ABU DHABI: A top official from Aramex Company said that they are looking at acquisitions in the coming years to expand their business.
Fadi Ghandour, vice-chairman and founder of Aramex, said that they have stated publicly that they are going to grow through acquisitions.
“It just takes time. May be next year, we are going to acquire and be little more aggressive. We will only do acquisitions in markets that are emerging like Africa, South East Asia, South Asia, Australia and Turkey.”
He did not give further details but said they might acquire one or two companies.
He was speaking on the sidelines of INSEAD Global Business Leaders conference in Abu Dhabi on Monday.
He said that the governments across the region should encourage starts ups and small and medium enterprises.
“A lot of private equity money goes into private sector. You see billions of government money going into infrastructure, but you only a see a trickle in starts ups and small and medium enterprises.”
He added that governments should make it easy for people to set up businesses. “Licensing process be made easy, rents are high, there should be availability of broadband connectivity though smart cities are popping up. The government should make it easy for people to enter the market.”
If the company goes bankrupt, he says bankruptcy laws should be in place. “You need to have a law. If he goes bankrupt, he can’t go to a jail. It’s a regional issue and in some cases it’s global. Ease of entry, ease of exit without life implications is a must.”
Aramex, the UAE based global logistics and transportation solutions provider recorded robust profits this year. Its net profits increased 14 per cent to Dh78.7 million, up from Dh69.3 million in the first quarter of 2013. Revenues in the first quarter of 2014 increased to Dh852 million, up 6 per cent compared to Dh803 million in the first quarter of 2013.
