Aramex, DB Schenker Sign MoU for Expansion in Abu Dhabi and MEA Region

UAE's Aramex and Germany-based DB Schenker have announced the signing of a strategic Memorandum of Understanding (MoU) with the aim to drive forward synergistic opportunities in supply chain solutions across multiple critical industries to and from Abu Dhabi and the wider MEA region.

By leveraging DB Schenker’s extensive global experience in specialized freight forwarding solutions across multiple industries, the partnership will seek to further boost Aramex’s capabilities and offerings in the region, including, but not limited to, the aerospace, defense, infrastructure, and healthcare industries.

Conversely, by teaming up with Aramex and capitalizing on its strong brand identity, leadership position, deep knowledge and expertise in the region, DB Schenker will be able to expand its presence more comprehensively in Abu Dhabi, a strategic and growing trade and logistics hub in the MEA region.

Commenting on the MoU, Othman Aljeda, Chief Executive Officer of Aramex, said: “This is a very exciting strategic partnership that has the potential to unlock more value for existing customers while also enabling us to realize our commercial and diversification goals.

Exclusive Video: Aramex - Pandemic Challenges ‘Like Driving in Fog’

"By joining forces with DB Schenker, a global logistics company we regard as truly complementary to ours in the region, we will accelerate the realization of our goals in the freight forwarding business.

"Our alliance will enable Aramex to become a stronger, more competitive player in the sea and air freight forwarding services in Abu Dhabi and other core markets.

"While we are working on the partnership agreement and will update the market in due course on our final agreement, on behalf of the Aramex team, I look forward to working alongside the DB Schenker team.”

Christopher Smith, Chief Executive Officer of DB Schenker, Middle East & Africa, said: “At DB Schenker, we recognize the immense opportunities emanating from Abu Dhabi and the MEA region.

"We believe our alliance with Aramex was a natural choice given their history, expertise, knowledge, and extensive network in the region. I am confident that together, we will be able to grow our footprint in Abu Dhabi and the wider MEA region.

"We are excited about this expansion plan, and we look forward to realizing synergies and scaling our operations in the region to serve our existing major accounts and new potential clients more comprehensively.”

Traditionally Aramex’s freight forwarding business was largely focused on the cyclical Oil & Gas (O&G) sector.

Watch: DB Schenker Further Expands Logistics Footprint in Dubai

While the company will continue to serve this important sector, the energy industry has witnessed lower levels of activities in recent years, which inevitably had a knock-on effect on Aramex’s freight forwarding business.

However, in 2020 the healthcare, pharmaceuticals and FMCG segment helped offset some of the weakness from O&G.

Going forward, the company will continue to strengthen its freight forwarding capabilities through strategic partnerships, investment in technologies and hiring and upskilling the necessary talent.

Watch: Boxing Legend Amir Khan's Exclusive Interview at HOTP Awards