DHL invests in Saudi logistics firm Ajex, securing a partial ownership
In a strategic move to tap into the rapidly growing B2C e-commerce segment in Saudi Arabia and the UAE, DHL eCommerce has announced its expansion plan in the region's e-commerce parcel market. This plan is part of the broader DHL Group's €500 million commitment to the Middle East logistics sector by 2030.
The expansion involves a significant investment and focuses on expanding infrastructure, enhancing technology, and boosting service capacity. DHL aims to stay competitive in the fast-growing B2C parcel delivery segment by expanding its offering in the e-commerce logistics market through the acquisition of a minority stake in regional provider Ajex.
The acquisition will see DHL investing heavily in warehousing, hubs, and last-mile delivery capabilities tailored to the needs of e-commerce and healthcare sectors. Modern logistics technologies and sustainable solutions, such as electric vehicles, will be integrated across its network.
Saudi Arabia's growing role as a key logistics hub, driven by increased online trade and export activity, will be leveraged. The overall logistics infrastructure, including air transport, freight, customs brokerage, and fulfillment services, will be strengthened to support local businesses and global e-commerce players operating in the region.
The partnership aims to deliver reliable, affordable, and sustainable delivery solutions. Ajex, the Saudi Arabian parcel logistics company acquired by DHL eCommerce, employs 1,500 team members and operates over 50 facilities with a fleet of more than 900 vehicles.
The deal marks DHL eCommerce's first entry into Saudi Arabia. Ajex began operations in 2021 as part of Ajlan & Bros Holding. DHL eCommerce has secured an option to increase its interest to a majority stake in Ajex in the future, although the financial details and the exact size of the stake were not disclosed.
The growing e-commerce market in Saudi Arabia is driving expansion in the domestic parcel sector at double-digit rates. The partnership aligns with Saudi Arabia's Vision 2030 initiative, which identifies logistics as one of its key growth pillars.
This strategic move is part of DHL Group's “Strategy 2030,” targeting high-growth regions like the Gulf markets boosted by geopolitical shifts and new trade routes, reflecting the Kingdom's Vision 2030 ambitions for economic diversification and digital transformation. The acquisition of Ajex aligns with DHL eCommerce’s goal to enhance its market position and service offerings specifically in the Saudi e-commerce parcel segment by building on local expertise and networks.
Other DHL Group divisions have been operating in Saudi Arabia since the 1970s. This latest move underscores DHL's commitment to the region and its belief in the potential of the Saudi e-commerce market.
- DHL eCommerce's strategic investment and acquisition of Ajex is a significant step towards expanding its presence in the business sector, specifically focusing on the B2C e-commerce segment and finance of the logistics industry in the Middle East.
- To maintain competitiveness in the fast-growing B2C parcel delivery segment, DHL plans to bolster its infrastructure, technology, and service capacity, and also aims to strengthen its offerings in the e-commerce logistics market through strategic finance and business partnerships.
