Logistics giant DHL Group’s e-commerce unit is acquiring a minority stake in Saudi Arabia's parcel logistics company, AJEX Logistics Services. 

DHL eCommerce signed an acquisition agreement with the Gulf firm, marking the logistics company’s expansion into the kingdom’s parcel market.

“We are focusing on markets like Saudi Arabia that exhibit significant growth dynamics and strong economic development,” said Pablo Ciano, CEO of DHL eCommerce.

The deal is still subject to regulatory approvals.

AJEX handles domestic parcel processing and delivery through an extensive network that includes more than 50 facilities and a fleet of over 900 vehicles.

The logistics giant first entered Saudi Arabia in 1970, when it set up its DHL Express business unit. The company also operates other divisions in the kingdom, providing specialised services, including contract logistics and freight forwarding solutions.

(Writing by Cleofe Maceda; editing by Seban Scaria) seban.scaria@lseg.com