Annual - Aramex

Mission and Purpose
Mission
To be recognized as one of the top five global logistics and express transportation service
providers by the year 2010
Purpose
To enable and facilitate regional and global trade and commerce

Delivery has no limits
2008 marked the unveiling of a new Aramex corporate image that is
designed to catch up with the rapid growth of the company.
The new, crystallized brand signals Aramex’s evolution into a major
global logistics player. Our new slogan – “delivery unlimited” –
simply and confidently states that we deliver everything from a
single package to a comprehensive logistics solution. We deliver
ideas and innovation. We deliver on our promises to our customers,
our communities and the environment.

Reach has no limits
We continue our global expansion by assuming creative
asset-light investments through franchising and joint
ventures in emerging markets such as Asia, Eastern Europe
and Sub-Saharan Africa.
In 2008, we opened a new ground operations hub in
Singapore, formed a joint venture in Jakarta, and established
new franchises in Bangladesh, Vietnam, Nepal, Cambodia,
Azerbaijan, Georgia, Ghana and Mauritius.

Determination has no limits
Sportsmanship and teamwork are integral to Aramex culture; our
people are driven by unwavering willpower and a winning spirit.
Our internal sports activities in 2008 included the 2nd
Basketball Tournament in Beirut and Gulf Soccer Cup in Bahrain.
On the public field, Aramex left a strong fingerprint at Dubai
Corporate Games, while our runners picked up trophies from
Cyprus to Austria and most importantly during the Des Sables
six-day desert challenge in Morocco.
In 2008 Aramex sponsored the AFC Champions
League, Asia’s premier football tournament
Aramex's inter-basketball tournaments foster the
spirit of sportsmanship between our employees

Tomorrow has no limits
The year following the release of our first Sustainability
Report witnessed a number of milestones in our
sustainable business strategy. Assigning the new
position of Chief Sustainability and Compliance Officer
is one of them.
Environmental Sustainability is at the core of our
strategy. In 2008 we introduced hybrid vehicles in our
fleet to reduce our carbon footprint and biodegradable
pouches to reduce waste impact. The company’s
Annual Leaders Conference addressed socially and
environmentally sustainable practices and featured
many responsible activities, including the utilization of
digital documents to reduce printed material, natural
gifts that were handmade by local communities and
bicycle transportation to reduce carbon emissions.
Aramex Leaders attending the "Changing
Today, Protecting Tomorrow" conference in
Sharm El-Sheikh, Egypt
Driven by its commitment to sustainability of
the environment, Aramex switched to using
biodegradable pouches in its operations.

Aramex Founder and CEO Fadi Ghandour
graciously accepting the ‘Businessman of
the Year’ award at the 9th annual Arabian
Business Achievement Awards.

Innovation has no limits
Our innovation and responsible approaches towards all
stakeholders have been recognized by the industry.
Aramex was acclaimed for its outstanding achievements
in third party logistics (3PL) and corporate social
responsibility (SCR), as it scooped up trophies at the
annual Supply Chain and Transport Awards (SCATA).
The Green Association presented Aramex with the 2008
Gold International Green Apple Award for Environmental
Best Practice and Sustainable Development in the Asian
region.

Volunteers sorting aid supplies at an Aramex
Logistics Center, as part of the Deliver Hope to
Gaza campaign.
Children participating in one of the youth
development activities at Ruwwad; a non-profit
organization led by Aramex that aims to enable
marginalized communities to reach for a better future.

Hope has no limits
We contribute to the progress of our communities
by supporting the same values we nurture in our
internal environment. By partnering with other
socially responsible organizations, Aramex
provides its transportation network and logistical
expertise to support worthy causes.
Among the initiatives that Aramex supported in
2008 were: UNICEF’s Send a Card, Save a Life
annual greeting cards campaign across the GCC;
the Arab Fund for Arts and Culture, an independent
initiative committed to empowering artists,
authors and filmmakers across the region; Call for
Life campaign held on behalf of the Children’s
Cancer Center of Lebanon; Dubai Cares’ Million
Book Challenge, an empowering literacy project to
provide children around the world with access to
books; and the Hikmat Road Safety program in
Jordan.
With the conclusion of 2008, Aramex launched a
successful emergency donations campaign in the
UAE and Jordan to collect and deliver aid supplies
to the afflicted people in Gaza.

Annual
Report 2008
I
Dear Stakeholders,
Abdullah Al Mazroui
Chairman
Two Thousand and Eight was an eventful year for Aramex, remarkably
a year of robust growth in the midst of economic turbulences
that provoked extreme uncertainty and prompted a thorough reevaluation
of old practices, performance, goals, and vision.
Aramex’s financial results for 2008 have been very consistent
with previous years. Our revenues grew by 17%, reaching AED
2.08 billion, and net profits increased by 21%, hitting AED 147.3
million. Moreover, we retain a cash position of AED 344 million in
our balance sheet.
Our logistics and supply chain operation experienced 24%
growth, largely due to innovative solutions and enhancements
in infrastructure coupled with a market trend that favours
outsourcing. Land freight, a cost-effective transportation service
well-suited for these difficult times, has also grown substantially.
Adapting to the tumult--and thriving while doing so--has proved to
us that our business model is the right one. It is resilient, flexible,
agile, quick to capitalize on opportunities and just as efficient in
adjusting to crisis.
From the outset, Aramex’s vision has been simple: Our life will
always revolve around our people, our clients, and our community.
Fadi Ghandour
Founder and CEO
This vision and the strategies that articulate it place the interests
of our stakeholders at the center of our endeavors and ensure that
they are the primary beneficiaries of our success.
And hence Aramex’s vision dictates that we maintain a healthy
balance between financial returns and social and environmental
considerations. We believe that businesses truly flourish when
they invest in their communities. Creating the position of Chief
Sustainability Officer was therefore an essential step towards
anchoring our responsible practices and systemizing our role as
a corporate citizen. Thanks to this approach, Aramex is the first
express and logistics company to introduce hybrid vehicles to its
fleet in the Middle East and to use biodegradable pouches across
its global network. And proud though we are of our track record in
pursuing new environmentally friendly practices and introducing
new technologies to our network, we are working very hard to
make sure that our current accomplishments are the forerunners
of much bolder ones.
Our commitment to a healthier future was also reflected in several
projects through which we leveraged our know-how and network
of partners to maximise impact. Our partnership with UNICEF’s
“Send a Card, Save a Life” greetings cards campaign in the GCC,
our logistics assistance to the Dubai Care “Million Book Challenge,”

and our support of the Arab Fund for Arts and Culture are among
the programs we embarked upon in 2008.
We have also expanded our community outreach and youth
empowerment activities through Ruwwad, Entrepreneurs for
Development, a region-wide Corporate Social Responsibility
initiative that focuses on offering better education and employment
opportunities to underprivileged youth through creative schemes
that focus on activism, volunteerism, and entrepreneurship.
Ruwwad, which commenced in East Amman, now includes the
north and south of Jordan and a community in Cairo, Egypt. Plans
for Lebanon, Syria, and Palestine are already underway.
Promoting excellence in research and nurturing the region's
intellectual capital are also part of Aramex’s push in the education
field. We are providing, over a four-year period, a scholarship fund
to Middle Eastern scholars participating in the Middle East Studies
Association Conference and sponsoring the Best Student Prize Paper.
Needless to say, we are very grateful that our community recognizes
such efforts. In 2008, Aramex received The Environmental Green
Apple Award, The Supply Chain and Transport Awards (SCATA)
for outstanding achievements in Third Party Logistics (3PL) and
Corporate Social Responsibility, and Arabian Business Magazine’s
Annual
Report 2008
“Businessman of the Year” award which honoured Fadi Ghandour,
the founder and CEO of Aramex.
On the regional expansion front, Aramex inaugurated a 20,000 sqm
state-of-the-art facility at the Jebel Ali Free Zone in Dubai that is
wholly dedicated to InfoFort, the leading records management
company in the Middle East.
Franchising has proven to be another successful strategy in
boosting Aramex’s geographic reach, We are setting up a franchise
support program that will allow young businesses in Georgia,
Ghana, Azerbaijan, Cambodia, and Mauritius to realize their
entrepreneurial ambitions. At the same time, we are looking for
prospects in Africa and Eastern Europe.
Clearly, without the support of our people, Aramex’s ambitions
would still be the stuff of dreams. We thank you for your continuous
support and your confidence in this company and its vision.
Abdullah Al Mazroui Fadi Ghandour
Chairman Founder and CEO
II

Annual
Report 2008
III
About the Company:
Aramex PJSC is a Public Joint Stock Company registered in the Emirate of Dubai, UAE on 15 February 2005 under the UAE Federal Law No 8
of 1984 (as amended).
The principal activities of the company are to invest in the freight, express, logistics and supply chain management businesses through
acquiring and owning controlling interests in one or more of the existing companies in the Middle East and other parts of the world.
The company’s registered office is: Office No 5, Abdul Rahman Al Zaroani real estate, Plot 221-121, Dubai Airport, Deira, Dubai, United Arab
Emirates.
On 22 June 2005, the company acquired 100% shareholding in Aramex International Limited, a company incorporated under the laws of
Bermuda. The following section presents information about Aramex International Limited for the years 2004 and 2005 and information
about Aramex PJSC for the years 2006, 2007 and 2008:

Selected Financial Data
Annual
Report 2008
The below schedule presents selected consolidated financial data of Aramex PJSC for the years 2006, 2007 and 2008, and data of Aramex
International Limited for the years 2004 and 2005. These statements have been prepared in accordance with international financial reporting
standards.
* Aramex International Limited numbers for the years 2004 and 2005 have been translated from US Dollars to UAE Dirhams using an exchange
rate of US$ 1 = AED 3.6726
Consolidated Income Statements
(In Thousands of UAE Dirhams)
(Year Ended December 31)
Revenues
2004 2005 2006 2007 2008
International express 294,523 369,119 439,769 519,085 610,343
Freight forwarding 245,308 282,985 611,188 823,993 912,599
Domestic express 93,093 120,874 176,962 224,988 295,665
Logistics 3,182 7,496 52,626 106,766 132,654
Publications and distribution 29,873 33,426 34,565 35,952 35,955
Others 27,174 39,952 48,693 73,004 92,738
Total Revenues 693,152 853,852 1,363,803 1,783,788 2,079,954
Shipping costs 377,617 447,320 743,966 948,133 1,041,971
Gross profit 315,536 406,532 619,838 835,654 1,037,983
Operating expenses 93,633 119,117 191,911 268,548 364,961
Selling, general and administrative expenses 163,985 200,957 318,605 424,095 497,797
Operating income 57,917 86,458 109,322 143,011 175,225
Interest income 889 753 8,564 8,070 5,375
Interest expense (856) (895) (3,309) (4,131) (3,442)
Gain (loss) on sale of fixed assets (15) 249 (544) (298) (853)
Exchange gain (loss) (584) 1,508 (967) 3,442 1,771
Other income (loss) 624 341 375 422 1,869
Income before income taxes 57,976 88,415 113,441 150,516 179,945
Provision for income taxes (3,239) (3,925) (4,437) (9,450) (10,573)
Minority interests (7,151) (10,087) (13,780) (19,515) (22,051)
Net Income 47,586 74,403 95,223 121,551 147,321
IV

