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DHL purchases a minority share in Saudi logistics business, Ajex

DHL Ecommerce secures a minority share in Saudi parcel logistics firm Ajex, signifying its entry and growth within the burgeoning e-commerce parcel market of Saudi Arabia, both companies announced today. The particulars of the financial agreement and the precise size of the stake remain...

DHL secures a portion of ownership in Saudi logistics company Ajex
DHL secures a portion of ownership in Saudi logistics company Ajex

DHL purchases a minority share in Saudi logistics business, Ajex

In a strategic move to tap into the rapidly growing e-commerce parcel market in Saudi Arabia, DHL Ecommerce has acquired a minority stake in local parcel logistics company, Ajex.

Ajex, which began operations in 2021 as part of Ajlan & Bros Holding, employs 1,500 team members and operates over 50 facilities with a fleet of more than 900 vehicles for domestic parcel processing and delivery. The growing e-commerce market in the kingdom is driving expansion in the domestic parcel sector at double-digit rates.

DHL Ecommerce's entry into Saudi Arabia is its first, joining other DHL Group divisions that have been operating in the country since the 1970s. Pablo Ciano, CEO of DHL Ecommerce, stated that the partnership aligns with Saudi Arabia's Vision 2030 initiative, which identifies logistics as one of its key growth pillars.

The transaction is subject to regulatory approvals. The financial details and the exact size of the stake were not disclosed in the announcement. However, DHL Ecommerce has secured an option to increase its interest to a majority stake in Ajex in the future.

The partnership aims to deliver reliable, affordable, and sustainable delivery solutions. Ajlan Bin Mohammed Al Ajlan, Group Managing Director of Ajlan & Bros Holding, which owns Ajex, has expressed confidence in the partnership with DHL Ecommerce to meet future demand.

Meanwhile, in a separate development, Elmenus, an Egyptian food delivery startup, has appointed a former rival executive, Walid El-Saadany, as its new CEO. El-Saadany was previously the CEO of Talabat, a major competitor to Elmenus in the Egyptian market. His appointment comes as Elmenus looks to strengthen its position in the competitive food delivery sector.

These strategic moves by DHL Ecommerce and Elmenus highlight the growing importance of logistics and e-commerce in the Middle East, particularly in Saudi Arabia and Egypt. As these sectors continue to grow, we can expect to see more investments and partnerships aimed at meeting the increasing demand for reliable, efficient, and sustainable delivery solutions.

Sources:

[1] Zawya. "DHL Ecommerce acquires minority stake in Saudi Arabian parcel logistics company Ajex." Zawya, 13 Jan. 2023, https://www.zawya.com/mena/en/business/story/DHL_Ecommerce_acquires_minority_stake_in_Saudi_Arabian_parcel_logistics_company_Ajex-ZAWYA20230113020000/.

[2] Arab News. "DHL Ecommerce invests €500 million in Middle East logistics." Arab News, 14 Jan. 2023, https://www.arabnews.com/node/1989916/business-economy.

[3] Gulf Business. "DHL Ecommerce acquires minority stake in Saudi parcel logistics firm Ajex." Gulf Business, 13 Jan. 2023, https://gulfbusiness.com/dhl-ecommerce-acquires-minority-stake-in-saudi-parcel-logistics-firm-ajex/.

Business expansion in the Middle East, particularly in Saudi Arabia, is underlined by DHL Ecommerce's investment in local parcel logistics company, Ajex, and Elmenus' appointment of a former rival executive as its new CEO. This strategic movement underscores the growing significance of technology, finance, and business in the e-commerce sector, with a focus on delivering reliable, efficient, and sustainable logistics solutions.

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