DHL eCommerce has finalised its entry into the Saudi Arabian market with the investment in a minority stake of parcel logistics firm AJEX Logistics Services.
DHL said the move marks a ”significant milestone” in its expansion into the ”rapidly growing” Saudi Arabian parcel market and AJEX’s expansion across the Middle East.
The deal was first announced earlier this year.
“The strategic partnership positions DHL eCommerce and AJEX to capitalise on the anticipated double-digit growth in Saudi Arabia’s e-commerce sector, a key pillar of the Kingdom’s Vision 2030, as well as across the broader Middle East region,” the two said in a press release.
AJEX, which is backed by investment firm Ajlan & Bros Holding, has a network of over 60 facilities, 1,200 vehicles and a team of 2,000 professionals in Saudi Arabia and the wider Middle East region.
Following the deal, AJEX will be branded as 'AJEX, a partner of DHL eCommerce'.
DHL is now represented in the country by its eCommerce, Express, Supply Chain, and Global Forwarding business units.
Following the deal, DHL eCommerce will contribute its expertise and have representation on the management board. It also has the option to increase its interest to a majority stake in the future.
The move comes as part of DHL’s strategy to invest more than €500m in its Middle East operations as a reflection of the region’s growing strategic importance.
“The AJEX-DHL partnership will play a crucial role in powering the e-commerce boom across Saudi Arabia and the wider Middle East, supporting core high-growth sectors, and helping to drive broader industry development,” said Ajlan Mohamed Al Ajlan, group managing director of Ajlan & Bros Holding Group.
Mohammed Albayati, group chief executive of AJEX, added: “The acquisition of a minority stake by DHL eCommerce in AJEX marks a major milestone in our growth. A testament to the market credibility we have earned thanks to the speed and precision of our services, we are now ready to enter the next phase of growth.”