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Report 2008
V
Consolidated Balance Sheet Data
(In Thousands of UAE Dirhams)
(Year Ended December 31)
Balance sheet data: 2004 2005 2006 2007 2008
Working capital 85,832 47,505 272,102 344,452 447,668
Total assets 281,824 439,122 1,512,415 1,674,836 1,845,307
Total liabitlies & Minority Interest 148,035 263,193 364,219 389,661 437,768
Total shareholders equity 133,789 175,929 1,148,196 1,285,175 1,407,539
- - - - -
History and Development of Aramex
The company is a provider of international and domestic express package delivery, freight forwarding, logistics and other transportation
services primarily to, from and within the Middle East and South Asia. The company has expanded its presence in Europe by acquiring
TwoWay Vanguard, a logistics and freight service provider that has offices in the Netherlands, Ireland and the United Kingdom. Historically,
the majority of the company’s business has been derived from its international express package delivery operations. The company believes
that these international express delivery operations, combined with its network of stations, have provided the company with a solid
infrastructure for the development of additional products, such as the company’s freight forwarding services, domestic express delivery
services and shopping services.
Since its inception in 1982, Aramex has expanded its station/office network to include 309 offices in 200 major cities with more than 7,600
employees as of December 2008.
The company is a founding member and chair of the Global Distribution Alliance (GDA), comprising of over 40 leading logistics and
transportation providers with over 12,000 offices worldwide, more than 66,000 employees, an excess of 33,000 vehicles and operations in
more than 220 countries throughout the world. The Global Distribution Alliance is strategically positioned to provide swift and reliable global
transportation solutions. Each individual member of the alliance provides extensive coverage and in-depth expertise in a different region
of the world. Together, the members provide total world coverage with thorough local knowledge, ensuring an exceptional service in every
corner of the globe. The alliance offers comprehensive tracking facilities utilizing state-of-the-art Aramex technology, allowing alliance
members, agents and customers to track and trace their shipments anywhere in the world with the click of a button.
Aramex shares were traded on the NASDAQ Stock Market from January 1997 to April 2002 under the symbol “ARMX”. The company was
acquired by a private equity firm pursuant to a U.S. cash tender that closed at the night of February 7, 2002 with approximately 96% of the
outstanding shares validly tendered prior to the expiration of the offer. The acquisition was executed on a leveraged basis and the company
was subsequently de-listed from NASDAQ on April 9, 2002.
On June 22, 2005 the company was acquired by Arab International Logistics PJSC, a publicly traded company on Dubai Financial Market that
was later renamed to Aramex PJSC.
Business Overview
The following discussion provides a summary of the key services provided by the company:
International Express Delivery Services
Express shipments consist of small packages, typically ranging in weight from 0.1 kilograms to 50 kilograms, with time-sensitive delivery
requirements. The company offers its international express delivery services to both retail and wholesale express accounts and offers its
customers the ability to track their shipments on the World Wide Web through the company’s Web site (www.aramex.com).
Retail express delivery customers include trading companies, pharmaceutical companies, banks, service and information companies and
manufacturing and regional distribution companies, and is not concentrated in any one industry.

Annual
Report 2008
Wholesale express delivery customers consist primarily of: (a) other members of the Global Distribution Alliance, and (b) Express delivery
companies with express packages that have an Aramex destination and require Aramex’s network to deliver their shipments. The end-user
remains a customer of Aramex’s wholesale client.
Freight Forwarding Services
The company offers a wide range of freight forwarding services including air, land and ocean transport. Forwarding of loose cargo or
consolidated freight, warehousing, customs clearance and break-bulk services and inter-modal transportation such as air/land, sea/land,
etc., are some of the additional services on offer by Aramex today. Freight shipments typically have gross weights in excess of 50 kilograms
on average. These require more specialized handling and are normally less time-sensitive than express shipments. Aramex provides full
“door-to-door” services from, to and within the Middle East, South Asia and Western Europe, mainly in the United Kingdom, Netherlands
and Ireland. A significant portion of the Company’s freight forwarding business involves consignee sales (or routed imports) and, to a lesser
extent, exports by air, ocean and land modes.
Aramex launched its freight forwarding business in 1987 out of selected stations, and from 1993, at every Aramex station in the Aramex
network. Whereas express shipments in the Aramex network virtually always pass through one of its international hubs or gateways, freight
forwarding shipments are routed directly from origin to destination on board the operating carriers that are active on these routes or on the
wings of the commercial lift available on city-pair basis around the globe. Usually the freight route is selected to best suit the size, weight
and time-sensitivity of the shipment on hand.
The company continued in 2008 to expand the ground transportation portion of its freight forwarding business. Ground transportation
shipments typically consist of a wide range of materials ranging from heavy-weight packages, high-value electronics, computer equipment
and other similar electronic items, to heavy machinery and household goods that do not have as time-sensitive delivery requirements as
the small packages sent by the Company’s express delivery system. The inland service delivers shipments at lower costs than express
delivery shipments or than the air freight delivery system. The Company usually delivers its ground transportation shipments by truck
and inland hauling. The Company wet-leases most of the trucks it uses for these services today. Wet-leases are leases from local trucking
companies of vehicles, drivers and other personnel needed to complete the service. Leases with owner-operator drivers is the system that
worked best in 2008.
The company started providing such ground transportation and land freight services in 1998 through a network of trucking routes from
Dubai, UAE, to each of Riyadh, Jeddah and Dammam in Saudi Arabia and Amman in Jordan. At present the company has expanded its ground
transportation network in the Gulf Council Countries (GCC) by adding additional routes linking Dubai to each of Muscat (Oman), Kuwait City
(Kuwait), Manama (Bahrain) and Doha (Qatar) and the rest of Saudi Arabia. This expansion included such routes as Dubai/Amman, Amman/
Beirut, Istanbul/Levant, Istanbul/Saudi and Cairo/Khartoum runs. The company has also established extensions from several of these cities
to surrounding areas. The company has focused on the expansion of its ground transportation network in the GCC due to its belief that such
a region constitutes a number of highly under-developed markets with rising demand for “efficient” ground transportation delivery services
between them. The company plans to further expand its ground transportation network in the Middle East at large and in the Gulf and Levant
regions in particular, according to the increasing demands of its local and network clients.
Logistics Services
The company offers third-party logistics services through a network of logistics facilities located at major areas in the GCC, Middle East,
North Africa and West Europe regions. Three of these centers are located at free zones in Jebel Ali in the UAE, Bahrain and Queen Alia
International Airport in Jordan. The company also has several local logistics centers in Saudi Arabia, Lebanon, Jordan, Egypt, Kuwait and
the USA. Aramex operates a logistics network in Europe in key locations such as Amsterdam, Manchester and Dublin.
A wide range of services is offered through these centers including warehousing and its management, distribution, supply chain management,
customs brokerage, order fulfillment, inventory management and value-added services. The company also offers multiple storage options
that range from temperature-controlled to rack, bulk and open-yard.
The logistics centers are operated using world-class warehousing systems and are monitored 24 hours a day. All shipments coming in and
out of the logistics centers can be monitored and tracked on the World Wide Web through the company’s Web site (www.aramex.com).
Domestic Express Delivery Services
The company has developed an extensive network for the express delivery of small parcels, and has the capability to pick-up and deliver
shipments from city to city in every country in which it operates, thereby satisfying customers’ local distribution and information needs.
Customers of these domestic express delivery services include e-commerce-related businesses, local distributors, pharmaceutical
companies and banks.
VI

Annual
Report 2008
VII
Document Management Services
In early 2005 Aramex acquired InfoFort, a leading document records management company in the Middle East and North Africa. InfoFort
offers a full range of comprehensive information storage, management and production services including record management, off-site data
protection, digital archiving, secure shredding and film & sound archives. The company has further strengthened its market positioning by
acquiring the UAE-based Docman Limited in November 2006 and more recently the UAE-based Metrofile Middle East LLC, which specializes
in document and records storage, scanning and management services.
In April 2008 InfoFort inaugurated its 20,000 sqm facility at Jebel Ali Free Zone, in Dubai Emirate. The AED 55 million center is the regional
hub for InfoFort’s network of Records Management Centers in Saudi, Egypt, Jordan, Oman, Bahrain, Kuwait and Qatar.
U.S. and U.K. Mail Forwarding
In 2000, the company started offering a specialized service called Shop&Ship. The service provides customers with personal mailing
addresses in the U.S. and the U.K. to use for receiving correspondence as well as personal and business packages such as Internet orders,
gifts, magazine subscriptions, bank statements, etc. The company forwards the mailbox contents to the customer at their local address in
any of the 20 countries in which this service is available and charges shipping fees.
More recently the company has expanded this shopping service to include placing orders for clients through internet shopping sites,
especially sites that do not offer international shipping options.
Magazines & Newspaper Distribution
In November 2002, the company acquired Jordan Distribution Agency, which is the leading distributor of foreign and local publications,
including mass circulation of the major newspapers in Jordan. The company has introduced the latest distribution mechanisms to the new
acquisition and expanded its network in the country.
Customers
The company has a diverse customer base, totaling over 50,000 accounts in the year 2008, which spans a broad geographic area,
concentrated mainly in the Middle East, Europe, South Asia and North America, and includes companies in a wide range of industries. Its
customers, both retail and wholesale, are also diverse in terms of their service needs. The company’s customers are not concentrated in
any one particular industry, but typical customers include trading companies, pharmaceutical companies, banks, service and information
companies, manufacturing and regional distribution companies and express companies. The broad range of services, which the company
offers, has developed in response to the growing diversity of its customers. The company’s customers are making increased use of the high
value-added services provided by the company, from express services to door-to-door airfreight forwarding to customized special services.
Geographic Breakdown of Revenues
The company sells its services primarily to customers in the Middle East, Europe, South Asia and North America. Revenues are generally
recognized at the source, i.e., by the station, which invoices the end customer. The table below shows the breakdown of revenues (in millions
of Dirhams) by geographic region for 2008 and 2007.
Year 2008
Description International Express
29%
Freight Forwarding
44%
Domestic & Others
27%
Total Company
100%
Middle east 713.8 79.2% 638.9 59.6% 463.3 80.9% 1,816.0 71.2%
Europe 61.8 7.7% 325.5 30.4% 80.1 14.0% 467.4 18.3%
North America 50.3 3.0% 41.4 3.9% 1.9 0.3% 93.6 3.7%
Asia & Indian Subcontinent 78.7 10.2% 65.7 6.1% 27.5 4.8% 171.9 6.7%
Elimination (294.4) 0.0% (158.8) 0.0% (15.8) 0.0% (468.9) 0.0%
Total 610.3 100% 912.6 100% 557.0 100% 2,080.0 100%

