Saudi Aramco and DHL Supply Chain have signed a shareholders’ agreement for a new Procurement and Logistics Hub in Saudi Arabia, to enhance supply chain efficiency and sustainability, Aramco said in a statement on Monday. According to Aramco, it would be the region’s first such hub catering to customers in the industrial, energy, chemical and petrochemical sectors. The joint venture aims to be operational in 2025 and provide reliable end-to-end integrated procurement and supply chain services for companies across the industrial, energy, chemical and petrochemical sectors. The joint venture would initially focus on Saudi Arabia, with aspirations to expand across the MENA region, said the statement. Aramco’s preeminent energy and industrial supply chain ecosystem and DHL’s world-class logistics expertise are expected to enable the joint venture to add value in meeting customers’ supply chain purchasing, warehouse and inventory management, transportation and reverse logistics needs. The aim is for the joint venture to achieve industry best practices in procurement and supply chain management, as well as the deployment of more sustainable supply chain, transport and warehousing solutions. “By combining the exceptional energy, chemicals and industrial supply chain ecosystem of Aramco with the world-class shipping and logistics expertise of DHL, we aim to enable the Procurement and Logistics Hub joint venture to serve as a one-stop hub for customers’ supply chain needs,” said Aramco President & CEO Amin H. Nasser. He expected the joint venture to accelerate growth across Saudi Arabia and MENA. DHL Supply Chain CEO Oscar de Bok said: “DHL intends to foster its business operations and logistics networks throughout Saudi Arabia and the MENA region while expanding our industrial footprint.” “By working in partnership with Aramco, we aim to provide regional and multinational businesses from these sectors access to a robust international logistics network, fostering positive economic growth while promoting sustainable activities." Through state-of-the-art technologies, the joint venture is expected to allow businesses to reduce costs, maximize efficiency and harness digitalization. It represents the culmination of several years of cooperation between the two companies, and aims to transform inventory and logistics management, expand business, create jobs and enable economic diversification in Saudi Arabia and MENA.