potential to position the Middle East not just as a big consumer of cleaner aviation fuel, but also as a producer, really transforming the industry landscape.

For DHL, this contract marks another step towards establishing a lower-emission air transportation network. For SAF One, it offers a crucial commercial anchor for their first-of-its-kind facility. And for the Gulf region overall, it’s a pretty clear sign that sustainable aviation is no longer just a pipe dream, it’s becoming an industrial reality.