Year 2007
Description International Express
29%
Freight Forwarding
46%
Domestic & Others
25%
Annual
Report 2008
VIII
Total Company
100%
Middle east 578.3 76.7% 537.4 56.3% 356.4 78.2% 1,472.2 68.1%
Europe 65.1 9.4% 342.9 35.9% 72.6 14.0% 480.6 22.2%
North America 36.7 3.1% 29.5 3.1% 2.4 3.4% 68.6 3.2%
Asia & Indian Subcontinent 73.4 10.8% 45.1 4.7% 23.0 4.4% 141.6 6.5%
Elimination (234.4) 0.0% (131.0) 0.0% (13.8) 0.0% (379.2)
Total 519.1 100% 824.0 100% 440.7 100% 1,783.8 100%
Seasonality
The company’s business is seasonal in nature. Historically, the company experiences a decrease in demand for its services during the first
and third quarters, the post-winter holiday and summer vacation seasons. The company traditionally experiences its highest volume in the
fourth quarter due to the holiday season. The seasonality of the company’s sales may cause a variation in its quarterly operating results, and
a significant decrease in second or fourth quarter revenues may have an adverse effect on the company’s results of operations for that fiscal
year. However, local Middle East and Islamic holidays vary from year-to-year, as a result, the Company’s seasonality may shift over time.
Results of Operations
The following table sets forth -for the periods indicated- the percentages of total revenues represented by certain items reflected in the
company’s consolidated statements of income:
Revenues
2004 2005 2006 2007 2008
% % % % %
International express 42.5 43.2 32.2 29.1 29.3
Freight forwarding 35.4 33.1 44.8 46.2 43.9
Domestic express 13.4 14.2 13.0 12.6 14.2
Logistics 0.5 0.9 3.9 6.0 6.4
Publications and distribution 4.3 3.9 2.5 2.0 1.7
Others 3.9 4.7 3.6 4.1 4.5
Total Revenues 100.0 100.0 100.0 100.0 100.0
Shipping costs 54.5 52.4 54.6 53.2 50.1
Gross profit 45.5 47.6 45.4 46.8 49.9
Operating expenses 13.5 14.0 14.1 15.1 17.5
Selling, general and administrative expenses 23.7 23.5 23.4 23.8 23.9
Operating income 8.4 10.1 8.0 8.0 8.4
Income before income taxes 8.4 10.4 8.3 8.4 8.7
Provision for income taxes 0.5 0.5 0.3 0.5 0.5
Minority interests 1.0 1.2 1.0 1.1 1.1
Net Income 6.9 8.7 7.0 6.8 7.1

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Report 2008
IX
Impact of Inflation and Currency Fluctuations
The company does not believe that inflation or currency fluctuations have had a material adverse effect on revenues and results of
operations. However, demand for the company’s services is influenced by general economic conditions, including inflation and currency
fluctuations. Periods of economic recession, high inflation or devaluation of currencies -in countries in which the company operates- could
have a material adverse effect on the express and freight forwarding industry and the company’s results of operations.
Strategy
The company’s strategy comprises of the following key elements aimed to grow Aramex into the top five global logistics and transportation
service providers:
Geographic Expansion through Acquisitions: Expand into key geographic areas that are main pillars in global trade through acquisitions. Such
acquisitions will secure the Global Distribution Alliance, develop a more secure global network and provide Aramex with sources for growth.
Globalizing the Brand through Franchising: To supplement the acquisition strategy, Aramex plans on expanding its brand by franchising in
developing countries. This will provide Aramex with a revenue stream and expand the brand with minimal capital requirement.
Leveraging Existing Infrastructure: To further leverage the existing regional infrastructure, Aramex plans on expanding its supply chain
management and document storage services to existing Aramex locations within the Middle East and South Asia, and to continue to invest
in the company’s logistics infrastructure in the region.
Organic growth: The company plans to continue to capitalize on its reputation as a quality service provider offering a one-stop shop of
transportation and logistics solutions. A large part of this strategy involves the continued development by the company of customized
solutions for its clients in the areas of (i) Express and freight transportation solutions by air, sea and land (ii) Warehousing (iii) Value added
logistics services and (iv) Supply chain solutions
Continued emphasis on technology: The company continues to invest in technology to increase the efficiency of its operations, enhance
the quality of service, increase sales and foster growth. The company believes that constant improvements in its communications network
and information systems, such as linking all of the company’s offices via an on-line, real-time communications network, and the ability of
customers to have direct connectivity to the Company’s network, will yield continued improvements in the quality and efficiency of the
operational and customer service processes which in turn will improve the company’s operational results.
Board of Directors
The following table sets forth the names of the Company’s Directors:
Name Position
Mr. Abdullah Mazrui Chairman
Mr. Fadi Ghandour Founder, Chief Executive Officer and Director
Mr. Helal Al Merri Director
Mr. Ahmad Al-Badi Director
Mr. Arif Naqvi Director
Sheikh Tareq Qassimi Director
Mr. Ayed Aljeaid Director
Mr. Mohammed Ali Al Hasimi Director

Aramex PJSC and its subsidiaries
Consolidated financial statements
31 December 2008
Annual
Report 2008
1

Annual
Report 2008
2
Contents Page
Directors’ report 3
Independent auditors’ report 4
Consolidated income statement 5
Consolidated balance sheet 6
Consolidated statement of cash flows 7
Consolidated statement of changes in equity 8 - 9
Notes 10 - 38

Directors’ Report
Dear Shareholders,
Annual
Report 2008
We have concluded year 2008 with a strong financial performance; Aramex revenues grew from AED 1.8 billion
to AED 2.1 billion, an increase of 17% compared to year 2007. Furthermore, net profits increased by 21% over
the same period, from AED 122 million to AED 147 million.
We were able to maintain our revenue growth and profit margins at a very healthy level, a result of serious
cost cutting measures taken to control the upward spiraling costs in the first 9 months of the year
Going forward, Aramex is well positioned to deal with the challenges ahead in year 2009. We continue to
maintain a very healthy balance sheet with little debt and our non-asset based business model enables us to
maintain flexibility in our costs
We are confident of our ability to achieve long term sustainable growth for the company despite the challenges
ahead in 2009.
Abdullah Al Mazroui Fadi Ghandour
Chairman Founder and CEO
3

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Report 2008
4
Independent auditors’ report
The Shareholders
Aramex PJSC
Report on the consolidated financial statements
We have audited the accompanying consolidated financial statements of Aramex PJSC (“the Company”) and its subsidiaries (collectively
referred to as «the Group»), which comprise the consolidated balance sheet as at 31 December 2008, and the consolidated income statement,
the consolidated statement of changes in equity and the consolidated cash flow statement for the year then ended, and a summary of
significant accounting policies and other explanatory notes.
Management’s responsibility for the financial statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with
International Financial Reporting Standards. This responsibility includes designing, implementing and maintaining internal controls relevant
to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error;
selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditors’ responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in
accordance with International Standards on Auditing. Those standards require that we comply with relevant ethical requirements and plan
and perform the audit to obtain reasonable assurance whether the financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The
procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements,
whether due to fraud or error. In making those risk assessments, we consider internal controls relevant to the entity’s preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness
of accounting principles used and reasonableness of accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Opinion
In our opinion the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group
as at 31 December 2008, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance
with International Financial Reporting Standards and comply with the relevant Articles of the Company and the UAE Federal Law No. 8 of
1984 (as amended).
Report on other legal and regulatory requirements
As required by the UAE Federal Law No. 8 of 1984 (as amended), we further confirm that we have obtained all information and explanations
necessary for our audit, that proper financial records have been kept by the Company and the contents of the Directors’ report which relates
to these consolidated financial statements are in agreement with the Company’s financial records. We are not aware of any violation of
the above-mentioned Law and the Articles of Association having occurred during the year ended 31 December 2008, which may have had a
material adverse effect on the business of the Company or its financial position.
Vijendranath Malhotra Date: 26 February 2009
(Registration: No. B48)
Dubai, United Arab Emirates

Aramex PJSC and its subsidiaries
Consolidated income statement
for the year ended 31 December 2008
Note 2008 2007
AED’000 AED’000
Revenue 6 2,079,954 1,783,788
Cost of services 7 (1,041,971) (948,132)
------------ -----------
Gross profit 1,037,983 835,656
Other operating expenses 8 (364,961) (268,548)
Selling expenses (99,230) (79,224)
General and administrative expenses 9 (398,567) (344,871)
Other income (net) 10 2,787 3,566
---------- ----------
Result from operating activities 178,012 146,579
---------- ----------
Finance income 5,375 8,070
Finance expense (3,442) (4,132)
------- -------
Net finance income 11 1,933 3,938
------- -------
Profit before income tax 179,945 150,517
Income tax expense 12 (10,573) (9,450)
---------- ----------
Profit for the year 169,372 141,067
====== ======
Attributable to:
Equity holders of the Company 147,321 121,552
Minority interest 22,051 19,515
---------- ----------
Profit for the year 169,372 141,067
====== ======
Basic earnings per share (AED) 30 0.122 0.100
==== ====
The notes on pages 10 to 38 are an integral part of these consolidated financial statements.
The independent auditors’ report is set out on page 4
Annual
Report 2008
5

Annual
Report 2008
6
Consolidated balance sheet
as at 31 December 2008
Note 2008 2007
AED’000 AED’000
Assets
Property, plant and equipment 13 240,367 192,986
Goodwill 14 805,443 803,399
Other intangible assets 15 2,776 3,493
Available for sale investments 16 3,301 17,040
Other non-current assets 17 4,350 1,496
Deferred tax assets 12 964 2,428
--------- ---------
Total non-current assets 1,057,201 1,020,842
--------- ---------
Cash in hand and at bank 18 343,827 238,856
Trade receivables 19 346,270 319,152
Other current assets 20 98,009 95,985
--------- ---------
Total current assets 788,106 653,993
--------- ---------
Total assets 1,845,307 1,674,835
======= =======
Equity
Share capital 21 1,210,000 1,100,000
Statutory reserve 22(a) 25,698 13,699
Fair value reserve 22(b) 581 14,320
Translation reserve 22(c) (6,126) 3,694
Retained earnings 23 177,386 153,464
------------ ------------
Total equity attributable to equity holders of the Company 1,407,539 1,285,177
------------ ------------
Minority interest 28,956 25,444
--------- ---------
Total equity 1,436,495 1,310,621
--------- ---------
Liabilities
Loans and borrowings - non current 24 15,767 14,707
Employees’ end of service benefits 25 52,010 39,428
Deferred tax liabilities 12 597 539
--------- ---------
Total non-current liabilities 68,374 54,674
--------- ---------
Bank overdrafts 26 14,300 20,191
Loans and borrowings - current 24 11,698 13,056
Trade payables 27 113,175 132,093
Other current liabilities 28 201,265 144,200
---------- ----------
Total current liabilities 340,438 309,540
---------- ----------
Total liabilities 408,812 364,214
------------ ------------
Total equity and liabilities 1,845,307 1,674,835
======= =======
The notes on pages 10 to 38 are an integral part of these consolidated financial statements.
The Board of Directors authorized these consolidated financial statements on 25 February 2009.
__________ _____ _____ __________ _____ _____ __________ _____ _____
Abdullah Al Mazrui Fadi Ghandour Emad Shishtawi
Chairman (Director, President & CEO) (Vice President Finance)
The independent auditors’ report is set out on page 4

