Dubai: Aramex splits core businesses as part of reshuffle

Dubai - Company creates a new regional structure; appoints chief strategy officer to head its international expansion and merger and acquisition plans.

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By Reuters

Published: Tue 7 Sep 2021, 11:29 AM

Dubai-listed courier Aramex said on Tuesday it had split its core businesses as part of a reshuffle aimed at capturing growth in the post-Covid-19 transportation and logistics industry.

The company, in which Abu Dhabi-backed investor ADQ last year bought a 22.25 per cent stake, has set up Aramex Express, which will offer deliveries between businesses and consumers, and Aramex Logistics, in charge of business-to-business operations, it said in a statement.

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It has appointed Mohammad Alkhas as chief operating officer (COO) for Aramex Logistics and Alaa Saoudi as COO for Aramex Express.

"The global transportation and logistics industry is undergoing a fundamental shift, driven predominantly by the boom in e-commerce, supply chain disruptions, customers' increasingly discerning expectations and the turbo speed of digitization," Aramex Chief Executive Officer Othman Aljeda said.

"For Aramex to stay ahead of the curve and remain a competitive, reliable and sustainably growing industry leader, we decided to focus on capturing growth opportunities by decoupling our core services."

The express segment of the business accounts for 70 per cent of the group revenues and Aramex said it planned to boost growth by creating new trade lanes domestically and internationally.

It plans to expand its logistics business - which accounts for 28 per cent of revenues - by increasing its presence in core markets and markets that enable trade flow into the Middle East.

A rebound in oil prices is expected to help growth in the freight forwarding business, the statement said.

As part of the reshuffle, the company has created a new regional structure and appointed a chief strategy officer to head its international expansion and merger and acquisition plans.

Reuters

Published: Tue 7 Sep 2021, 11:29 AM

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