Overview of Aramex
Aramex (DFM: ARMX) is committed to increasing shareholder value through a growth strategy aimed at propelling the company into the front ranks of the global transportation and logistics solutions sector.
As a leading global provider of comprehensive logistics solutions, Aramex employs more than 8,100 people in over 310 locations around the globe and offers a range of services that includes international and domestic express delivery, freight forwarding, logistics and warehousing, documents managements and consumer retail services.
Aramex is a founding member and chairs the Global Distribution Alliance (GDA), which brings together over 40 leading express and logistics providers in more than 240 countries, each specializing in their own region and together covering the world with the same, unified quality standards and technology of Aramex.
Agile Business Model
Aramex’s unique, asset-light business model has resulted in faster annual growth rates than its global competitors. The company’s consistent track record of double-digit increase in net profits, even during the global economic recession of late-2000s, is due to the adaptability of its business model, the experience of its management team and the entrepreneurial spirit of its people.
Aramex maintains a very healthy balance sheet with a cash balance of AED 502 million as of December 31, 2009, coupled with an extremely low debt-to-equity ratio of 1.4%.
The company’s strong cash position is ideally placed to support its development and expansion plans.
We aim to employ the following major principals to insure sustainable growth:
- Geographical expansion through acquisitions in key markets that are main pillars in global trade, such as China and United States.
- Globalizing the brand through franchising in emerging markets, particularly Africa, Southeast Asia and the Commonwealth of Independent States
- Leveraging existing infrastructure and expanding the products range; integrating supply chain management and document storage business into existing Aramex locations within the Middle East and Southeast Asia.
- Organic growth by capitalizing on the company’s reputation as a quality service provider offering a one-stop shop of transportation and logistics solutions.
- Continued emphasis on technology to increase the efficiency of operations, enhance the quality of service, increase sales and foster growth
- Promoting entrepreneurship by supporting SMEs and start-up and facilitating E-commerce to encourage growth in trade.
History and Development
- 1982: Established as express wholesaler to US-based express delivery companies
- 1990: Co-founded an alliance of independent global express companies that functioned as a worldwide delivery network for its members to compete with larger companies.
- 1994: Pioneered a revolutionary service concept becoming the first company to offer express, domestic, and freight forwarding services under one roof.
- 1997: Became the first Arab-based company to trade its shares on the NASDAQ stock exchange.
- 2002: Went back to private ownership through a leveraged management buyout.
- 2003: Co-founded the Global Distribution Alliance (GDA) and the World Freight Alliance (WFA) and launched a state-of-the-art in-house developed global tracking system.
- 2005: Went public on the Dubai Financial Market in a record breaking IPO with its shares traded under (ARMX).
Aramex’s commitment to sustainable business practices is a reflection of its values and corporate culture. In 2006 Aramex set a regional example by releasing the first Sustainability Report in the Arab world, in which it has set a goal to become the first carbon neutral global logistics and transportation company in the world.
Our definition of sustainability management is the integrated development and growth of our economic, environmental, and social performance in a manner that optimizes value for all our stakeholders.