Consolidated statement of cash flows
for the year ended 31 December 2008
2008 2007
AED’000 AED’000
Cash flows from operating activities
Profit for the year before income tax
Adjustments for:
179,945 150,517
Depreciation 43,228 34,742
Amortization of intangible assets 717 862
Provision for doubtful debts (net) 9,981 6,751
Provision for employees’ end of service benefits 15,747 13,289
Net finance income (1,933) (3,938)
Loss on sale of property, plant and equipment 853 298
Profit on sale of investment (512) -
---------- ----------
Operating profit before working capital changes 248,026 202,521
Change in trade receivables (37,098) (64,248)
Change in other current assets (2,024) (17,655)
Change in trade payables (18,918) 14,555
Change in other current liabilities 53,643 20,515
Employees’ end of service benefits paid (2,970) (5,113)
Directors’ fees paid (1,400) (800)
---------- ----------
Cash generated by operations 239,259 149,775
Income tax paid (5,631) (7,815)
---------- ----------
Net cash from operating activities 233,628 141,960
---------- ----------
Cash flows from investing activities
Acquisition of property, plant and equipment (96,614) (97,828)
Proceeds from sale of property, plant and equipment 1,666 786
Acquisition of intangible assets - (742)
Consideration paid for acquisition of GDA Singapore - (1,635)
Adjustment to goodwill - (40)
Acquisition of minority interest (2,044) (5,907)
Proceeds from sale of available for sale investment 512 -
Change in other non-current assets (2,855) 6,953
Change in margin deposits (735) (1,383)
Interest income received 5,375 8,070
---------- ----------
Net cash used in investing activities (94,695) (91,726)
---------- ----------
Cash flows from financing activities
Interest paid (3,442) (4,132)
Net movement in bank borrowings (299) 6,078
Dividends paid to minority shareholders (20,035) (14,346)
Amount paid to former shareholders of Two Way - (16,522)
Net other movements in minority interest 1,495 1,270
---------- ----------
Net cash used in financing activities (22,281) (27,652)
---------- ----------
Net increase in cash and cash equivalents 116,652 22,582
Cash and cash equivalents at beginning of the year 212,602 190,447
Effect of exchange rate changes on cash held (6,526) (427)
---------- ----------
Cash and cash equivalents at end of the year (note 18) 322,728 212,602
====== ======
The notes on pages 10 to 38 are an integral part of these consolidated financial statements.
The independent auditors’ report is set out on page 4
Annual
Report 2008
7

Annual
Report 2008
8
Consolidated statement of changes in equity
for the year ended 31 December 2008
Attributable to the equity holders of the Company
Share capital Translation Statutory Fair value Retained Minority Total
Number Amount reserve reserve reserve earnings Total interest equity
AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 AED’000
Balance at 1 January 2007 1,000,000,000 1,000,000 1,785 1,978 - 144,433 1,148,196 19,287 1,167,483
----------------- ------------ -------- ------- -------- ---------- ------------ -------- ------------
Directors’ fees paid (refer note 23 (b)) - - - - - (800) (800) - (800)
Translation adjustment - - 1,909 - - - 1,909 (147) 1,762
Net change in fair value of available
for sale investments (refer note 16) - - - - 14,320 - 14,320 - 14,320
----------------- ------------ ------- ------- -------- ---------- --------- --------- ---------
Total income and expense recognized - - 1,909 - 14,320 (800) 15,429 (147) 15,282
directly in equity
Profit for the year - - - - - 121,552 121,552 19,515 141,067
----------------- ------------ ------- ------- -------- ---------- ---------- --------- ----------
Total recognized income and expense - - 1,909 - 14,320 120,752 136,981 19,368 156,349
Bonus shares issued (refer note 21) 100,000,000 100,000 - - - (100,000) - - -
Transfer to statutory reserve - - - 11,721 - (11,721) - - -
Acquisition of minority interest - - - - - - - (282) (282)
(refer note 5)
Dividends paid during the year - - - - - - - (14,346) (14,346)
Net other movements during the year - - - - - - - 1,417 1,417
----------------- ------------ ------- -------- -------- ---------- ------------ --------- ------------
Balance at 31 December 2007 1,100,000,000 1,100,000 3,694 13,699 14,320 153,464 1,285,177 25,444 1,310,621
========== ======= ==== ===== ===== ====== ======= ===== =======

Consolidated statement of changes in equity
for the year ended 31 December 2008
Attributable to the equity holders of the Company
Share capital Translation Statutory Fair value Retained Minority Total
Number Amount reserve reserve reserve earnings Total interest equity
AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 AED’000
Balance at 1 January 2008 1,100,000,000 1,100,000 3,694 13,699 14,320 153,464 1,285,177 25,444 1,310,621
----------------- ------------ ------- ------- -------- ---------- ------------ --------- ------------
Directors’ fees paid (refer note 23 (b)) - - - - - (1,400) (1,400) - (1,400)
Translation adjustment - - (9,820) - - - (9,820) 168 (9,652)
Adjustment on sale of available
for sale investments (refer note 16) - - - - (665) - (665) - (665)
Net change in fair value of available
for sale investments (refer note 16) - - - - (13,074) - (13,074) - (13,074)
----------------- ------------ -------- ------- -------- ---------- ---------- ---- -----------
Total income and expense recognized - - (9,820) - (13,739) (1,400) (24,959) 168 (24,197)
directly in equity
Profit for the year - - - - - 147,321 147,321 22,051 169,372
----------------- ------------ -------- ------- -------- ---------- ---------- --------- ----------
Total recognized income and expense - - (9,820) - (13,739) 145,921 122,362 22,219 144,581
Bonus shares issued (refer note 21) 110,000,000 110,000 - - - (110,000) - - -
Transfer to statutory reserve - - - 11,999 - (11,999) - - -
Acquisition of minority interest - - - - - - - (144) (144)
(refer note 5)
Dividends paid during the year - - - - - - - (20,035) (20,035)
Net other movements during the year - - - - - - - 1,472 1,472
----------------- ------------ -------- -------- ----- ---------- ------------ --------- -------------
Balance at 31 December 2008 1,210,000,000 1,210,000 (6,126) 25,698 581 177,386 1,407,539 28,956 1,436,495
========== ======= ==== ===== ===== ====== ======= ===== =======
Annual
Report 2008
In accordance with the interpretation of Article 118 of the UAE Federal Law No. 8 of 1994 by the Ministry of Economy & Commerce, directors’ fees have been treated as an appropriation
of shareholders’ funds.
9
The notes on pages 10 to 38 are an integral part of these consolidated financial statements.

Annual
Report 2008
10
Notes
(forming part of the consolidated financial statements)
1- Legal status and principal activities
Aramex PJSC (“the Company”) is a Public Joint Stock Company registered in the Emirate of Dubai, UAE on 15 February 2005 under UAE Federal
law No 8 of 1984 (as amended). The consolidated financial statements of the Company as at 31 December 2008 comprise the Company and
its subsidiaries (collectively referred to as “the Group” and individually as “Group entities”).
The principal activities of the Company is to invest in the freight, express, logistics and supply chain management businesses through
acquiring and owning controlling interests in companies in the Middle East and other parts of the world.
The Company’s registered office is, Office No 5, Abdul Rahman Al Zaroani real estate, Plot 121-221, Dubai Airport, Deira, Dubai, United Arab Emirates.
On 22 June 2005, the Company acquired 100% shareholding in Aramex International Limited (“AIL”) from Aramex Holding Limited, a related
party incorporated under the laws of Bermuda.
AIL provides transportation solutions including express delivery and freight forwarding services mainly to/from countries in the Middle East.
For the purpose of the express business, AIL utilizes its main stations (hubs) in Dubai and London. AIL’s operations are managed through
a regional office, which was registered in Jordan on 15 March 1988 under the name of AIL (“the Regional Office”) pursuant to the foreign
companies law No. (58) of 1985. The operations of the Regional Office are facilitated by the hubs of the Aramex network.
The Company was listed on the Dubai Financial Market on 9 July 2005.
2- Basis of preparation
Statement of compliance
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and the
requirements of the UAE Federal law No. 8 of 1984 (as amended).
Basis of measurement
These consolidated financial statements have been prepared under the historical cost convention basis, except for available for sale
investments and derivative financial instruments, which are measured at fair value.
Functional and presentation currency
These consolidated financial statements are presented in United Arab Emirates (“AED”), which is the Company’s functional currency. All
financial information presented in AED has been rounded to the nearest thousand, except wherever stated otherwise.
Use of estimates and judgments
The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application
of accounting policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in
which the estimate is revised and in any future periods affected.
In particular, information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that
have the most significant effect on the amount recognized in the financial statements are described in note 36.
3- Significant accounting policies
The following accounting policies, which comply with IFRS, have been applied consistently to all periods presented in these consolidated
financial statements, and have been applied consistently by Group entities.

Notes (Continued)
3- Significant accounting policies (Continued)
Basis of consolidation
Annual
Report 2008
Subsidiaries
Subsidiaries are entities controlled by the Group. Control exists when the Group has the power to govern the financial and operating policies of an
entity so as to obtain benefits from its activities. In assessing control, potential voting rights that presently are exercisable are taken into account.
The financial statements of the subsidiaries are included in the consolidated financial statements from the date that control commences until
the date that control ceases. Refer to note 34 for the list of significant subsidiaries included in these consolidated financial statements.
Special purpose entities
Special purpose entities (“SPEs”) are consolidated if, based on an evaluation of the substance of the relationship of the entity with the Group
and the SPEs risks and rewards, the Group concludes that it controls the SPEs.
Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealized income and expenses arising from intra-group transactions, are eliminated in full
in preparing the consolidated financial statements. Unrealized losses are eliminated in the same way as unrealized gains, but only to the
extent that there is no evidence of impairment.
Foreign currency
Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of the Group entities at exchange rates ruling at the
dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the
respective functional currencies at the exchange rate at that date. Non-monetary assets and liabilities denominated in foreign currencies,
which are stated at historical cost, are translated to the functional currency at the exchange rate ruling on the date of the transaction.
Realized and unrealized exchange gains and losses are accounted for in the income statement.
Foreign operations
The financial statements of foreign subsidiaries where the local currency is their functional currency (substantially all stations) are translated
into AED using exchange rates in effect at the reporting date for assets and liabilities and average exchange rates during the reporting
period for results of operations. Adjustments resulting from translation of financial statements are reflected as a separate component of
shareholders’ equity.
Exchange gains and losses resulting from transactions of the Group which are made in currencies different from their own are included in the
income statement as they occur. The revenue and expenses of foreign operations in hyperinflationary economies are translated to AED at
the exchange rates ruling at the balance sheet date. Prior to translating the financial statements of foreign operations in hyperinflationary
economies, the financial statements are restated to account for changes in the general purchasing power of the local currency.
Foreign exchange gains and losses arising from a monetary item receivable from or payable to a foreign operation, the settlement of which
is neither planned nor likely in the foreseeable future, are considered to form part of the net investment in a foreign operation and are
recognised directly in equity.
Revenue
Revenue represents the value of services rendered to customers and is stated net of discounts and sales taxes or similar levies.
Revenue recognition
Express revenue is recognized upon receipt of shipment from the customer.
Freight forwarding revenue is recognized upon the delivery of freight to the destination or to the air carrier.
Catalogue shopping and shop ‘n’ ship services revenue is recognized upon the receipt of the merchandise by the customers.
Revenue from magazines and newspapers distribution is recognized when it is delivered to the customers.
Revenue from logistics and document storage services is recognized when the services are rendered.
Cash and cash equivalents
Cash and cash equivalents comprises cash balances, short term deposits, call deposits and current account with banks. For the purpose
of the consolidated statement of cash flows, bank overdrafts that are repayable on demand and form an integral part of the Group’s cash
management are included as a component of cash and cash equivalents. Restricted cash primarily represented by margin deposits are not
included within cash and cash equivalents.
11

