As part of its efforts to expand into the rapidly growing Saudi Arabian e-commerce parcel market, DHL eCommerce has acquired a minority stake in the Saudi Arabian parcel logistics company AJEX Logistics Services.
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.
“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,” explained Pablo Ciano, CEO of DHL eCommerce.
“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.”
Ajlan Bin Mohammed Al Ajlan, group managing director of Ajlan & Bros Holding, added, “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.”
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.