DHL eCommerce has officially completed its acquisition of a minority stake in Ajex Logistics Services, giving it a larger foothold in the rapidly growing Saudi Arabian parcel market and enabling Ajex to expand in the Middle East.
DHL announced in February that it planned to invest in Ajex Logistics, which is owned by Ajlan & Bros. Holding Group. The deal is part of a $570 million expansion plan by DHL Group in the Middle East to include its Express, Forwarding and Supply Chain divisions.
DHL said the Ajex deal allows it to capitalize on anticipated double-digit growth in Saudi Arabia’s e-commerce sector, a key component of the Kingdom’s plan to diversify the economy from fossil fuel extraction. Saudi Arabia’s young population — 63% of its people are under 30 and digital natives — and projected annual retail growth of 4.6% through 2027 are key factors behind growth projections for e-commerce.
Ajax started operations in 2021 and quickly established itself as a domestic and regional parcel provider with a network of more than 60 facilities, 1,200 vehicles and 2,000 employees. Those figures are up 20% to 30% across all three categories since the start of the year. DHL eCommerce said its expertise and international reach will make it easier for Ajex customers to ship packages around the world.
“For our customers across Saudi Arabia and the Middle East region, this means access to faster, smarter, and more innovative delivery services, powering the region’s fast-growing e-commerce markets,” said Mohammed Albayati, Group CEO of Ajex, in a news release.
Under the partnership, DHL eCommerce will have representation on Ajex’s management board and holds options to increase its stake to a majority position in the future.
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Write to Eric Kulisch at ekulisch@freightwaves.com.
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