DHL eCommerce is entering the Saudi Arabian market through a stake acquisition with parcel logistics company AJEX Logistics Services.

The logistics giant announced that it has reached an agreement for DHL to acquire a minority stake in AJEX.

"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," DHL said in a statement.

Although AJEX started its operations in 2021, it has quickly established itself as a leading parcel service provider in the rapidly evolving domestic market, with robust growth and an extensive distribution network.

"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," said Pablo Ciano, CEO of DHL eCommerce.

"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 added.

Ajlan Bin Mohammed Al Ajlan, group managing director of Ajlan & Bros Holding, noted that Saudi Arabia is dedicated to fostering economic growth and diversifying its industries under Vision 2030, with logistics serving as one of the key pillars.

"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," he added, noting that by partnering with DHL eCommerce, the company will be well-positioned to meet this demand in the future.

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.

DHL said the deal and the outlined partnership are contingent upon regulatory approvals. The transaction will only be implemented after obtaining clearance under the relevant merger control legal requirements.