DHL eCommerce buys stake in AJEX, enters Saudi market
DHL eCommerce, the e-commerce logistics specialist of DHL Group, and AJEX Logistics Services, have entered into an agreement in 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 United States, and certain key Asian countries, this agreement represents an expansion into the rapidly growing Saudi Arabian e-commerce parcel market, a statement said.
Although AJEX only began its operations in 2021, it has already established itself as a leading parcel service provider in the rapidly evolving domestic market, with robust growth and an extensive distribution network. The agreement was signed during a ceremony attended by Pablo Ciano, CEO of 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 key component of our corporate Strategy 2030 'Accelerate Sustainable Growth' we are focusing on markets like Saudi Arabia that exhibit significant growth dynamics and strong economic development. We are confident that AJEX, with its commitment to quality and strong customer focus, supported by a highly motivated team and backed by Ajlan & Bros Holding, is the perfect partner to help us expand our e-commerce-focused parcel business into this booming market. Together, leveraging our international expertise in parcel operations, we will deliver reliable, affordable, and sustainable delivery solutions," stated Pablo Ciano, CEO of DHL eCommerce.
'Saudi Arabia is dedicated to fostering economic growth and diversifying its industries under Vision 2030 with logistics serving as one of the key pillars. In this context, we are also witnessing strong growth in e-commerce, which in turn is driving expansion in the domestic parcel sector. The demand for a parcel service provider with local expertise and a global network is steadily rising. By partnering with DHL eCommerce, a globally trusted e-commerce specialist, we will be well-positioned to meet this demand in the future,' stated Ajlan Bin Mohammed Al Ajlan, Group Managing Director of Ajlan & Bros Holding.
With 1,500 team members, AJEX provides domestic parcel processing and delivery through an extensive network that includes over 50 facilities and a fleet of more than 900 vehicles. Moving forward, AJEX will continue to lead the business in partnership with DHL eCommerce, which will not only contribute its expertise in the international parcel sector but also have representation on the management board. Additionally, DHL eCommerce has secured the option to increase its interest to a majority stake.
With DHL eCommerce, all four divisions of DHL Group will be represented and actively engaged in the market. DHL first established its presence in Saudi Arabia in 1970 with its DHL Express business unit. The other divisions have also been operating in the country for several years, providing specialised services such as contract logistics and freight forwarding solutions.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Tribune
6 hours ago
- Daily Tribune
Stocks slide as Trump, Xi speak amid trade tensions
Stocks markets slid yesterday after US President Donald Trump and Chinese leader Xi Jinping spoke amid their trade war, while the European Central Bank signalled an end to its rate-cut cycle. Wall Street's major indices rose modestly as trading got underway, but had trouble holding onto the gains and soon slid into the red. Chinese state media reported that Xi had held a widely anticipated call with Trump, with investors hoping it could ease trade tensions -- but no details were provided. The call follows officials from the world's two biggest economies accusing each other of jeopardising a trade war truce agreed last month in Geneva. 'The stock market has traded more timidly of late... mindful that there are a number of loose ends out there on the tariff front, not the least of which is the direction the US-China trade relationship is headed,' said analyst Patrick O'Hare. After his return to the White House Trump launched a tariffs blitz, introducing a 10 percent minimum tariff and higher rates on many countries, with China subject to the highest rates. Some of the higher rates have been suspended as negotiations are underway. European stock markets were also in the red even though the ECB cut its key deposit rate a quarter point to two percent, as expected. It was its eighth reduction since June last year when it began lowering borrowing costs. But ECB President Christine Lagarde stated the central bank is 'getting to the end' of the rate cutting cycle, as inflation has largely dropped to its two percent target in the 20-nation currency bloc. That sent the euro surging against the dollar and European stocks gave up gains. The ECB's series of cuts stands in contrast to the US Federal Reserve, which has kept rates on hold recently amid fears that Trump's levies could stoke inflation in the world's top economy. Investors are now looking to the release on Friday of US non-farm payrolls data, which the Fed uses to help shape monetary policy. Other data released this week has been mixed. April jobs openings data beat expectations, but according to payroll firm ADP private-sector jobs rose by only 37,000 last month. This was a sharp slowdown from April's 60,000 and less than a third of the amount forecast in a Bloomberg survey. Another survey showed activity in the US services sector contracted in May for the first time since June last year.
