What DHL's Investment in AJEX Means for Saudi Logistics

DHL eCommerce has officially finalised its minority stake acquisition in AJEX Logistics Services. 

This marks the expansion of DHL into the growing Saudi Arabian parcel market, as well as AJEX's expansion across the Middle East.

The partnership will be beneficial to both companies, bringing about expertise and recognition from around the world, developing global supply chains. 

A logistics expansion

DHL is the world's leading logistics company, serving over 220 countries and territories every day, with more than 600,000 employees around the world. 

Founded in 1969, in San Francisco, this company has expanded dramatically, becoming a well-known and trusted service. 

It is comprised of an international team of supply chain specialists, business professionals and IT experts dedicated to helping people grow their businesses or reach their loved ones.

AJEX Logistics Services is the logistics and transport specialist in the Middle East, offering a range of customer-centric solutions from express distribution, warehousing and airfreight. 

It was founded in 2021 and is backed by Ajlan & Bros Holding. 

AJEX aims to be the the number one provider of end-to-end innovative logistics solutions which enables sustainable trade and develops connections between the Middle East and the rest of the world. 

Now, DHL has completed its minority stake acquisition in the Saudi logistics company, demonstrating DHL's expansion and AJEX's growth. 

"By combining regional expertise with global reach, this partnership is set to elevate standards of efficiency and reliability across the region's delivery sector and contribute to critical Saudi Vision 2030 goals," says Ajlan Mohamed Al Ajlan, Group Managing Director of Ajlan & Bros Holding Group.

"United by shared values of customer-centricity, innovation, and teamwork, 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."

A strategic partnership

This partnership is part of the Kingdom's Vision 2030 - also known as Saudi Vision 2030 - which is a government programme launched to increase economic, social and cultural diversification. 

It entails the support for businesses of all sizes, welcoming their growth and supporting their progress. 

The minority acquisition creates a diversified logistics sector, putting more money into the Saudi-based AJEX and welcoming a stronger foothold for DHL. 

It is a strategic partnership which will enable both companies to capitalise on an expected double-digit growth in Saudi Arabia's eCommerce sector.

"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," adds Mohammed Albayati, Group CEO of AJEX.

"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." 

Supply chain investments

Since 2021, AJEX has already created a network of more than 60 facilities, 1,200 vehicles and a team of 2,000 employees.

The company's local recognition and rapid expansion, teamed with DHL's global reach and operational know-how, will help customers around the world benefit from this partnership.

Through the acquisition, both companies will be able to diversify their supply chains, allowing them to adapt.

DHL eCommerce will be able to increase its stake to a majority position if it wishes to in the future, with a role on the management board at AJEX.

This provides an opportunity for both companies to gain insights into each other's specialities and knowledge, as well as access to more resources. 

Pablo Ciano, CEO of DHL eCommerce says: "As part of our Strategy 2030 'Accelerate Sustainable Growth', DHL Group is investing EUR 500m (US$583.7m) in high-potential markets like Saudi Arabia.

"The customer-centric approach and strong regional presence of AJEX, combined with DHL's global expertise, will enable us to deliver reliable, affordable, and sustainable parcel solutions across the region."

With this merger, DHL eCommerce now has a presence in Saudi Arabia, meaning exciting things are ahead for the company.

Moreover, AJEX is changing its branding to 'AJEX, a partner of DHL eCommerce', celebrating the partnership as a great opportunity for growth.