AJEX Logistics Services, the e-commerce logistics division of DHL Group, and DHL eCommerce have reached an agreement whereby DHL will purchase a minority share in the Saudi parcel logistics business. This agreement is an expansion into the rapidly expanding Saudi Arabian e-commerce parcel market for DHL eCommerce, whose primary business is domestic parcel transport in a few key Asian countries, the United States, and a few European countries. With strong growth and a wide distribution network, AJEX has already made a name for itself as a top parcel service provider in the quickly changing domestic market, despite only starting operations in 2021.
Pablo Ciano, the CEO of DHL eCommerce, Yin Zou, the Executive Vice President of Corporate Development at DHL Group, Mohammed Bin Abdulaziz Al Ajlan, the Deputy Chairman of Ajlan & Bros Holding, and Ajlan Bin Mohammed Al Ajlan, the Group Managing Director of Ajlan & Bros Holding, were present at the signing ceremony.
“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.
Through a vast network comprising more than 50 facilities and a fleet of more than 900 vehicles, AJEX, which employs 1,500 people, processes and delivers domestic packages. AJEX and DHL eCommerce will continue to run the company together going forward, with DHL eCommerce having a seat on the management board in addition to lending its knowledge of international parcels. The opportunity to raise its interest to a majority stake has also been secured by DHL eCommerce.
With DHL eCommerce, the DHL Group’s four divisions will all be present and actively participating in the market. With the launch of its DHL Express business unit in 1970, DHL made its debut in Saudi Arabia. With specialized services like freight forwarding and contract logistics, the other divisions have also been in business in the nation for a number of years.
The partnership and the transaction are subject to regulatory approvals. Only after receiving approval under the applicable merger control laws will the deal be put into effect.
