Aramex CEO says alternative trade routes boosted second-quarter performance as the Middle East emerges as a shifting centre of global logistics.
Aramex is targeting double-digit revenue growth in 2026 and 2027, while expecting freight rates to take between six and 12 months to normalise after peace returns to the region, group CEO Amadou Diallo said.
“That is our aspiration and our obligation,” Diallo told Khaleej Times when asked whether the company could sustain the double-digit growth recorded in the second quarter of 2026.
The Dubai-listed logistics company reported revenue of Dh1.83 billion for the second quarter, up 22 per cent year on year and its highest quarterly figure on record. May and June each delivered monthly revenue records, taking first-half revenue to Dh3.43 billion, an increase of 12 per cent. Net profit rose seven-fold to Dh47 million, supported by demand for freight forwarding services and tighter cost controls.
Diallo said much of the recent growth was driven by multimodal solutions designed to keep shipments from Europe moving into the GCC. These include using Turkish ports connected to overland routes into the region, alongside gateways such as Sohar, Salalah and Jeddah.
“Putting in place alternative routings to be able to offer solutions so that the market could be sustained and resilient is what we offer,” he said.
Diallo, a logistics and supply chain industry veteran with more than 30 years of experience, joined Aramex as group CEO on May 1, 2026.
Freight rates expected to remain elevated
Asked when freight rates might decline, Diallo said he could not predict when the conflict would end. However, once peace returns and supply chains are replenished, he expects conditions to normalise within six to 12 months.
“At the moment we have a lot of shipping lines that are not coming. We have a lot of airlines that are not coming. You have ports that are congested,” he said. The disruption will continue to exert inflationary pressure until supply chains are re-established, he added.
Aramex has introduced surcharges on energy-intensive last-mile services, although Diallo described the increase as marginal.
“We have to make sure that our customers and consumers can afford their products,” he said.
As reported by Khaleej Times earlier, shipping freight charges have risen from $2,000 to around $12,000 amid the US-Iran war, higher oil prices, the closure of the Strait of Hormuz and a shortage of containers.
The company has also faced higher fuel costs and port congestion, Diallo said. However, its local presence and workforce have helped it keep trade moving even when several ports were blocked.
He also pointed to a decline in tourist numbers during the conflict, which has affected demand across e-commerce, fashion and retail.
“Peace is always much better to navigate any business,” he said. “A better tomorrow cannot happen without peace.”
Diallo said Aramex has received a growing number of requests for regional contract logistics solutions. The trend predates the conflict but has accelerated as businesses look to position operations closer to customers and reduce their exposure to rising ocean freight costs.
Demand for warehousing is particularly strong in the UAE, Jeddah, Turkey and India.
Drones: Aramex shifts focus to middle-mile deliveries
Aramex has been testing drone deliveries since 2022 and launched a pilot in Abu Dhabi last year. Diallo said the company found last-mile deliveries to consumers challenging in densely populated urban areas, prompting it to explore using drones to transport heavier shipments between stations.
He said drones can speed up deliveries, avoid traffic congestion during same-day delivery windows and improve safety in hazardous environments such as oil and gas facilities.
However, wider deployment across the region will depend on regulatory approvals, he said, without providing a launch date. Drones could also be used to connect cities and deliver spare parts to farmers in remote areas, including markets in East Africa.
Middle East’s role as a logistics hub grows
Aramex operates from several locations across the UAE, including Khorfakkan, Fujairah and Ras Al Khaimah. Diallo said the company would work with other major businesses to develop multimodal logistics solutions as regional infrastructure expands.
He highlighted developments in Khorfakkan, Fujairah and Sohar, the planned rail link from Oman, and port projects in Basra and Turkey as important to the region’s growing logistics network.
Diallo believes the global logistics centre of gravity is shifting towards the Middle East. Having previously been concentrated in Singapore and then Shanghai, he said the industry is now seeing a shift as Asian manufacturers move production to countries such as Saudi Arabia, the UAE, Egypt and Morocco.
Under its Accelerate28 strategy, Aramex is deploying AI for dynamic route optimisation and predictive delivery estimates. The company is also using sensors instead of scanning to track shipments, while applying AI across finance, HR recruitment and sales.
Diallo said these technologies are intended to free employees from repetitive tasks so they can devote more time to serving customers.
Aramex is also expanding its operations across Saudi Arabia, Asia, Africa, the Americas and Europe. Diallo declined to disclose the amount being invested but said it “is not small”.
Beyond business growth, he said the company is placing emphasis on employee engagement and community service.
“It is important that people don’t only talk about business but also about the contribution to society,” he said.
