Aramex, the Middle East's largest courier company, said its third-quarter profit dropped as revenue for the period declined amid continued global macroeconomic challenges, high interest rates and foreign currency fluctuations.
Net profit attributable to equity holders of the company for the three months to the end of September declined by nearly 76 per cent year-on-year to Dh9.64 million ($2.6 million), Dubai-based Aramex said on Wednesday.
“More than half of the decline in net income can be attributed to the interest expenses related to the acquisition of MyUS due to the steep increase in interest rates since the transaction,” the company said in a filing to the Dubai Financial Market, where its shares are traded.
Normalised net income – excluding the foreign exchange impact and the increase in finance loan expenses – was Dh30.4 million in the quarter, an annual decline of 23 per cent.
Revenue dropped to Dh1.35 billion ($367.6 million), from Dh1.43 billion a year earlier, while operating profit decreased by about 12 per cent to Dh44.7 million.
The company attributed the drop in third-quarter revenue to “currency fluctuations, macroeconomic challenges, and subdued global retail activity in certain markets”.
Excluding the impact of foreign exchange translation, the decline in revenue was 2 per cent during the quarter.
“In the face of an ongoing global growth slowdown, Aramex remains steadfast in its commitment to a strategic framework centred on operational efficiency, high-quality sales and stringent cost management,” chief executive Othman Aljeda said in the statement.
For the first nine months of 2023, revenue dropped 5 per cent to Dh4.17 billion, while net profit slipped 60 per cent to Dh52.5 million.
“Our focus on cost optimisation has been pivotal in maintaining steady operating margins, even amidst the challenges posed by currency fluctuations and the interest rate environment,” Mr Aljeda said.
Companies in the global logistics sector have been grappling with a decline in shipments over the past few quarters, having been hit by lower demand for their services as consumers returned to in-store shopping after Covid-19 was brought under control.
Higher expenses have also pushed logistics operators to undertake cost-control measures to protect profits and remain competitive.
Aramex, however, expects a rebound in the “historically stronger” fourth quarter, as it gears up for the gifting season, which includes Christmas and New Year, with plans to boost operations across all its verticals, Mr Aljeda said.
“Our primary focus will be to deliver outstanding services to our customers. We will continue enhancing trade lanes, enriching the customer experience and fortifying our operational capabilities across all business lines,” he said.
“Our goal is to expand our quality business lines, focusing on B2B, direct brands, SMEs and premium offerings such as same- and next-day deliveries.”
Aramex's international express business posted a 4 per cent annual rise in revenue to Dh512 million, despite a 5 per cent decline in shipment volumes due to the slowdown in retail activity.
Its premium services, which include same- and next-day deliveries within the GCC, and dangerous goods “continue to perform well”, it said.
Gross profit for the unit hit Dh183 million, a 20 per cent annual increase.
The company said that several factors, including improvements in line haul costs and other cost optimisation measures, as well as the consolidation with its MyUS unit, continued to support its international express business.
MyUS – formally Access USA Shipping – was acquired by Aramex for $265 million in October 2022.
Revenue for the company's domestic express unit reported a 5 per cent year-on-year decline in the third-quarter to Dh353 million, attributed to “marked currency fluctuations”. Excluding the currency fluctuations, revenue grew 4 per cent, it said.
Freight forwarding, meanwhile, posted a 16 per cent revenue drop to around Dh368 million in the three-month period, although the unit still managed to record “solid growth in volumes and good profitability”, the company said.
Revenue in Aramex's logistics and supply chain solutions decreased 5 per cent annually to around Dh105 million, primarily due to forex translations.
Russia's Muslim Heartlands
Dominic Rubin, Oxford
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
The five pillars of Islam
In-demand jobs and monthly salaries
- Technology expert in robotics and automation: Dh20,000 to Dh40,000
- Energy engineer: Dh25,000 to Dh30,000
- Production engineer: Dh30,000 to Dh40,000
- Data-driven supply chain management professional: Dh30,000 to Dh50,000
- HR leader: Dh40,000 to Dh60,000
- Engineering leader: Dh30,000 to Dh55,000
- Project manager: Dh55,000 to Dh65,000
- Senior reservoir engineer: Dh40,000 to Dh55,000
- Senior drilling engineer: Dh38,000 to Dh46,000
- Senior process engineer: Dh28,000 to Dh38,000
- Senior maintenance engineer: Dh22,000 to Dh34,000
- Field engineer: Dh6,500 to Dh7,500
- Field supervisor: Dh9,000 to Dh12,000
- Field operator: Dh5,000 to Dh7,000
The biog
Most memorable achievement: Leading my first city-wide charity campaign in Toronto holds a special place in my heart. It was for Amnesty International’s Stop Violence Against Women program and showed me the power of how communities can come together in the smallest ways to have such wide impact.
Favourite film: Childhood favourite would be Disney’s Jungle Book and classic favourite Gone With The Wind.
Favourite book: To Kill A Mockingbird for a timeless story on justice and courage and Harry Potters for my love of all things magical.
Favourite quote: “We make a living by what we get, but we make a life by what we give.” — Winston Churchill
Favourite food: Dim sum
Favourite place to travel to: Anywhere with natural beauty, wildlife and awe-inspiring sunsets.
