FedEx picks Middle East firm as global logistics partner
January 7, 2015
FedEx Express has selected Abdul Latif Jameel Group as its global service provider in Saudi Arabia as of this month for international inbound and outbound services to and from 220 countries and territories.
Established in 1945, Abdul Latif Jameel Group is a family-owned diversified business with dual headquarters in Jeddah, Saudi Arabia, and Dubai, UAE. The group’s geographic footprint extends to 17 countries in the Middle East, North Africa, Turkey, Asia-Pacific and Europe.
“Our group’s 60 years of logistics experience, combined with our customer-centric approach, are the pillars that will support FedEx Express in becoming the premier transportation provider in the country, and a vital contributor to the Saudi Arabian economy,” said Mohammed Abdul Latif Jameel, chairman and president of Abdul Latif Jameel Group.
FedEx has been active in Saudi Arabia for more than 20 years and the selection of Abdul Latif Jameel Group will let the logistics company use the Saudi conglomerate’s market expertise to meet growing shipping needs. The country’s demand for international cargo is expected to grow by 5% and 7 to 8% for air and sea cargo, respectively, by 2020.
“This strategic relationship with Abdul Latif Jameel Group aligns with our customer-first philosophy that defines our commitment to make every FedEx experience outstanding,” said David Ross, senior vice-president of FedEx Express’ Middle East, Indian and African operations. “Together, we will grow the business and deliver excellent service to customers. As a large contributor to international trade, our current and prospective customers will continue to benefit from world-class shipping, access and enhanced connectivity.”
According to Saudi Arabian General Investment Authority (SAGIA), more than US$100bn of investment is anticipated within Saudi Arabia’s transportation and logistics sector over the next ten years, providing a natural catalyst for spurring international trade.
Saudi Arabia’s large-scale infrastructure development and location straddling east and west position the country as one of the world’s leading global transport and logistics hubs with a rapid growth economy attracting foreign investment.
Abdul Latif Jameel Group is best known for its core automotive operations and associated value chain businesses, which had their origin in the group’s appointment as an authorised distributor for Toyota in Saudi Arabia in 1955. Since then, the group has diversified into financing, parts manufacturing, electronics distribution, advertising, media and events. In 2012, it further diversified into several sectors, including energy, with an initial focus on renewables, and residential and commercial real estate development.
The group employs about 15,800 people globally.