Energy sector giant Aramco and DHL Supply Chain have signed an agreement for a new procurement and logistics hub in Saudi Arabia, to enhance supply chain efficiency and sustainability.

The joint venture aims to be operational in 2025, and DHL said this would be the first hub in the region that will support the industrial, energy, chemical and petrochemical sectors with integrated procurement and supply chain services.

The partnership is expected to add value in meeting customers’ supply chain purchasing, warehouse and inventory management, transportation and reverse logistics needs. It will initially focus on Saudi Arabia and gradually across the MENA region. The formation of the joint venture is subject to regulatory approvals and other customary closing conditions.