Germany-headquartered DHL eCommerce and AJEX Logistics Services have entered into an agreement in which DHL will acquire a minority stake in the Saudi Arabian parcel logistics company.
DHL eCommerce said in a statement on Monday that the deal expanded the domestic parcel transport company into the rapidly growing Saudi Arabian e-commerce parcel market.
“Although AJEX only began its operations in 2021, it has already established itself as a leading parcel service provider in the rapidly evolving domestic market, with robust growth and an extensive distribution network,” the company said.
The agreement was signed during a ceremony attended by Pablo Ciano, CEO of DHL eCommerce, Yin Zou, executive vice president of corporate development at DHL Group, Mohammed Bin Abdulaziz Al Ajlan, deputy chairman of Ajlan & Bros Holding and Ajlan Bin Mohammed Al Ajlan, group managing director of Ajlan & Bros Holding.
Ciano said the company was focusing on markets like Saudi Arabia which has strong economic development as part of its corporate Strategy 2030 Accelerate Sustainable Growth.
“We are confident that AJEX, with its commitment to quality and strong customer focus, supported by a highly motivated team and backed by Ajlan & Bros Holding, is the perfect partner to help us expand our e-commerce-focused parcel business into this booming market,” he said.
“Together, leveraging our international expertise in parcel operations, we will deliver reliable, affordable, and sustainable delivery solutions.”
Bin Mohammed Al Ajlan said Saudi Arabia was fostering economic growth and diversifying industries with logistics as key pillars under its Vision 2030.
“In this context, we are also witnessing strong growth in e-commerce, which in turn is driving expansion in the domestic parcel sector. The demand for a parcel service provider with local expertise and a global network is steadily rising,” he said.
“By partnering with DHL eCommerce, a globally trusted e-commerce specialist, we will be well-positioned to meet this demand in the future.”
AJEX has 1 500 staff who provide domestic parcel processing and delivery through an extensive network that includes over 50 facilities and a fleet of more than 900 vehicles.
The company will continue to lead the business in partnership with DHL eCommerce, which will contribute its expertise in the international parcel sector and have representation on the management board. DHL eCommerce also secured the option to increase its interest to a majority stake.
All four international divisions of DHL Group will be represented and actively engaged in the market.
DHL established its presence in Saudi Arabia in the 1970s with its DHL Express business unit. Its other divisions have been operating in the country for several years, providing specialised services such as contract logistics and freight forwarding solutions.
The deal and the outlined partnership await regulatory approval.
