Cyberjaya, 29 August 2022 – Dagang NeXchange Berhad (“DNeX”) has reinforced its partnership with Saudi Arabia-based Ajlan & Bros Holding Group through a Collaborative Framework Agreement (“CFA”) to form a joint venture company (“JVCo”) in the Kingdom of Saudi Arabia (“KSA”).
Under the CFA, both parties will explore and identify opportunities in driving economic growth in high-value areas such as Digital, Cloud, and the Fourth Industrial Revolution (“4IR”) through the JVCo which will undertake the venture and serve the KSA and the Middle East and North Africa (“MENA”) markets.
In addition, DNeX has also signed a Memorandum of Understanding (“MoU”) with Ajlan & Bros Holding Group to explore the establishment of a packaging and assembly plant in KSA as well as potential participation by Ajlan & Bros Holding Group in DNeX’s plan to build and equip a brand new 12-inch semiconductor fab in Malaysia.
The MoU will also look at forming a joint-venture agreement for both parties to leverage their strengths and contribute financial resources, while enhancing technical capabilities and client relationships to support the formation and growth.
Both the agreements were signed in Kuala Lumpur earlier today by Tan Sri Syed Zainal Abidin Syed Mohamed Tahir, Group Managing Director of DNeX, and Mohammed Bin Abdulaziz Alajlan Deputy Chairman from Ajlan and Bros. Holding Group. The exchange of signed documents was witnessed by Yang Amat Berhormat Dato’ Sri Ismail Sabri Yaakob, Prime Minister of Malaysia.
The agreements are a follow-through from a Memorandum of Understanding (“MoU”) signed in June this year to explore the business synergy between DNeX and Ajlan and Bros. Holding Group. This collaboration complements KSA’s effort to build a thriving economy in line with the Saudi Vision 2030, as part of its initiatives to be an integral driver of international trade routes for Asia, Africa, and Europe.
Under the CFA, both DNeX and Ajlan and Bros Holding Group aim to realise the highest digital development through sustainable economic growth, enhancing innovation and values through investing in talent, allowing companies within DNeX to share technical expertise and know-how with their counterparts in Ajlan and Bros Holding Group through the JVCo.
DNeX, through wholly-owned subsidiary Dagang Net Technologies Sdn Bhd, with its experience as the operator of Malaysia’s National Single Window (“NSW”) for Trade Facilitation, can lend its expertise in developing and managing a complex and comprehensive electronic-based trade ecosystem.
Meanwhile, through business unit Innovation Associates Consulting Sdn Bhd (“iAC”), DNeX can share its expertise in technology consulting and system integration such as the implementation of a robust accrual accounting system as well as nationwide information technology (“IT”) deployment.
According to Tan Sri Syed Zainal Abidin Syed Mohamed Tahir, the JVCo will further benefit from the network of influence of Ajlan and Bros Holding Group in the region, which in turn allow DNeX to expand its business presence in KSA and MENA markets.
Under the CFA, the partnership will also include the deployment of home-grown technologies from DNeX and its Group of companies to assist in transforming KSA’s public services and private sector, he said.
“For example, Dagang Net which has been the operator of the NSW for Trade Facilitation since its inception in 2009 processes between 70 per cent and 80 per cent of Malaysia’s total import and export transactions annually through this system. The company has more than 30 years of experience in trade facilitation and has pioneered and spearheaded initiatives to create paper-less, electronic Customs-related services to ease the facilitation and streamlining of international trading processes for the import and export, trade and logistics industries. This expertise can be shared with the relevant NSW operator in the MENA region through the JVCo,” he said.
“Whilst iAC, which is a leading IT solutions provider to both public and private organisations in Malaysia, places DNeX in a unique position to share its expertise through the JVCo,” he added.
Both DNeX and Ajlan and Bros Holding Group, he said, will also undertake joint-development of products and services in such areas as Analytics/Big Data, Artificial Intelligence, Low Code Application Development as well as Cloud-based Enterprise Resource Planning (“ERP”) applications in digital and technology transformation of Human Resource, Finance and Supply Chain functions.
“We will also undertake efforts to integrate software development and information and technology (“IT”) operations in providing microservices capabilities, and Robotic Process Automation,” he added.
According to him, DNeX aspires to build a long-term partnership with Ajlan and Bros Holding Group in churning out significant impact in exporting DNeX Group’s products and services and technological expertise in KSA and the MENA markets by leveraging on the strength, regional presence and access to both funding and markets of Ajlan and Bros Holding Group.
Ajlan & Bros Holding Group, headquartered in Riyadh, Kingdom of Saudi Arabia, is one of the largest private sector conglomerates in the Middle East region established in 1979, employing over 15,000 people in more than 25 countries and across 75 companies.
The Saudi Arabia-based diversified Group has investments in several countries across various portfolios such as real estate development, international investments, logistics, infrastructure, ports, energy, mining, healthcare, tourism etc. Ajlan & Bros Holding Group has businesses and coverage in more than 20 sectors.
From front-left: Dagang NeXchange Berhad Group Managing Director Tan Sri Syed Zainal Abidin Syed Mohamed Tahir and Ajlan & Bros Holding Group's Industrial Manufacturing Sector, Chief Executive Officer, Dr. Ali AlKhatib exchanging documents, witnessed by Malaysia’s Prime Minister Datuk Seri Ismail Sabri Yaakob and accompanied by Shaykh Muhammed Abdulaziz AlAjlan and H.E. Ali AlHazmi at the signing ceremony in Kuala Lumpur today.