Gulf Insider
a day ago
- Gulf Insider
US Refuses Air Cover For European 'Reassurance Force' In Postwar Ukraine
The British and French-led effort to establish a 'coalition of the willing' to stand up to Russia and defend Ukraine just hit another major roadblock, as Bloomberg is reporting Wednesday the US has effectively vetoed a plan to provide American air defenses to back a 'reassurance force' for postwar Ukraine. British Prime Minister Keir Starmer has been insisting that US-backed air defenses are key to any future permanent settlement plans for ending the war. Western proposals for ending the war have all featured foreign-backed and monitored security guarantees for Ukraine. On this, Starmer had said back in February that 'There must be a US backstop' and that the 'US security guarantee is the only way to effectively deter Russia from attacking Ukraine again.' After Western billions already sunk into keeping Ukraine's military and civic infrastructure afloat, the UK and France are also seeking from President Trump pledges of future air power, and border surveillance and intelligence. The Europeans also envision a strong, permanent security bulwark backed by the United States along NATO's eastern flank. Yet, President Trump has repeatedly warned allies that if NATO countries don't pay their fair share they won't be protected. This despite European leaders as well as some US politicians expressing recent concern that the Atlantic alliance is becoming weaker than ever, and that Article 5 collective defense is in peril. Trump has lashed out at NATO countries for not even meeting their current two percent spending goal while the unfair burden has long fallen United States. 'We appreciate the work that the allies, particularly France and the United Kingdom together with Germany and others have undertaken to develop the coalition of the willing,' US Ambassador to NATO Matthew Whitaker said at a press breifing Brussels on Wednesday. 'We are counting on all our European allies to continue taking the leadership position in contributing military resources and providing the political capital to make security guarantees a reality.' All of this comes as it was only on Tuesday that Dutch slapped down a proposal to increase defense spending to 3.5% of gross domestic product (GDP), key to NATO's capability targets, in a non-binding motion. Click here to read more…
Gulf Insider
a day ago
- Gulf Insider
European Industry Under Siege: China Deploys Rare Earths As Economic Weapon
As U.S. tariffs tighten the screws on China's export machine, Beijing is striking back—with strategic precision. Export restrictions on rare earths are now Beijing's latest move to break down European trade barriers and push back against escalating pressure from Washington. In today's global trade standoff, the gloves are off. The U.S. is wielding its market clout—25% of global consumption originates from the American domestic market. Anyone in the export business must deal with the United States. China, meanwhile, holds an unchallenged monopoly on rare earths—and is making it clear it will not hesitate to weaponize that dominance. The stakes are rising, and national interests now override globalist courtesies. No Friends—Only Alliances Europe is learning the hard way: in geopolitics, there are no friends, only temporary alliances. China's tightened export controls on rare earth elements risk plunging Germany's industrial sector into a severe resource crisis. With nearly 85% of global rare earth refining under its control, Beijing is the chief supplier of key metals like dysprosium, terbium, and yttrium—critical for electric motors, medical tech, and defense systems. Since April 2025, access to these raw materials has been restricted to licensed exporters only—a de facto embargo. The fallout is immediate: several German manufacturers have already been forced to scale back operations. Others face complete shutdowns. Industrial metal prices continue climbing, and the fragility of global supply chains is now exposed in brutal detail. Europe's resource dependency is becoming a major liability—and a strategic weakness in the coming trade war negotiations. Target: New Markets China's export curbs are a calculated pressure tactic in its standoff with both the U.S. and EU. Beijing is feeling the squeeze from the Trump administration's hardline trade policy. If Washington fails to shrink its massive trade deficit and restore U.S. industrial capacity, Trump's economic agenda is toast. Beijing faces its own nightmare scenario. To appease U.S. demands and cut trade surpluses, it would need to let the yuan rise—risking domestic unrest. A more affluent middle class might start demanding political influence. That's a nightmare for China's authoritarian elite. At the same time, the economic foundation of Communist Party rule is crumbling. China's domestic economy is faltering, its real estate and industrial sectors flashing recession signals. The Party's once-effective social contract—'stay out of politics and we'll deliver prosperity'—is losing credibility amid youth unemployment and economic stagnation. Click here to read more…
