DHL eCommerce expands into the Saudi Arabian e-commerce parcel market
DHL eCommerce the e-commerce logistics specialist of DHL Group, and AJEX Logistics Services have entered into an agreement under which DHL will acquire a minority stake in the Saudi Arabian parcel logistics company.
For DHL eCommerce, whose core business is domestic parcel transport in selected European countries, the USA and certain Asian countries, this agreement represents an expansion into the fast-growing Saudi Arabian e-commerce parcel market. Although AJEX has only been active in Saudi Arabia since 2021, the company has established itself as one of the leading parcel service providers in the rapidly developing domestic market with robust growth as well as a dense delivery network. The agreement was signed at a ceremony in Riyadh attended by Pablo Ciano, CEO DHL eCommerce, Yin Zou, Executive Vice President Corporate Development at DHL Group, Mohammed Bin Abdulaziz Al Ajlan, Deputy Chairman of Ajlan & Bros Holding, and Ajlan Bin Mohammed Al Ajlan, Group Managing Director of Ajlan & Bros Holding.
“As a central component of our ‘Corporate Strategy 2030 – Accelerating Sustainable Growth’, we are focusing on markets such as Saudi Arabia, which have significant growth momentum and strong economic development. We are convinced that AJEX, with its high understanding of quality and strong customer focus, thanks to a highly motivated team and supported by Ajlan & Bros Holding, is the perfect partner to grow our e-commerce-focused parcel business in this booming market. Together, coupled with our international expertise in the parcel business, we will offer reliable, affordable and sustainable delivery solutions,” says Pablo Ciano, CEO DHL eCommerce.
“Saudi Arabia has set itself the goal of promoting economic growth and diversifying its industries as part of Vision 2030, with logistics being one of the central pillars. In this context, we are also experiencing strong growth in e-commerce, which in turn is driving expansion in the national parcel sector. We are seeing an increasing demand for a parcel service provider with local expertise and a global network. By partnering with DHL eCommerce, a globally established e-commerce specialist, we are ideally positioned to meet this demand in the market,” said Ajlan Bin Mohammed Al Ajlan, Group Managing Director of Ajlan & Bros Holding.
With a team of around 1,500 employees, AJEX offers domestic parcel processing and delivery through a dense network that includes more than 50 locations and a fleet of over 900 vehicles. In the future, AJEX will manage the business with DHL eCommerce as a partner, which will not only contribute its expertise in the international parcel sector, but will also be represented on the Management Board. In addition, DHL eCommerce has secured the option to increase its stake to a majority stake.
With DHL eCommerce, all four of the Group’s international business units will be represented in the market in the future. DHL has been active in Saudi Arabia since 1970 with its DHL Express division. The other business units have also been active in the country for several years and offer specialized services such as contract logistics or transport services.
The transaction and the partnership described are subject to regulatory approvals. The transaction will only be implemented after receipt of clearance in accordance with the relevant merger control requirements.
