DHL eCommerce has entered the Saudi Arabian parcel logistics market through a joint venture with AJEX Logistics Services, acquiring a minority stake in the rapidly growing firm.
The deal marks DHL eCommerce’s first foray into Saudi Arabia, leveraging AJEX’s domestic expertise and infrastructure to expand in one of the region’s fastest-growing e-commerce markets.
Despite launching operations only in 2021, AJEX has quickly positioned itself as a leading parcel service provider, boasting a network of over 50 facilities, a fleet of more than 900 vehicles, and 1,500 employees.
“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 said in a statement.
Under the agreement, DHL eCommerce will provide expertise and gain representation on AJEX’s management board, with an option to increase its stake to a majority share in the future.
DHL eCommerce CEO Pablo Ciano emphasized that Saudi Arabia is a key focus under DHL’s Strategy 2030, which aims to accelerate sustainable growth in emerging markets.
“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.”
Saudi Arabia is prioritizing logistics as a key pillar of its Vision 2030 economic diversification strategy, with a growing emphasis on e-commerce and parcel delivery services.
While this is DHL eCommerce’s first entry into Saudi Arabia, DHL Group has had a presence in the country since 1970 through DHL Express, along with contract logistics and freight forwarding operations.
The joint venture positions DHL eCommerce to capitalize on Saudi Arabia’s booming digital economy, further solidifying the Kingdom’s role as a regional logistics hub.