Agility to invest more than a billion in warehousing across emerging markets

Published: Friday, January 11, 2019

Agility is considering a bond issuance of up to $1 billion in 2019 to fund expansion in its industrial real estate and warehousing business across emerging markets, according to a local newspaper.

Agility said it plans to invest US $1.6-billion by 2020 to diversify its revenue streams and reach its target of US $800-million (Dh2.9bn) earnings before interest, taxes, depreciation and amortization (ebitda) by 2020.

The company, which is listed in Kuwait and Dubai, is bullish on emerging markets in Africa, where it has invested heavily, as well as the Middle East South-East Asia.

“We’re bullish on technology and how it intersects with emerging markets and small-and-medium enterprises,” said Tarek Sultan, CEO of Agility.

Sultan added that the company expects to turn an annual profit in 2018 and that it would be “safe to assume” a growth in annual earnings next year up from 2018, as its logistics and infrastructure business continues to grow.

Agility and KSA customs among 94 players in Maersk and IBM’s blockchain solution
Agility earlier this week announced it will invest US $100m in digital logistics website, which allows small businesses and entrepreneurs to manage their freight and deliveries online.

“With the growth of e-commerce and the initiatives to approach the Middle East market, it is timely to come up with a one-stop shop for e-commerce providers to address the region as a whole,” he said. “It’s still early days for e-commerce in the Middle East and there is tremendous market potential.”

Sultan tempered his comments with concern about the impact on global economic growth from rising trade tensions between the US and China.

“We’re a global company so anything impacting global growth will impact us in some way shape or form,” Sultan said. “The trade dispute is somewhat concerning.”