Aramex, the Middle East’s biggest courier company, said the global economic recovery and higher oil prices will boost the growth of logistics and freight-forwarding business in 2022, as it reported a 47 per cent jump in third-quarter net profit.
Net profit attributable to shareholders for the three-month period to the end of September increased to Dh67.8 million ($18.5m), compared with the same period last year, Aramex said in a statement on Sunday to the Dubai Financial Market, where its shares are traded.
Revenue was little changed at Dh1.46 billion, compared with Dh1.466bn in last year's third quarter, driven by double-digit growth in domestic express and a strong rebound in logistics and freight-forwarding business.
"Over the last few months, we have witnessed an almost complete return to [a] pre-Covid operating environment and are noticing a few trends that we believe will continue to shape the future of our business and drive our growth strategy," Aramex group chief executive Othman Aljeda said.
While global sea freight issues are disrupting supply chains, the impact on Aramex's business "has so far been manageable" and it expects these issues will be resolved in the coming few quarters, Mohammad Alkhas, chief operating officer of Aramex's logistics and freight-forwarding unit, said.
Land freight movement has improved considerably, and we are benefitting from increased capacity," Mr Alkhas said.
Aramex's new operational structure that was adopted in September is reflecting positively in its performance, Mr Aljeda said. The new structure split its core businesses into Aramex Express and Aramex Logistics to capture a greater market share of the global logistics industry.
“With a renewed emphasis on enhancing operating efficiencies, improving service levels to customers, building scale and [the] reorganisation of our team of professionals, we have been able to capture growth opportunities in both the courier business and [the] logistics and freight-forwarding business," he said.
The company's courier business, which includes international express and domestic express, posted a six per cent year-on-year decline in third quarter revenue to Dh997.4m. However it's up 13 per cent in the first nine months of the year.
Domestic express revenue grew 13 per cent, with shipping volumes driven by an increase in the number of retailers tapping into online sales. It's up 14 per cent over the nine-month period.
Operations in Saudi Arabia, the Arab world's largest economy, are posting "very strong growth" as Aramex presses on with its expansion in the kingdom, the company said.
"We are very encouraged by the recovery in economic activity in the GCC and around the world, and believe this growth will be sustained for the foreseeable future," Mr Alkhas said.
The improved oil prices and pick-up in activity within the oil and gas sector has encouraged GCC governments to increase investment and expenditure in key projects, he said.
"Collectively, these factors have supported the growth of the logistics and freight-forwarding business, and we expect this growth momentum to continue well into 2022."
Oil prices are at multi-year highs and have rallied more than 60 per cent since the start of the year.
Aramex is "very well prepared" to handle the expected surge in volumes as it approaches the busiest period for the courier business during the holidays, Mr Aljeda said.
"We believe we will continue to unlock opportunities and build scale while remaining agile, asset light and financially flexible," he said. "We will also further diversify and strengthen our global network to remain resilient to economic cycles and supply chain disruptions.”
Where to donate in the UAE
The Emirates Charity Portal
You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.
The General Authority of Islamic Affairs & Endowments
The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.
Al Noor Special Needs Centre
You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.
Beit Al Khair Society
Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.
Dar Al Ber Society
Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.
Dubai Cares
Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.
Emirates Airline Foundation
Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.
Emirates Red Crescent
On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.
Gulf for Good
Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.
Noor Dubai Foundation
Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).
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How Filipinos in the UAE invest
A recent survey of 10,000 Filipino expatriates in the UAE found that 82 per cent have plans to invest, primarily in property. This is significantly higher than the 2014 poll showing only two out of 10 Filipinos planned to invest.
Fifty-five percent said they plan to invest in property, according to the poll conducted by the New Perspective Media Group, organiser of the Philippine Property and Investment Exhibition. Acquiring a franchised business or starting up a small business was preferred by 25 per cent and 15 per cent said they will invest in mutual funds. The rest said they are keen to invest in insurance (3 per cent) and gold (2 per cent).
Of the 5,500 respondents who preferred property as their primary investment, 54 per cent said they plan to make the purchase within the next year. Manila was the top location, preferred by 53 per cent.
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