DHL ECommerce Acquires Minority Stake In Ajex Logistics Services To Capitalize On Saudi Arabia's ...

is 10% what happens to you and 90% how you react to it." As we navigate the ever-changing landscape of global commerce, one thing is clear: adaptability is key. In a move that promises to shake up the Middle Eastern parcel market, DHL eCommerce has completed its acquisition of a minority stake in Ajex Logistics Services. This strategic partnership not only solidifies DHL's foothold in Saudi Arabia but also paves the way for Ajex to expand its reach across the region.

With a $570 million expansion plan in place, DHL Group is poised to make a significant impact on the Middle Eastern market, encompassing its Express, Forwarding, and Supply Chain divisions. The Saudi Arabian e-commerce sector is ripe for growth, with anticipated double-digit expansion driven by the country's young, digitally savvy population - 63% of whom are under 30. As the Kingdom continues to diversify its economy, away from fossil fuel extraction, e-commerce is set to play a vital role.

With a projected annual retail growth rate of 4. 6% through 2027, the stage is set for Ajex and DHL to capitalize on this trend.

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Background Document: Ajex Logistics Services and DHL eCommerce Partnership** Ajex Logistics Services, a domestic and regional parcel provider, was established in 2021 with a vision to cater to the growing demands of the Saudi Arabian parcel market. Owned by Ajlan & Bros. Holding Group, the company has rapidly expanded its operations, boasting a network of over 60 facilities, 1,200 vehicles, and 2,000 employees.

This remarkable growth trajectory has been marked by a 20-30% increase in facilities, vehicles, and employees since the start of the year. The company's achievements can be attributed to its strategic partnership with DHL eCommerce, which has acquired a minority stake in Ajex Logistics Services. This deal, part of DHL Group's $570 million expansion plan in the Middle East, aims to capitalize on the anticipated double-digit growth in Saudi Arabia's e-commerce sector.

The partnership enables Ajex to leverage DHL's expertise and international reach, providing its customers with faster, smarter, and more innovative delivery services. The Saudi Arabian e-commerce sector is poised for significant growth, driven by the country's young, digitally savvy population and projected annual retail growth of 4. 6% through 2027.

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Business and E-commerce Acquisition

The e-commerce landscape is undergoing a significant transformation, driven by the increasing demand for seamless and efficient logistics solutions. As online shopping continues to rise, companies are investing heavily in digital infrastructure to stay ahead of the competition. This shift has led to a surge in acquisitions and partnerships, as businesses seek to expand their capabilities and reach new markets.

One notable example is the growing trend of logistics companies acquiring e-commerce platforms, enabling them to offer end-to-end solutions to their customers.

By doing so, these companies can provide a more streamlined and integrated experience, from order fulfillment to delivery. The Middle East and North Africa (MENA) region is emerging as a key hub for e-commerce growth, with countries such as Saudi Arabia, Egypt, and the United Arab Emirates driving this trend.

The region's young population, increasing internet penetration, and rising disposable incomes are all contributing factors.

As a result, companies are investing heavily in digital infrastructure, including logistics and payment systems, to support the growth of e-commerce. This investment is expected to pay off, with the MENA e-commerce market projected to reach $54 billion by 2025. The rise of e-commerce has also led to an increase in demand for specialized logistics services, such as same-day delivery and cold chain logistics.

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DHL eCommerce has officially completed its acquisition of a minority stake 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.