Annual
Report 2008
12
Notes (Continued)
3- Significant accounting policies (Continued)
Property, plant and equipment
Recognition and measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses (see accounting
policy on impairment), if any. Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self constructed
assets includes cost of material and direct labour, any other costs directly attributable to bringing the asset to a working condition for its
intended use, and the costs of dismantling and removing the items and restoring the site on which they are located. Purchased software that
is integral to the functionality of the related equipment is capitalized as part of that equipment. When parts of an item of property, plant and
equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.
Subsequent costs
The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that
future economic benefits embodied within the part will flow to the Group and its cost can be measured reliably. The cost of the day to day
servicing of property, plant and equipment are recognised in the income statement as incurred.
Depreciation
Depreciation is charged in the income statement on a straight-line basis over the estimated useful lives of each part of an item of property,
plant and equipment. Leased assets are depreciated over the shorter of the lease terms or their useful lives. Land is not depreciated.
The estimated useful lives for the current and comparative periods are as follows:
Leasehold improvements
Life (years)
4-7
Building 14-15
Furniture and fixtures 5-10
Office equipment 3-7
Computers 3-5
Vehicles 4-5
The depreciation methods, useful lives and residual values are reassessed at the reporting date.
Intangible assets
Goodwill
Goodwill (including negative goodwill) arises on acquisition of subsidiaries, associates and joint ventures.
On acquisition of subsidiaries, goodwill represents the excess of the cost of the acquisition over the Group’s interest in the net fair value
of the identifiable assets, liabilities and contingent liabilities of the acquiree at the date of acquisition. Negative goodwill arising on an
acquisition is recognized immediately in the income statement.
Cost of acquisition also includes contingent consideration. A liability is recognised for contingent consideration as soon as the payment
becomes probable and the amount can be measured reliably. The purchase price is subsequently adjusted against goodwill or negative
goodwill if the estimate of the amount payable is revised.
Goodwill arising on the acquisition of minority interest in a subsidiary represents the excess of the cost of the additional investment over
the carrying amount of net assets acquired at the date of exchange.
Subsequent to the initial measurement, goodwill is measured at cost less accumulated impairment losses.
Other intangible assets
Intangible assets, other than goodwill, that are acquired by the Group and which have finite useful lives, are stated at cost less accumulated
amortization and accumulated impairment losses, if any. Amortisation is recognized in the income statement on a straight line basis over
the estimated useful lives of intangible assets. The estimated useful life of the other intangible assets is between 3 to 10 years.
Prepaid agency fees
Amounts paid in advance to agents to purchase or alter their agency rights are accounted for as prepayments. As these amounts are paid in lieu of
annual payments they are expensed to the income statement over the period equivalent to the number of years of agency fees paid in advance.

Notes (Continued)
3- Significant accounting policies (Continued)
Financial instruments
Annual
Report 2008
Non-derivative financial instruments
Non-derivative financial instruments comprise available for sale investments, trade receivables, other receivables, cash in hand and at bank,
trade payables, current and non-current liabilities and loans and borrowings from banks.
Non-derivative financial instruments are recognized initially at fair value plus for instruments not at fair value through profit or loss any directly
attributable transaction costs. Subsequent to initial recognition non-derivative financial instruments are measured as described below.
A financial instrument is recognized if the Group becomes a party to the contractual provisions of the instrument. Financial assets are
derecognized if the Group’s contractual rights to the cash flows from the financial assets expire or if the Group transfers the financial asset
to another party without retaining control or substantially all risks and rewards of the asset. Regular way purchases and sales of financial
assets are accounted for at trade date, i.e., the date that the Group commits itself to purchase or sell the asset. Financial liabilities are
derecognized if the Group’s obligations specified in the contract expire or are discharged or cancelled.
Available for sale financial assets
The Group’s investments in certain equity securities are classified as available for sale financial assets. Subsequent to initial recognition,
they are measured at fair value and changes therein, other than impairment losses and foreign exchange gains and losses on available
for sale monetary items, are recognised directly in equity. When an investment is derecognized, the cumulative gain or loss in equity is
transferred to the income statement.
Other
Other non derivative financial assets are measured at amortized cost using the effective interest method less any impairment losses.
Derivative financial instruments
The Group holds derivative financial instruments to hedge its foreign currency risk exposures. Embedded derivatives are separated from the
host contract and accounted for separately if the economic characteristics and risks of the host contract and the embedded derivative are
not closely related, a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative, and
the combined instrument is not measured at fair value through profit or loss.
Derivatives are recognised initially at fair value; attributable transaction costs are recognised in profit or loss when incurred. Subsequent to
initial recognition, derivatives are measured at fair value, and changes therein are accounted for as described below.
Economic hedges
Hedge accounting is not applied to derivative instruments that economically hedge monetary assets and liabilities denominated in
foreign currencies. Changes in the fair value of such derivatives are recognised in the income statement as part of foreign currency gains
and losses.
Impairment
Financial assets
A financial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on the
estimated future cash flows of that asset.
An impairment loss in respect of a financial asset measured at amortized cost is calculated as the difference between its carrying amount,
and the present value of the estimated future cash flows discounted at the original effective interest rate. Individually significant financial
assets are tested for impairment on an individual basis. The remaining financial assets are assessed collectively in groups that share similar
credit risk characteristics. All impairment losses are recognized in the income statement. An impairment loss is reversed if the reversal can
be related objectively to an event occurring after the impairment loss was recognized.
Non-financial assets
The carrying amounts of the Group’s non-financial assets, are reviewed at each reporting date to determine whether there is any indication
of impairment. If any such indication exists then the asset’s recoverable amount is estimated. For goodwill and intangible assets that have
indefinite useful lives or that are not yet available for use, recoverable amount is estimated at each reporting date. An impairment loss is
recognized if the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. Impairment losses are recognized
in the income statement.
13

Annual
Report 2008
14
Notes (Continued)
3- Significant accounting policies (Continued)
Financial instruments (Continued)
The recoverable amount of an asset or its cash generating unit is the greater of its value in use and its fair value less costs to sell. In
assessing value in use, the estimated future cash flows are discounted to their present value using a pre tax discount rate that reflects
current market assessments of time value of money and risks specific to the asset. For the purpose of impairment testing, assets are
grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash
inflows of other assets or groups of assets (the “cash-generating unit”). The goodwill acquired in a business combination, for the purpose of
impairment testing, is allocated to cash-generating units that are expected to benefit from the synergies of the combination.
An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised in prior periods are
assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there
has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the
asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no
impairment loss had been recognised.
Provisions
A provision is recognized if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated
reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.
Employees’ end of service benefits
The provision for employees’ end of service benefits, disclosed as a long-term liability, is calculated in accordance with the UAE Federal
Labour Law. Some of the Company’s subsidiaries are also required, by their respective labour laws, to provide indemnity payments upon
termination of relationship with their employees. The benefit accrues to employees on a pro-rata basis during their employment period and
is based on each employee’s current salary.
Leases
Finance leases
Leases in terms of which the Group assumes substantially all the risks and rewards of ownership are classified as finance leases. Upon
initial recognition the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease
payments. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset.
Operating leases
Payments made under operating lease are recognized in the income statement on a straight-line basis over the terms of the lease. Lease
incentives received are recognized in the income statement as an integral part of the total lease expense, over the term of the lease. The
Group leases land, office premises, warehouses and transportation equipment under various operating leases, some of which are renewable
annually.
Finance income and expenses
Finance income comprises interest income on funds invested. Interest income is recognized as it accrues, using the effective interest rate method.
Finance expense comprises interest expense on borrowings. All borrowing costs are recognized in the income statement using the effective
interest rate method. However, borrowing costs that are directly attributable to the acquisition or construction of property, plant and
equipment are capitalized as part of the cost of that asset. Capitalization of borrowing costs ceases when substantially all the activities
necessary to prepare the asset for its intended use or sale are complete.
Income taxes
The Group provides for income taxes in accordance with IAS 12. As the Company is incorporated in the UAE, profits from operations of the Company
are not subject to taxation. However, certain subsidiaries of the Company are based in taxable jurisdictions and are therefore liable to tax. Income
tax on the profit or loss for the year comprises of current and deferred tax on the profits of these subsidiaries. Current tax is the expected tax
payable on the taxable income for the year, using tax rates enacted or substantially enacted at the reporting date, and any adjustments to
tax payable in respect of previous years. Deferred tax is provided using the balance sheet liability method, providing for temporary differences
between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.
A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the asset can be
utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related
tax benefit will be realized.

