2023-05-26 14:08:22
Samer Marei, Executive Director of Aramex in the Gulf region, said that the 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 with “CNN Al-Eqtisadiah,” that “the Syrian market was closed, and there were challenges related to the Syrian and Yemeni markets, but things are returning to normal, and therefore we are obtaining licenses again in the two markets.”
He stressed that the competition in the delivery sector in the Gulf is very strong, especially with regard to e-commerce, especially with the entry of new players led by Chinese companies that have invested heavily in the region’s markets.
He continued, on the sidelines of Aramex’s participation in the “Seamless Middle East 2023” exhibition, that “during the Corona pandemic, e-commerce increased because everyone was making orders from home, and we had a capacity challenge at that time.”
He added, “Today, life has returned to normal, and people have begun to visit shopping centers and purchases have declined amid attempts to save money when talking about electronic shopping, and therefore we have additional energy and are working to compete on more than one level and field.”
Competition presses prices
Merhi said that the Corona pandemic created a lot of competition in the region through companies that came mainly from China, as companies moved from China to invest strongly in the Gulf region, especially in Saudi Arabia and the UAE, as they are the two largest markets in the Gulf.
“Competition and declining demand have pushed prices down. Freight rates globally have clearly declined, and there are great pressures on pricing margins, especially with regard to e-commerce, that is, buying via the Internet,” he said.
He pointed out that freight rates have fallen between 30 and 40 percent, and therefore companies are trying to gain more market share to compensate for the impact of lower prices.
Drones to deliver shipments
Marei spoke about the use of “Drones” in delivering shipments, saying, “It is still in the testing phase and we have obtained approvals from several countries such as the UAE, Saudi Arabia and Oman, and we have started using “Drones” in certain matters such as medical purposes and other things that need immediate delivery.”
It is expected that commercial operations will begin during the current year in the UAE, after which most of the Gulf will be covered by the end of next year.
Aramex Results 2023
On the profits of the first quarter of the year, Merhi said, “Everyone in the market was affected by the decline in prices, and the market is returning to normal compared to last year, which was still witnessing the effects of Corona.”
He added, “The results and profits during this period are related to the efficiency of managing expenses by making services smarter and less expensive, and therefore we are optimistic about the results for the current year. While we hear about many challenges such as inflation in the world, we notice that the Gulf region is witnessing growth.”
“Our brand is big enough to protect us and preserve our business and our market share in front of competitors,” he said.
Aramex operates around the world, either through companies it owns in 70 countries or through agents in other countries.
Regarding Aramex’s share of the Gulf market, Marei said, “We are one of the market leaders in the region. In Saudi Arabia, which is the largest e-commerce market in the region, for example, during last Ramadan, about 400 million shipments were delivered, and Aramex’s share was about 30 percent.”
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