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Dubai-listed logistics and courier company Aramex is looking at acquisition opportunities in the GCC and emerging markets this year as it seeks to expand its global footprint and further tap into the growing e-commerce market, its chief executive said.
Partly owned by Abu Dhabi state investor ADQ, the company is also expected to invest in specialised warehouses to cater to high potential industry verticals, such as cold chain, pharmaceuticals, oil and gas and FMCG.
“We see high potential for acquisition in emerging markets, such as North Africa, Turkey and Southeast Asia, and remain on the lookout for acquisition opportunities in the GCC markets,” noted Othman Aljeda, CEO of Aramex, in the company’s annual report released on Thursday.
To cement its position in core markets, the company is looking at increasing the flow from its major hubs in the US, UK Amsterdam, China and Hong Kong, to cater to markets in GCC, wider MENA and Australia. Aramex also intends to drive new trade lanes to further cash in on the growing e-commerce sector.
“We also want to drive new trade lanes across the globe for e-commerce, such as the UK into Europe, Asia and Europe into Oceana and Southeast Asia, Europe into Americas, Asia and MENAT, and Americas into Europe,” said Aljeda.
The company, which operates in more than 650 cities in at least 65 countries worldwide, posted a net profit of 225.3 million dirhams ($61.3 million) for 2021, up by 15 percent from the previous year, while its revenue jumped 10 percent to 6.1 billion dirhams.
Despite the positive performance in 2021, Aljeda noted that margins “remain constrained” due to pandemic-induced costs and increased competition in certain markets.
(Reporting by Cleofe Maceda; editing by Seban Scaria)