Notes (Continued)
3- Significant accounting policies (Continued)
Annual
Report 2008
Earnings per share
The Group presents basic earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable
to ordinary shareholders of the Company by the weighted average number of shares outstanding during the period. The weighted average
number of ordinary shares outstanding during the period and for all periods presented is adjusted for the issue of bonus shares.
Segment reporting
A segment is a distinguishable component of the Group that is engaged either in providing related services (business segment), or in
providing products or services within a particular economic environment (geographical segment), which is subject to risks and rewards
that are different from those of other segments. Segment information is presented in respect of the Group’s business and geographical
segments. The Group’s primary format for segment reporting is based on business segments.
New standards and interpretations not yet effective
Certain new standards, amendments to standards and interpretations are not yet effective for the year ended 31 December 2008 and
therefore have not been applied in preparing these consolidated financial statements. With particular relevance to the Group are:
• IFRS 8 ‘Operating Segments’ introduces the “management approach” to segment reporting. IFRS 8, which becomes mandatory for the
Group’s 2009 consolidated financial statements, will require a change in the presentation and disclosure of segment information based on
the internal reports regularly reviewed by the Group’s chief operating decision maker in order to assess each segment’s performance and to
allocate resources to them. Currently, the Group presents segment information in respect of its business and geographical segments.
• Revised IAS 23 ‘Borrowing Costs’ removes the option to expense borrowing costs and requires that an entity capitalise borrowing costs
directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset. The revised IAS
23 will become mandatory for the Group’s 2009 consolidated financial statements. Currently, the Group follows the policy of capitalising
borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset.
Accordingly, the adoption of the revised IAS 23 is not expected have a material impact on the consolidated financial statements.
• Revised IAS 1 Presentation of Financial Statements (2007) introduces the term total comprehensive income, which represents changes in
equity during a period other than those changes resulting from transactions with owners in their capacity as owners. Total comprehensive
income may be presented in either a single statement of comprehensive income (effectively combining both the income statement and
all non-owner changes in equity in a single statement), or in an income statement and a separate statement of comprehensive income.
However, the revised IAS 1, which becomes mandatory for the Group’s 2009 consolidated financial statements, will have a significant
impact on the presentation of the Group’s consolidated financial statements. The Group plans to provide total comprehensive income in a
single statement of comprehensive income for its 2009 consolidated financial statements.
• Amended IAS 27 Consolidated and Separate Financial Statements (2008) requires accounting for changes in ownership interests by the
Group in a subsidiary, while maintaining control, to be recognised as an equity transaction. When the Group loses control of a subsidiary, any
interest retained in the former subsidiary will be measured at fair value with the gain or loss recognised in profit or loss. The amendments
to IAS 27, which becomes mandatory for the Group’s 2010 consolidated financial statements, are not expected to have a significant
impact on these consolidated financial statements.
• Amendment to IFRS 2 Share-based Payment – Vesting Conditions and Cancellations clarifies the definition of vesting conditions, introduces the
concept of non-vesting conditions, requires non-vesting conditions to be reflected in grant-date fair value and provides the accounting treatment
for non-vesting conditions and cancellations. The amendments to IFRS 2 will become mandatory for the Group’s 2009 consolidated financial
statements, with retrospective application and is not expected to have a significant impact on the consolidated financial statements.
• Revised IFRS 3 Business Combinations (2008) incorporates the following changes that are likely to be relevant to the Group’s operations:
- The definition of a business has been broadened, which is likely to result in more acquisitions being treated as business combinations.
– Contingent consideration will be measured at fair value, with subsequent changes therein recognised in profit or loss.
– Transaction costs, other than share and debt issue costs, will be expensed as incurred.
– Any pre-existing interest in the acquiree will be measured at fair value with the gain or loss recognised in profit or loss.
– Any non-controlling (minority) interest will be measured at either fair value, or at its proportionate interest in the identifiable assets and
liabilities of the acquiree, on a transaction-by-transaction basis.
Revised IFRS 3, which becomes mandatory for the Group’s 2010 consolidated financial statements, will be applied prospectively and therefore
there will be no impact on prior periods in the Group’s 2010 consolidated financial statements.
15

Annual
Report 2008
16
Notes (Continued)
4- Financial risk management
Overview
The Group has exposure to the following risks from its use of financial instruments:
· Credit risk
· Liquidity risk
· Market risk.
This note presents information about the Group’s exposure to each of the above risks, the Group’s objectives, policies and processes for
measuring and managing risk, and the Group’s management of capital.
The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management framework. Senior
Group management are responsible for developing and monitoring the Group’s risk management policies and report regularly to the Board
of Directors on their activities.
The Group’s current financial risk management framework is a combination of formally documented risk management policies in certain
areas and informal risk management practices in others. The Group’s risk management policies (both formal and informal) are established
to identify and analyse the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits.
Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities.
The Group Audit Committee oversees how management monitors compliance with the Group’s risk management policies and procedures
and reviews the adequacy of the risk management framework in relation to the risks faced by the Group. The Group Audit Committee is
assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and ad hoc reviews of risk management controls and
procedures, the results of which are reported to the Group Audit Committee.
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual
obligations, and arises principally from the Group’s receivables from customers, other receivables and balances with banks.
Trade and other receivables
The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the Group’s
customer base, including the default risk of the industry and country in which customers operate, has less of an influence on credit risk.
The Group earns its revenues from a large number of customers spread across different geographical segments. However, geographically 77
percent of the Group’s trade receivables are based in Middle East and North Africa.
Management have established a credit policy under which new customers are analysed individually for creditworthiness before the Group’s
standard payment and delivery terms and conditions are offered. Purchase limits are established for customers, which represent the
maximum open amount without requiring approval from senior Group management; these limits are reviewed regularly.
A significant portion of the Group’s customers have been transacting with the Group for over a number of years, and losses have occurred
infrequently. In monitoring customer credit risk, customers are grouped according to their credit characteristics, including whether they are
an individual or legal entity, whether they are an agent, wholeseller, retail or end-user customer, geographic location, industry, aging profile,
maturity and existence of previous financial difficulties.
The Group establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and other receivables.
The main components of this allowance are a specific loss component that relates to individually significant exposures, and a collective loss
component established for groups of similar assets in respect of losses that have been incurred but not yet identified. The collective loss
allowance is determined based on historical data of payment statistics for similar financial assets.
Balances with banks
The Group limits its exposure to credit risk by only placing balances with international and local banks of repute. Given the profile of its
bankers, management does not expect any counterparty to fail to meet its obligations.
Guarantees
The Group’s policy is to provide financial guarantees only to wholly-owned subsidiaries. For details of guarantees outstanding at the reporting
date refer note 32.

Notes (Continued)
4- Financial risk management (Continued)
Annual
Report 2008
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s approach to managing
liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and
stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.
The Group currently has sufficient cash on demand to meet expected operational expenses, including the servicing of financial obligations.
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Group’s
income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk
exposures within acceptable parameters, while optimising the return.
The Group buys and sells derivatives, in order to manage market risks. All such transactions are carried out under the supervision of senior
Group management. The Group does not apply hedge accounting.
Currency risk
The Group is exposed to currency risk mainly on purchases and sales that are denominated in a currency other than the respective functional
currencies of the Group entities, primarily the United States Dollar (USD), Euro, Egyptian Pound, Sterling (GBP) and the Indian Rupee (INR).
The currencies in which these transactions are primarily denominated are Euro, USD, and GBP. The Company’s and a number of other Group
entities functional currencies are either the USD or currencies that are pegged to the USD. As significant portion of the Group’s transactions
are denominated in USD, this reduces currency risk. The Group also has currency exposures on intra group transactions in the case of Group
entities where the functional currency is not the USD or a currency that is not pegged to the USD. Intra Group transactions are primarily
denominated in USD.
The Group has recently started to hedge some its trade payables denominated in certain foreign currencies mainly Euros. The Group uses
forward exchange contracts to hedge its currency risk, most with a maturity of less than one year from the reporting date. However, a
significant portion of the Group’s trade payables and all of its foreign currency receivables, denominated in a currency other than the
functional currency of the respective Group entities, are subject to risks associated with currency exchange fluctuation. The Group reduces
some of this currency exposure by maintaining some of its bank balances in foreign currencies in which some of its trade payables are
denominated. This provides an economic hedge.
A significant portion of the Group’s borrowings are denominated in the functional currencies of the Group entities who have taken out the loan.
In respect of other monetary assets and liabilities denominated in foreign currencies, the Group ensures that its net exposure is kept to an
acceptable level by buying or selling foreign currencies at spot rates when necessary to address short-term imbalances.
The Group’s investment in foreign subsidiaries is not hedged as those currency positions are considered to be long term in nature.
Interest rate risk
The Group’s exposure to interest rate risk is primarily on its borrowings and deposits with banks. The interest rate on the Group’s financial instruments
is based on market rates. The Group adopts a policy of ensuring a mix between fixed interest borrowings and variable interest borrowings.
Other market price risk
Equity price risk arises from available-for-sale equity securities held by the Group. Management of the Group monitors equity securities in
its investment portfolio based on market indices. Material investments within the portfolio are managed on an individual basis and all buy
and sell decisions are approved by the Board of Directors.
The primary goal of the Group’s investment strategy is to maximise investment returns.
Quantitative disclosures in respect of these financial instruments have been mentioned in note 35.
Capital management
The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future
development of the business. The Board of Directors monitors the return on capital, which the Group defines as net operating income divided
by total shareholders’ equity, excluding minority interests. The Board of Directors also monitors the level of dividends to shareholders.
17

Annual
Report 2008
18
Notes (Continued)
4- Financial risk management (Continued)
Capital management(Continued)
The Board seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowings and the advantages
and security afforded by a sound capital position. The Group currently has minimal borrowings. In the medium to long term, the Group believes
that having a debt to equity ratio of upto 50% would still enable the Group to achieve its objective of maintaining a strong capital base.
There were no changes in the Group’s approach to capital management during the year.
Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements other than the statutory requirements
in the jurisdictions where the Group entities are incorporated.
5- Acquisition of subsidiary and minority interest
Business combination
Acquisition of minority interest
On 30 December 2008, the Group has acquired the remaining 15% shareholding in Two Way Holland from the minority shareholder for a
consideration of AED 2.18 million in cash. The carrying amount of the subsidiary’s net assets as on the date of further acquisition was AED 0.96
million. The Group recognized a decrease in minority interest of AED 0.14 million and additional goodwill of AED 2.04 million. Also refer note 14.
Business combinations in the previous year
During the year ended 31 December 2007, the following subsidiary was acquired by the Group:
GDA Singapore Pte Ltd
On 1 November 2007, the Group acquired the business of GDA Singapore Pte Ltd (“GDA Singapore”) for an amount of AED 1.64 million, in
cash resulting in goodwill of AED 1.5 million recognized on acquisition. GDA Singapore is mainly involved in carrying on express business in
Singapore. Also refer note 14.
Acquisition of minority interest in the previous year
Aramex Lanka (Private) Limited and Aramex Freight Corporation Lanka (Private) Limited (“Aramex Lanka”)
With effect from 1 May 2007, the Group has acquired the remaining 50% of the share capital of Aramex Lanka (Private) Limited and Aramex
Freight Corporation Lanka (Private) Limited, subsidiaries of the Group, for a total consideration of AED 5.91 million. The carrying amount of
the subsidiaries’ net assets on the date of further acquisition was AED 0.28 million and AED 0.29 million, respectively. The Group recognized
a decrease in minority interest of AED 0.29 million and additional goodwill of AED 5.63 million. Also refer note 14.
6- Revenue
2008 2007
AED’000 AED’000
International express* 610,343 519,085
Freight forwarding* 912,599 823,993
Domestic express* 295,665 224,988
Logistics 132,654 106,766
Publications and distribution 35,955 35,952
Others** 92,738 73,004
------------ ------------
2,079,954 1,783,788
======= =======
* Includes value added tax/postal levy where not shown separately on the face of invoice.
** Represents revenues from other special services which the Group renders, including airline ticketing and travel, visa services and revenues
from document retention business. All related costs are reflected in cost of services.

