DHL eCommerce expands presence in Saudi Arabia with AJEX investment
SAUDI ARABIA – DHL eCommerce, a division of DHL that specializes in e-commerce logistics and cross-border solutions, has taken a significant step to strengthen its presence in the Saudi Arabian logistics market by acquiring a minority stake in AJEX Logistics Services.
The agreement aims to enhance parcel delivery services in the rapidly growing e-commerce sector of the kingdom.
The announcement was made on Monday, with DHL eCommerce confirming the deal’s role in expanding its reach in Saudi Arabia. The country has witnessed remarkable growth in online shopping, driving the demand for efficient parcel services.
“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,” DHL stated.
Executives from both companies attended the signing ceremony, including Pablo Ciano, CEO of DHL eCommerce, and Mohammed Bin Abdulaziz Al Ajlan, deputy chairman of Ajlan & Bros Holding.
Ciano emphasized the importance of Saudi Arabia as a key market under DHL’s Strategy 2030 Accelerate Sustainable Growth plan. “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,” he said.
He added that by leveraging DHL’s international expertise in parcel operations, they would work together to provide reliable, affordable, and sustainable delivery solutions.
Saudi Arabia’s Logistics Growth
Saudi Arabia has been prioritizing logistics as part of its broader economic plans under Vision 2030. The country aims to develop its transport and logistics sectors to support economic diversification.
“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,” said Ajlan Bin Mohammed Al Ajlan, group managing director of Ajlan & Bros Holding.
He further noted that by partnering with DHL eCommerce, a globally trusted e-commerce specialist, they would be in a strong position to meet future demand.
AJEX has built a strong operational network with over 1,500 employees and a fleet of more than 900 vehicles. It will continue to manage its domestic parcel services while DHL eCommerce brings its international expertise.
The deal includes an option for DHL to increase its stake in AJEX over time, subject to market conditions and regulatory approvals.
DHL’s growing investments in emerging markets
DHL eCommerce’s expansion into Saudi Arabia follows its broader strategy of growing its footprint in emerging markets. The company has been increasing its presence across Africa as well.
In West Africa, DHL Express Sub-Saharan Africa CEO Hennie Heymans highlighted the company’s commitment to expanding in the region due to rising intra-Africa trade.
The company has also been actively involved in Rwanda’s Bugesera Special Economic Zone, an initiative aimed at attracting foreign investment and boosting trade.
Furthermore, DHL Global Forwarding has extended its reach across the Southern African Development Community (SADC) region, giving businesses improved access to global markets.
These moves reflect DHL’s ongoing commitment to supporting economic growth by investing in logistics infrastructure in high-potential regions.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
