DP World’s $29m Bet on Egypt’s Cold Storage

North Africa and the Middle East are in the middle of a cold chain explosion. The market is expected to reach $41.1 billion by the end of 2030 with a compound annual growth rate of 8.8%, according to BCC Research. DP World has unveiled plans for a state-of-the-art cold storage facility in Egypt, specifically, the country’s Al Oula region.

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The investment, pegged at around $29 million (roughly 1.4 billion Egyptian pounds), will see the construction of a 174,311 square feet warehouse within the Elsewedy Industrial Park. Eight temperature-controlled chambers will house refrigerated and frozen goods, fruits, vegetables, and dairy, among them, with a capacity for 25,000 pallet positions.

Mohammad Shihab, general manager of DP World Egypt, described the project as “a major step in strengthening Egypt’s cold chain capabilities and creating new opportunities for trade and industry.”

The facility arrives at a time when Africa’s food storage infrastructure remains painfully sparse, covering less than 30% of annual production. The lack of adequate cold chain solutions contributes to severe post-harvest losses; nearly 40% of perishable goods and 20% of other food products are lost each year somewhere along the supply chain.

This development highlights more than just new brick and mortar; it shows Egypt’s ambition to plug one of the continent’s biggest economic leaks. For companies across the agricultural sector, predictable access to cold storage can mean the difference between profit and ruin.

For consumers, it promises fresher produce and a more reliable supply. But constructing the facility is only half the challenge. Ensuring smooth operations, power, maintenance, transportation linkages, skilled workforce will be what determines whether this investment pays off or joins the long list of under-utilized infrastructure projects.

If structured and managed well, it might set the standard for cold storage on the continent. But much will depend on governance, regulatory support, and the ability to integrate into regional and global trade networks. Only then can such infrastructure move from promise to performance.

Those promises need to move quickly as the BCC research indicated five core drivers behind the rapid growth of cold chain in Northern Africa and the Middle East.

1. Rising Demand for Perishables: Urbanization, population growth, and rising disposable incomes are fueling demand for fresh fruits, vegetables, dairy, seafood, and temperature-sensitive pharmaceutical products.

2. E-Commerce and Online Grocery Growth: As consumers shift to online grocery shopping, the need for efficient last-mile cold chain logistics has increased across urban centers.

3. Stricter Food Safety and Pharma Regulations: Governments across MENA are enforcing tighter controls on food safety and pharmaceutical storage, encouraging the adoption of advanced cold chain solutions to maintain compliance.

4. Investment in Cold Storage and Smart Tech: Smart warehouses, real-time monitoring systems, and automation are being deployed to improve efficiency and reduce spoilage.

5. Strategic Location for Global Trade: With access to Europe, Asia, and Africa, the MENA region continues to serve as a crucial transit point for temperature-sensitive goods.