Notes (Continued)
7- Cost of services
2008 2007
AED’000 AED’000
International express 251,747 219,913
Freight forwarding 652,518 596,226
Domestic express 67,527 51,370
Logistics 27,300 30,504
Publications and distributions 27,991 30,450
Others 14,888 19,669
------------ ----------
1,041,971 948,132
======= ======
Cost of service includes value added tax/ postal levy where not shown separately on the face of the invoice.
8- Other operating expenses
2008 2007
AED’000 AED’000
Staff salaries and benefits 252,643 192,333
Vehicle running and maintenance 51,491 37,809
Supplies 19,634 16,659
Communication expenses 4,776 2,723
Depreciation 4,017 3,154
Others 32,400 15,870
9- General and administrative expenses
---------- ----------
364,961 268,548
======= ======
2008 2007
AED’000 AED’000
Staff salaries and benefits 176,793 146,071
Rentals 45,637 46,787
Depreciation 39,211 31,588
Communication expense 21,054 19,913
Repairs and maintenance 12,017 11,447
Travel expenses 8,691 9,475
Allowance for impairment losses 9,981 6,751
Utilities 7,925 6,641
Printing and stationary 5,706 5,938
Entertainment 3,922 3,940
Vehicle running expenses 4,450 4,676
Insurance 3,249 3,682
Conference and meeting expenses 2,444 3,971
Sponsorship fees 1,252 1,667
Government fees and taxes 2,049 1,835
Contributions and donations 4,949 388
Others 49,237 40,101
---------- ----------
398,567 344,871
====== ======
Annual
Report 2008
19

Annual
Report 2008
20
Notes (Continued)
10- Other income (net)
2008 2007
AED’000 AED’000
Exchange gain 1,771 3,442
Loss on sale of fixed assets (852) (298)
Gain on sale of available for sale investment 512 -
Miscellaneous income 1,356 422
11- Net finance income
------- -------
2,787 3,566
==== ====
Finance income primarily represents interest on deposits with banks. Finance income is stated net of interest expense on loans and other
borrowings of AED 3.44 million (2007: AED 4.13 million). During the year, the Company has waived off interest amounting to AED 1.52 million
(2007: AED 1.52 million) due against funds advanced to a related party. Also refer note 20.
12- Income taxes
Income tax expense in the income statement
The charge for income tax on results of operations of foreign subsidiaries comprises of the following:
2008 2007
AED’000 AED’000
Current tax expense 9,256 8,593
Deferred tax expense 1,317 857
-------- -------
10,573 9,450
===== ====
Deferred income taxes are provided in accordance with the liability method under IAS 12, for the temporary differences between the
carrying amounts of Group’s assets and liabilities for financial reporting purposes and the amounts used for tax purposes. The composition
of deferred taxes reflected on the balance sheet is as follows:
2008 2007
AED’000 AED’000
Provision for doubtful accounts 52 1,068
Depreciation (475) (408)
Termination indemnities 244 382
Net operating losses carried forward 642 960
Capital allowance (46) (42)
Others (50) (71)
----- -------
367 1,889
=== ====
Recognised as follows:
As deferred tax assets 964 2,428
As deferred tax liabilities (597) (539)
----- -------
367 1,889
=== ====
The Group’s consolidated effective tax rate is 5.88 % for 2008 (2007: 6.27%).

Notes (Continued)
12- Income taxes (Continued)
Annual
Report 2008
In some countries the tax returns for certain years have not yet been reviewed by the tax authorities. In certain tax jurisdictions, the Group
has provided for its tax exposures based on the current interpretation and enforcement of the tax legislation in the jurisdiction. However, the
Group’ management is satisfied that adequate provisions have been made for potential tax contingencies. Also refer note 36.
13- Property, plant and equipment
Cost – 2007
At the
beginning
of the year
Addition on
acquisition of
subsidiaries Additions Transfers Disposals
Exchange
differences
21
At the
end of
the year
AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 AED’000
Land 7,829 - 1,185 - - 2 9,016
Leasehold improvements 31,585 32 10,811 - (1,344) 980 42,064
Building 24,287 - 9,149 - (5,164) - 28,272
Furniture and fixtures 19,878 28 6,279 - (476) 662 26,371
Office equipment 50,511 30 14,880 - (1,525) 1,767 65,663
Computers 63,671 - 15,345 - (1,524) 2,070 79,562
Vehicles 44,704 27 6,808 - (4,589) 1,440 48,390
Capital work in progress - - 33,371 - - - 33,371
---------- ----- --------- ----- --------- ------- ----------
At 31 December 2007 242,465 117 97,828 - (14,622) 6,921 332,709
Cost – 2008
====== === ===== === ===== ==== ======
Land 9,016 - - - (83) (12) 8,921
Leasehold improvements 42,064 - 5,153 - (2,769) (1,535) 42,913
Building 28,272 - 1,207 43,351 - - 72,830
Furniture and fixtures 26,371 - 10,977 3,522 (2,167) (1,000) 37,703
Office equipment 65,663 - 4,403 1,453 (2,555) (3,058) 65,906
Computers 79,562 - 14,323 216 (8,850) (2,766) 82,485
Vehicles 48,390 - 15,275 489 (6,291) (1,347) 56,516
Capital work in progress 33,371 - 45,277 (49,031) - - 29,617
---------- ------ --------- --------- --------- ------- ----------
At 31 December 2008 332,709 - 96,615 - (22,715) (9,718) 396,891
====== ==== ===== ===== ===== ==== ======

Annual
Report 2008
22
Notes (Continued)
13- Property, plant and equipment (Continued)
Depreciation – 2007
At the
beginning
of the year
Addition on
acquisition of
subsidiaries Additions Transfers Disposals
Exchange
differences
At the
end of
the year
AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 AED’000
Leasehold improvements 13,509 5 4,969 - (1,239) 381 17,625
Building 2,999 - 1,892 - (201) - 4,690
Furniture and fixtures 11,575 3 2,385 - (377) 422 14,008
Office equipment 21,903 3 6,581 - (1,411) 1,053 28,129
Computers 39,381 - 9,269 - (1,256) 1,346 48,740
Vehicles 24,955 4 9,646 - (9,054) 980 26,531
--------- ----- -------- ----- --------- ------- ----------
At 31 December 2007 114,322 15 34,742 - (13,538) 4,182 139,723
Depreciation – 2008
====== === ===== === ===== ==== ======
Leasehold improvements 17,625 - 4,876 - (2,248) (725) 19,528
Building 4,690 - 3,111 - (1) (29) 7,771
Furniture and fixtures 14,008 - 5,131 - (2,020) (596) 16,523
Office equipment 28,129 - 5,130 - (1,567) (2,006) 29,686
Computers 48,740 - 12,679 - (8,702) (1,810) 50,907
Vehicles 26,531 - 12,301 - (5,657) (1,066) 32,109
---------- ----- --------- ----- --------- ------- ----------
At 31 December 2008 139,723 - 43,228 - (20,195) (6,232) 156,524
Carrying amounts
====== === ===== === ===== ==== ======
At 31 December 2008 192,986 - - - - - 240,367
====== === === === === === ======
At 31 December 2007 128,143 - - - - - 192,986
====== === === === === === ======
Capital work in progress includes a warehouse under construction by a Group entity in Dubai.
Property, plant and equipment includes:
i) Vehicles with a net book value of AED 8.81 million (2007: AED 13.66 million) that have been obtained under finance leases.
ii) Land and buildings amounting AED 28.93 million (2007: AED 23.8 million) have been pledged against bank facilities.
Also refer notes 24 and 26.

Notes (Continued)
14- Goodwill
2008 2007
AED’000 AED’000
Opening balance 803,399 803,731
Acquisitions through business combination
- On acquisition of GDA Singapore business (refer note 5) - 1,533
Acquisition of minority interest
- On additional acquisition in Aramex Lanka (refer note 5) - 5,625
- On additional acquisition in Two Way Holland (refer note 5) 2,044 -
Adjustment on reversal of contingent consideration
of Two Way (refer below) - (7,530)
Adjustment to Freight Professionals - 11
Adjustment to Docman - 29
---------- ----------
Closing balance 805,443 803,399
====== ======
Annual
Report 2008
The cost of acquisition of Two Way Freight and Logistics Group (“Two Way”) in 2006 included an estimated contingent consideration of AED
10.35 million, the payment of which was dependent on the achievement of agreed future earnings of the subsidiary. As at 31 December
2007, management did not consider the achievement of these agreed earnings probable and accordingly the cost of acquisition was reduced
by reversing balance of the contingent consideration. Refer note 36.
Annual impairment testing for goodwill has been carried out by management at 31 December 2008. The impairment test is based on the
“value in use” calculation. These calculations have used cash flow projections based on actual operating results and future expected
performance. Cash flow projections beyond five years have been extrapolated using a 4% growth rate. This growth rate is considered
appropriate considering the nature of the industry and the general growth in economic activity being witnessed in the location/region
where these entities operate. A discount rate of 11% has been used in discounting the cash flows projected. Also refer note 36.
15- Other intangible assets
Other intangible assets represents list of customers bound by contracts and web site costs. The Group is amortizing these intangible
assets over a period between three to ten years. The amortization is recognized in the general and administration expenses in the income
statement.
The movement during the year is as under:
2008 2007
AED’000 AED’000
Opening balance 3,493 3,613
Payment for website acquired - 742
Amortization during the year (717) (862)
------- -------
Closing balance 2,776 3,493
==== ====
23

Annual
Report 2008
24
Notes (Continued)
16- Available for sale investments
2008 2007
AED’000 AED’000
Opening balance 17,040 2,720
Sale during the year (665) -
Cumulative changes in fair value during the year (13,074) 14,320
-------- --------
Closing balance 3,301 17,040
===== =====
During the year, the Group has disposed off its investment in an entity listed in the Amman (Jordon) stock exchange for an amount of AED
0.51 million. The original cost of the said investment was AED Nil and the carrying value at the previous balance sheet date was AED 0.67
million. The reported gain of AED 0.51 million has been recognized in the income statement.
The balance amount of AED 3.3 million as at 31 December 2008 (31 December 2007: AED 16.37million) represents shares in a company listed
in the Dubai Financial Market.
Sensitivity analysis – equity price risk
For such investments classified as available-for-sale, a five percent increase in the price of its equity holding at the reporting date would
have increased equity by AED 0.17 million (2007:AED 0.85 million); an equal change in the opposite direction would have decreased equity
by AED 0.17 million (2007:AED 0.85 million).
17- Other non-current assets
Other non-current assets include an amount of AED 3.02 million representing advance paid for purchase of land by a Group entity. Other non
current assets also includes an amount of AED 0.82 million representing the Group’s investment in an entity currently under formation in Egypt.
The corresponding amount in other non-current assets for the previous year included an amount of AED 0.95 million representing share
capital of a subsidiary under incorporation in Malta.
18- Cash and cash equivalents
Cash and cash equivalents comprise of the following:
2008 2007
AED’000 AED’000
Cash in hand and at banks 343,827 238,856
Less: margin deposits (6,799) (6,063)
Less: overdrafts (14,300) (20,191)
---------- ----------
322,728 212,602
====== ======
Cash at banks include an amount of AED 5.75 million (2007: AED 0.61 million) and AED 194.75 million (2007: AED 161.63 million) held with
local and foreign banks, respectively, based in the UAE and amount of AED 138.01 million (2007: AED 68.90 million) with foreign banks based
outside of UAE.

