DIEZ’s Tradeling signs deal to buy Axiom’s distribution business

Tradeling Holding, the B2B e-commerce entity of the Dubai Integrated Economic Zones Authority (DIEZ), has signed a definitive agreement to acquire the Mena distribution business of Axiom Telecom.

The signing, witnessed by Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of DIEZ, marks a landmark transaction that positions Tradeling as a key technology partner for global brands, with a projected annual revenue exceeding Dhs2 billion.

Further to the agreement, signed by Dr Mohammed Al Zarooni, Executive Chairman of DIEZ, and Abdul Aziz AlBannai, Chairman of Axiom Telecom, Tradeling Holding will acquire 100 per cent of A&T Holding FZCO, which owns Axiom’s key distribution businesses.

These include Axiom Distribution FZCO (UAE), which specialises in technology distribution within the UAE and manages experience stores for leading mobile handset manufacturers; Axiom International Distribution FZCO (UAE), responsible for technology distribution in UAE free zones and global exports; and Axiom Telecom Saudi Arabia Co (KSA), which provides technology distribution services across Saudi Arabia and international markets.

Tradeling, headquartered in Dubai Airport Freezone (DAFZ), operates the Mena region’s largest B2B e-commerce platform. Serving over 50,000 customers, it has successfully grown its order volumes fourfold since 2023. In 2024, Tradeling successfully shipped 3.3 million units, with expectations to surpass 3.5 million units by year-end.

As a subsidiary of DIEZ, Tradeling leverages the authority’s strategic vision, fostering innovation and driving economic growth in Dubai and beyond.

Commenting on the acquisition, Dr. Mohammed Al Zarooni said, “This acquisition is a milestone in Tradeling’s journey to redefine the B2B e-commerce landscape in the Middle East. Through Tradeling’s robust digital capabilities and Axiom’s established distribution networks, we are creating a powerhouse that will deliver unmatched value to businesses across the region. This landmark transaction aligns with the Dubai Economic Agenda D33, which aims to double the size of the emirate’s economy by 2033. Moreover, Tradeling is set to continue driving significant growth and attracting global businesses seeking to establish a presence in the Middle East.” “Tradeling’s focus on building a more efficient and interconnected marketplace, will contribute significantly to Dubai’s vision of becoming a dynamic hub for trade, innovation, and digital commerce. This transaction will facilitate the seamless movement of goods and services, enhance trade connectivity, and elevate the overall business environment in the region,” Al Zarooni added.

Fahad AlBannai, Chief Executive Officer of Axiom Telecom, stated, “For over two decades, Axiom has been a trusted name in technology distribution across the GCC. This transaction represents an exciting new chapter, allowing Tradeling to leverage our established infrastructure and market expertise to elevate its business offering. We are proud to see our legacy continue as part of Tradeling’s ambitious growth strategy.” Alastair Croker, Chief Executive Officer (CEO) of Tradeling, commented, “By integrating Axiom Telecom’s distribution business into our operations, we are not only scaling our capabilities but also reshaping the technology distribution landscape across the Mena region.

This strategic move enables us to provide access to global brands while leveraging our platform to empower businesses of all sizes to succeed in an increasingly competitive market. At Tradeling, we are dedicated to positioning Dubai as a hub for advanced trade and commerce while fostering a stronger, more connected ecosystem that enables businesses to thrive.” This acquisition aligns with Tradeling’s mission to provide cutting-edge solutions in marketplace, distribution, warehousing, and logistics. By integrating Axiom’s expertise in technology distribution, Tradeling will further expand its service capabilities and client base, enhance supplier relationships, and drive innovation in the region’s B2B ecosystem.

In September, Sheikh Ahmed announced the operational and financial results of DIEZ for the first half of 2024. Driven by high occupancy rates and solid performance across all business sectors, the results reflect remarkable growth in key strategic indicators, strengthening the position of the Authority and its economic zones – the Dubai Airport Freezone, Dubai Silicon Oasis, and Dubai CommerCity – at the heart of Dubai’s commercial landscape and non-oil economy.

The results show that DIEZ achieved a growth of 18 per cent in net profit, 12 per cent in total revenue, and 7 per cent in operating profit in the first half of 2024, as compared to the results announced at the end of 2023. These results illustrate DIEZ’s steady and sustainable growth outlook.

These figures also coincide with the growth in the number of registered companies, encompassing local, regional, and global markets, operating within the DIEZ economic zones. The total number of such companies marked a 4 per cent increase compared to the end of 2023. Additionally, these companies now employ over 78,000 specialised employees, reflecting a 12 per cent growth from the previous year.

WAM