Friday, May 24, 2024

Aramex: A return to the Syrian market is imminent, as Chinese firms step up competition

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Samer Marei, Aramex’s managing director in the Gulf region, said a return to the Syrian market is very close, pointing out that the company’s legal and compliance teams are currently working on it, without giving a specific date.

Mari said in an interview:CNN Al-Ektisadiya said, “The Syrian market was closed, there were challenges related to the Syrian and Yemeni markets, but things are returning to normal, so we are getting licenses again in both markets.”

Competition in the delivery sector in the Gulf is very strong, especially in relation to e-commerce, especially with the entry of new players led by Chinese companies that have invested heavily in regional markets.

He continued, aside from Aramex’s participation in the “Seamless Middle East 2023” exhibition, “During the Corona pandemic, e-commerce increased as everyone was ordering from home, and we had a capacity challenge at that time.”

He added, “Today, life has returned to normal, people have started going to shopping malls and purchases have reduced amid efforts to save money when talking about electronic shopping, so we have more energy and are trying to compete in more than one. Level and field.”

Competition squeezes prices

Merhi said the coronavirus pandemic has created a lot of competition in the region with companies from China investing heavily in the Gulf region, particularly in Saudi Arabia and the UAE, which are two of the biggest markets. In the Gulf.

“Competition and reduced demand have pushed prices down. Freight rates have clearly come down globally, and there are huge pressures on pricing, especially in e-commerce, which means buying over the Internet,” he said.

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He pointed out that freight rates have come down by 30 to 40 percent, so companies are trying to gain more market share to offset the impact of lower prices.

Drones to deliver cargo

Speaking about the use of “drones” in delivering goods, Murray said, “It is still in the testing phase and we have received approval from many countries like the United Arab Emirates, Saudi Arabia and Oman, and we have started using “drones” for medical purposes and other things that require immediate delivery, such as A few things.”

Commercial operations in the UAE are expected to begin this year, after which most of the Gulf will be covered by the end of next year.

Aramex Results 2023

Regarding the profit for the first quarter of the year, Merhi said, “Everyone in the market has been affected by the price drop and the market is returning to normal compared to last year, which still saw the effects of Corona.”

He added, “The results and profits for this period are related to our ability to manage costs by making services better and cheaper, so we are optimistic about the results for the current year. We hear about many challenges like inflation. We see the world, the Gulf region is growing. “

“Our brand is big enough to protect us and protect our business and our market share in the presence of competitors,” he said.

Aramex operates worldwide through its own companies in 70 countries or through agents in other countries.

Regarding Aramex’s share in the Gulf market, Marei said, “We are one of the market leaders in this region. In Saudi Arabia, which is the largest e-commerce market in the region, for example, during the last Ramadan period, about 400 million exports were delivered, and Aramex’s share was about 30 percent. “

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Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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