Aramex Expands in Iraq with ZK Holding Venture
Aramex partners with ZK Holding to enhance logistics in Iraq.
Summary
Aramex and ZK Holding announce a joint venture to expand logistics services in Iraq, leveraging ZK Holding's extensive network to unlock new trade lanes.
In a strategic move to bolster its presence in the Middle East, Aramex has announced a joint venture with ZK Holding to enhance logistics and courier services in Iraq. This partnership aims to provide fully integrated services, including domestic and international courier, freight forwarding, and contract logistics, supporting both local and international businesses in the region.
The partnership is set to leverage ZK Holding's extensive reach, which includes access to over 7,000 points of sale across Iraq, facilitating smoother logistics operations in more than 15 cities. Operations are expected to commence in the first quarter of 2025, with the joint venture playing a key role in unlocking new trade lanes and enabling businesses to access new markets.
Othman Aljeda, CEO of Aramex, expressed enthusiasm for the partnership, highlighting Iraq's significant market potential. Aljeda stated, 'This partnership will allow us to enhance our offerings, helping to drive trade and economic growth in Iraq and beyond.'
Dr. Zead Khalaf, Chairman of ZK Holding Group, emphasized the ambition for regional expansion and the pivotal role in promoting growth by entering new markets. Khalaf added, 'This collaboration marks a significant step towards expanding our regional presence and diversifying our business portfolio.'
The timing of this initiative is crucial, as Iraq's e-commerce market is projected to grow at a CAGR of 11% between 2024 and 2029, reaching USD 6.3 billion by 2029, according to Statista. By combining Aramex's expertise and global network with ZK Holding's strong local presence, the partnership aims to create a robust logistics ecosystem designed to unlock Iraq's market potential and contribute to its economic development.
For investors, this joint venture represents an opportunity to consider Aramex's position in the growing logistics sector in the Middle East. While the venture promises significant growth potential, the geopolitical and economic landscape in Iraq should be carefully monitored. Based on current information, investors may consider holding their position in Aramex, as the collaboration could yield long-term benefits.
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Summary
Aramex, a global logistics and transportation solutions provider, has formed a joint venture with ZK Holding, an investment company in Abu Dhabi, to enhance logistics and courier services in Iraq. This partnership aims to offer integrated services such as domestic and international courier, freight forwarding, and contract logistics, supporting both local and international businesses. By leveraging ZK Holding's extensive network of over 7,000 points of sale across Iraq, Aramex plans to expand its operations to more than 15 cities, facilitating smoother logistics. The joint venture is set to begin operations in the first quarter of 2025, targeting corporate and retail customers and aiming to unlock new trade lanes and markets. The collaboration comes as Iraq's e-commerce market is projected to grow significantly, and it seeks to create a robust logistics ecosystem to tap into this potential.
