Agility, the most recognised logistics brand in the Middle East

Agility, the most recognised logistics brand in the Middle East

Agility’s vision

The company is eyeing markets beyond the region to radically elevate its revenues in five years

November 2015

Kuwait’s Agility, the largest Gulf Arab transport logistics company, expects revenue to more than double in the next five years as it focuses on emerging markets, its chief executive said.

The company is one of Kuwait’s corporate success stories but has had to look beyond domestic markets as Middle East companies have reined in spending in the face of reduced oil revenues in the region.

Agility, which is present in about 100 countries, announced in February that it would spend up to $100 million this year on expansion in Africa, but CEO Tarek Sultan outlined for the first time how it expects to benefit from its shifting focus.

“By 2020 we expect to be anywhere from $10 billion to $15 billion in revenue, with earnings before interest, tax, depreciation and amortisation (EBITDA) of $1 billion.” he told Reuters on the sidelines of a conference.

Annual revenue is currently about $5 billion, with Asia accounting for $1.5 billion, the Middle East and Africa $1 billion and the rest coming from Europe and the Americas, Sultan said.

Since February, Agility has invested in the Ivory Coast and plans to spend on logistics infrastructure in various African countries. One recent sizeable investment was in tankers to distribute oil and gas and refined products, he added.

Though the plunge in crude oil prices has weighed on Agility’s core markets, lower fuel prices have brought significant reduction to its global fuel costs, Sultan said.

Agility has two main lines of business. Through its Global Integrated Logistics (GIL) business, it works with companies in diverse industries and markets to move, manage, and distribute the goods that underpin global commerce. Through its Infrastructure portfolio of companies, it provides logistics-related services in emerging markets that facilitate trade and create access to new opportunities.

The company got its start as a local warehousing provider in Kuwait and grew to become the largest logistics company in the Middle East.

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