Dubai's Aramex splits core businesses as part of reshuffle

  • 9/7/2021
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DUBAI (Reuters) - 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% 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. 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% 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% 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. Reporting by Davide Barbuscia; Editing by Rashmi Aich Our Standards: The Thomson Reuters Trust Principles.

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