Shares in Aramex jumped more than 50 per cent this year, making it one of the strongest performing equities in the UAE at a time when the broader market has declined.
The express courier’s stock was at Dh2.23 yesterday, just under a 27-month high. Its gains have come as Dubai’s broader index fell 6.6 per cent over the same period.
Aramex was founded in Jordan in 1982 and has grown into a multi-service provider offering express delivery, freight forwarding, logistics and warehousing, consumer retail services and e-commerce solutions.
The company operates throughout the Gulf, Europe, Asia and the US, with more than 8,000 employees. Its first-half performance delivered Dh102.5 million (US$27.9m) in net profits.
“The company has been delivering growth to the bottom line, is well managed and its performance has been excellent,” said Kareem Murad, an analyst at Shuaa Capital. “It is one of the favourite picks for foreigners.”
General trading on the stock has been thin, suggesting many investors are in a “buy and hold” mode. With the value of outstanding shares totalling Dh1.3 billion, only between Dh8m and Dh10m are traded daily, Mr Murad said.
“Thin volumes are one of the factors contributing to momentum on shares,” he said.
Some analysts have suggested investors expect Aramex to become a takeover target if the Federal Government were to proceed with plans to raise foreign ownership limits under a proposed companies law.
“There are rumours referring to some old media reports that TNT may be interested in acquiring Aramex,” said Julian Bruce, the director of institutional equity sales at EFG-Hermes. “The stock is solely driven by local investors who are speculating on this possibility.”
Underscoring the growth potential of the UAE logistics sector, FedEx yesterday announced its plans to expand its business in a move that could challenge Aramex’s strong market position.
The US-based company said it would create a “next business day” domestic express service to complement its existing international express after similar moves in India, UK, China, Mexico and Switzerland.
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Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
if you go
The flights
Air Astana flies direct from Dubai to Almaty from Dh2,440 per person return, and to Astana (via Almaty) from Dh2,930 return, both including taxes.
The hotels
Rooms at the Ritz-Carlton Almaty cost from Dh1,944 per night including taxes; and in Astana the new Ritz-Carlton Astana (www.marriott) costs from Dh1,325; alternatively, the new St Regis Astana costs from Dh1,458 per night including taxes.
When to visit
March-May and September-November
Visas
Citizens of many countries, including the UAE do not need a visa to enter Kazakhstan for up to 30 days. Contact the nearest Kazakhstan embassy or consulate.
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The specs: 2019 BMW X4
Price, base / as tested: Dh276,675 / Dh346,800
Engine: 3.0-litre turbocharged in-line six-cylinder
Transmission: Eight-speed automatic
Power: 354hp @ 5,500rpm
Torque: 500Nm @ 1,550rpm
Fuel economy, combined: 9.0L / 100km
Tuesday's fixtures
Kyrgyzstan v Qatar, 5.45pm
India squad
Virat Kohli (captain), Rohit Sharma, Mayank Agarwal, K.L. Rahul, Shreyas Iyer, Manish Pandey, Rishabh Pant, Shivam Dube, Kedar Jadhav, Ravindra Jadeja, Yuzvendra Chahal, Kuldeep Yadav, Deepak Chahar, Mohammed Shami, Shardul Thakur.
'Manmarziyaan' (Colour Yellow Productions, Phantom Films)
Director: Anurag Kashyap
Cast: Abhishek Bachchan, Taapsee Pannu, Vicky Kaushal
Rating: 3.5/5
Company name: Play:Date
Launched: March 2017 on UAE Mother’s Day
Founder: Shamim Kassibawi
Based: Dubai with operations in the UAE and US
Sector: Tech
Size: 20 employees
Stage of funding: Seed
Investors: Three founders (two silent co-founders) and one venture capital fund
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Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
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Countries recognising Palestine
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A meeting of young minds
The 3,494 entries for the 2019 Sharjah Children Biennial come from:
435 – UAE
2,000 – China
808 – United Kingdom
165 – Argentina
38 – Lebanon
16 – Saudi Arabia
16 – Bangladesh
6 – Ireland
3 – Egypt
3 – France
2 – Sudan
1 – Kuwait
1 – Australia
Dunki
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
MATCH INFO
Uefa Champions League semi-finals, first leg
Liverpool v Roma
When: April 24, 10.45pm kick-off (UAE)
Where: Anfield, Liverpool
Live: BeIN Sports HD
Second leg: May 2, Stadio Olimpico, Rome
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Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
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Uefa Nations League A Group 4
England 2 (Lingard 78', Kane 85')
Croatia 1 (Kramaric 57')
Man of the match: Harry Kane (England)
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Europa League final
Who: Marseille v Atletico Madrid
Where: Parc OL, Lyon, France
When: Wednesday, 10.45pm kick off (UAE)
TV: BeIN Sports
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Lahore Qalandars 186 for 4 in 19.4 overs
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bt Yorkshire Vikings 184 for 5 in 20 overs
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Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
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