DHL eCommerce enters Saudi Arabian market by acquiring equity stake in parcel logistics company AJEX
For DHL eCommerce, whose core business is domestic parcel transport in selected European countries, the United States, and certain key Asian countries, this agreement represents an expansion into the rapidly growing Saudi Arabian e-commerce parcel market.
- Logistics is a key growth pillar of Saudi Arabia's Vision 2030, with rapid expansion anticipated
- DHL eCommerce and AJEX partner to capitalize on the anticipated double-digit growth rate in Saudi Arabia's parcel market
Bonn, Riyadh - 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. For DHL eCommerce, whose core business is domestic parcel transport in selected European countries, the United States, and certain key Asian countries, this agreement represents an expansion 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 agreement was signed during a ceremony attended by Pablo Ciano, CEO of DHL eCommerce, Yin Zou, Executive Vice President 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.
"As a key component of our corporate Strategy 2030 'Accelerate Sustainable Growth' we are focusing on markets like Saudi Arabia that exhibit significant growth dynamics and strong economic development. 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. Together, leveraging our international expertise in parcel operations, we will deliver reliable, affordable, and sustainable delivery solutions," states Pablo Ciano, CEO of DHL eCommerce.
"Saudi Arabia is dedicated to fostering economic growth and diversifying its industries under Vision 2030 with logistics serving as one of the key pillars. 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. By partnering with DHL eCommerce, a globally trusted e-commerce specialist, we will be well-positioned to meet this demand in the future," states Ajlan Bin Mohammed Al Ajlan, Group Managing Director of Ajlan & Bros Holding.
With 1,500 team members, AJEX provides domestic parcel processing and delivery through an extensive network that includes over 50 facilities and a fleet of more than 900 vehicles. Moving forward, AJEX will continue to lead the business in partnership with DHL eCommerce, which will not only contribute its expertise in the international parcel sector but also have representation on the management board. Additionally, DHL eCommerce has secured the option to increase its interest to a majority stake.
With DHL eCommerce, all four international divisions of DHL Group will be represented and actively engaged in the market. DHL first established its presence in Saudi Arabia in the 1970s with its DHL Express business unit. The other divisions have also been operating in the country for several years, providing specialized services such as contract logistics and freight forwarding solutions.
The deal and the outlined partnership are contingent upon regulatory approvals. The transaction will only be implemented after obtaining clearance under the relevant merger control legal requirements.
David Stöppler
DHL Global Forwarding, DHL Freight, DHL eCommerce
DHL Group
Charles-de-Gaulle-Str. 20
53113 Bonn
Germany