Notes (Continued)
19- Trade receivables
2008 2007
AED’000 AED’000
Trade receivables 371,862 339,110
Less: allowance for impairment losses (25,592) (19,958)
Geographic concentration of trade receivables as of 31 December is as follows:
---------- ----------
346,270 319,152
====== ======
2008 2007
% %
Middle East and North Africa 77 71
Europe 16 21
North America 1 2
Asia 6 6
Management believes that all trade receivables, net of impairment loss allowance, are collectable.
Movement in allowance for impairment losses during the year is as follows:
== ==
2008 2007
AED’000 AED’000
Opening balance 19,958 21,439
Provision made during the year 10,202 6,867
Write back during the year (221) (116)
Write-offs (4,347) (8,232)
-------- --------
Closing balance 25,592 19,958
===== =====
The Group’s exposure to credit and currency risk related to trade receivables is further disclosed in note 35.
20- Other current assets
2008 2007
AED’000 AED’000
Prepaid expenses 23,345 26,414
Advances and other receivables* 74,664 69,571
-------- --------
98,009 95,985
===== =====
Annual
Report 2008
* Advances and other receivables includes an amount of AED 30 million (2007: AED 30 million) due from a Company owned by a trust formed for the
purposes of implementing an employee share purchase plan. Certain key management employees of the Group have influence over the trust. This
amount carries interest at agreed upon rates and is repayable on demand. The interest for 2008 has been waived. Also refer note 11.
25

Annual
Report 2008
26
Notes (Continued)
21- Share capital
2008 2007
AED’000 AED’000
Authorised, issued and paid up
1,210,000,000 shares of AED 1 each
(31 December 2007: 1,100,000,000 shares of AED 1 each) 1,210,000 1,100,000
======= =======
During the year, the Company’s share capital was increased by the issue of bonus shares to the extent of 10% of the share capital of the
Company as approved by the shareholders in the Company’s Annual General Meeting.
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at
meetings of the Company. All shares rank equally with regard to the Company’s residual assets.
22- Reserves
22 (a) Statutory reserve
In accordance with the Articles of Association of the entities in the Group and Article 255 of the UAE Federal Commercial Companies Law,
a minimum of 10% of the net profit for the year of the individual entities to which the law is applicable has been transferred to a statutory
reserve. Such transfers may be ceased when the statutory reserve equals half of the paid up share capital of applicable entities. This
reserve is non distributable except in certain circumstances. The consolidated statutory reserve reflects transfers made post-acquisition
for subsidiary companies together with transfers made by the parent company. It does not however reflect the additional transfers to the
consolidated statutory reserves which would be made if the retained post-acquisition profits of the subsidiaries were distributed to the
parent company.
22 (b) Fair value reserve
The fair value reserve comprises the cumulative net change in the fair value of available for sale investments until the investments are
derecognised or impaired.
22 (c) Translation reserve
The translation reserve comprises all foreign currency differences arising from the translation of financial statements of foreign
operations.
23 Retained earnings
23 (a) Proposed bonus share issue
The Directors have proposed an issue of bonus shares of AED 121 million, being 10% of the share capital of the Company. This proposed
bonus share issue is subject to approval of the shareholders at the Annual General Meeting. The amount of the proposed bonus issue has not
been provided for and is included in the retained earnings.
23 (b) Proposed directors’ fees
Directors’ fees of AED 1.4 million (2007: AED 1.6 million) representing remuneration for attending meetings and compensation for professional
services rendered by the Directors for the year 2008 have been proposed. Out of the amount proposed in 2007, an amount of AED 1.4 million
(2007: AED 0.8 million) was paid during the year ended 31 December 2008. Also refer note 29.

Notes (Continued)
24- Loans and borrowings
2008 2007
AED’000 AED’000
Term loan (a) 15,719 14,700
Notes payable (b) 160 273
Finance lease obligations (c) 11,586 12,790
-------- ---------
27,465 27,763
Less: current maturity (11,698) (13,056)
(a) Term loan
This represents the balances outstanding relating to the following Group entities:
--------- ---------
15,767 14,707
===== =====
Annual
Report 2008
1. A term loan in Jordanian Dinar (JD) taken by Arab American Express Company Ltd (Amman Station) (a subsidiary of the Group) on 5 October 2005
for an amount AED 10.3 million (JD 2 million) at an annual interest rate ranging from 7% to 9.75%. Of the total facility, an amount of AED 1.10
million (JD 0.21 million) is outstanding as at 31 December 2008 (2007: AED 3.15 million (JD 0.61 million)). This loan is repayable over 60 monthly
installments of AED 0.17 million each commencing from October 2005. This loan has been obtained by the Company for the construction of
premises in Amman. This loan is secured by the pledge of land and the premises which would be constructed on the land. Also refer note 13.
2. Term loan in USD taken by Aramex International Courier Palestine (a subsidiary of the Group) on 1 March 2007 for an amount of AED 0.734
million (USD 0.2 million) at an annual interest rate of LIBOR plus a pre-agreed mark-up. During the year, a further draw down of AED 0.83
million (USD 0.22 million) has been made against this loan facility. The original loan is repayable over equal monthly installments of AED
0.03 million each commencing from March 2007 whereas the additional loan is also repayable on a similar basis commencing August 2008.
As at 31 December 2008 an amount of AED 0.65 million (2007: AED 0.5 million) is outstanding in respect of this loan. This loan is secured
against a corporate guarantee given by the Holding Company.
3. An amount of AED 1.8 million relating to a Euro denominated loan taken by Two Way. The rate of interest on the loan is 6.52% (2007:
5.17%). The loan would be fully repaid by 2010. Of the total loan, an amount of AED 1.15 million is outstanding as at 31 December 2008
(2007: AED 1.80 million). This loan is secured against a corporate guarantee given by the Holding Company.
4. A term loan taken by Aramex Emirates LLC (a subsidiary of the Group) in November 2007. The total loan facility is AED 16 million out of
which an amount of AED 12.81 million has been drawn as of 31 December 2008 ( 2007: AED 8.6 million). The loan carries an annual interest
rate of DIBOR plus a pre-agreed mark-up. This loan is repayable over 33 monthly installments of AED 0.267 million each commencing from
January 2008. This loan has been obtained by the Company for the construction of a warehouse in Dubai. This loan is secured by the pledge
of land and the premises which would be constructed on the land. Also refer note 13.
(b) Notes payable
This represents various notes payable for the purpose of financing the purchase of vehicles and equipment, with original average maturities
of three years. These notes are repayable in equal monthly installments and carry interest rates ranging from 6% to 25%.
The aggregate amounts of annual principal maturities of notes payable are as follows:
2008 2007
AED’000 AED’000
Total notes payables 160 273
Less: current maturity (88) (171)
---- -----
72 102
== ===
27

Annual
Report 2008
28
Notes (Continued)
24- Loans and borrowings (Continued)
(c) Finance lease obligation
Future minimum annual payments under all non-cancellable finance leases are as follows:
Future minimum lease
payments
Interest
Present value of
minimum lease
payments
AED’000 AED’000 AED’000
Less than one year 6,958 764 6,194
Between one and five years 5,873 481 5,392
-------- -------- --------
31 December 2008 12,831 1,245 11,586
-------- -------- --------
Less than one year 7,180 880 6,300
Between one and five years 7,085 595 6,490
-------- -------- --------
31 December 2007 14,265 1,475 12,790
-------- -------- --------
Finance lease obligations are denominated in Saudi Riyals (SR), Euro, GBP and Egyptian Pound (EGP) and have maturities between 2009 and
2013. Interest rate on finance lease obligations range from 8% to 16%.
25- Employees’ end of service benefits
2008 2007
AED’000 AED’000
Opening balance 39,428 30,849
Provision made during the year 15,747 13,289
Payments made during the year (2,970) (5,113)
Exchange differences (195) 403
-------- --------
Closing balance 52,010 39,428
26- Bank overdrafts
===== =====
The Group maintains overdrafts and lines of credit with various banks. AIL has provided a corporate guarantee of AED 1.8 million to Audi
Bank in Lebanon to secure the bank facilities given for Aramex subsidiary in Lebanon, none of which was utilized by Aramex Lebanon as of
31 December 2008 (2007: AED nil).
Two Way has outstanding bank overdrafts and line of credits of AED 14.08 million as at 31 December 2008 (2007: AED 20 million), which are
secured by a floating charge over the assets of the Two Way Group together with inter-company guarantees within the Group. Two Way Group
also has an invoice discounting facility which is secured by a charge over the books debts of Two Way. Also refer note 24 and 32.
27- Trade payables
Trade payables mainly include payables to third party suppliers against invoices received from them for line haul, freight services, handling
and delivery charges.

Notes (Continued)
28- Other current liabilities
2008 2007
AED’000 AED’000
Accrued expenses 161,721 109,977
Deferred revenue 7,991 7,120
Sales and other taxes 5,361 6,518
Income taxes payable 12,580 9,160
Customers’ deposits 1,314 56
Social security taxes payable 3,532 6,581
Others 8,766 4,788
29- Related party transactions
---------- ---------
201,265 144,200
====== ======
Annual
Report 2008
Since 1996, AIL has leased the premises currently occupied by the AIL’s corporate office in Amman, Jordan, from ARAM, an investment
company controlled by the CEO’s family at an annual rental of AED 1.58 million (2007: AED 0.7 million). The lease is open-ended and is
renewed annually. Management believes that the terms of the lease are at least as favourable to the Company as those available from
unaffiliated third parties.
AIL entered into an alliance called Global Distribution Alliance (“GDA”) in December 2003. GDA is a global alliance among thirty two leading
independent express companies that function as a worldwide delivery network for its members in which AIL is one of the founding members.
AIL and GDA maintain normal business relations. At 31 December 2008, AED 1.04 million (2007: AED 0.47 million) was due from AIL to GDA
and has been included under other current liabilities.
Aramex Beirut premises are rented from the station manager and her relatives for an amount equivalent to AED 0.22 million for the year 2008
(2007: AED 0.13 million). Management believes that the terms of the rental are at least as favourable to the Group as those available from
unaffiliated third parties.
One of the Group entities leases its premises from one of its directors at an annual rental of AED 5.12 million (2007: AED 3.4 million).
During the ordinary course of its operations, the Group carries out transactions, which are within the principal activities of the Group,
with other entities that fall within the definition of a related party as per International Accounting Standard (“IAS”) 24. The terms of these
transactions are not significantly different from those with other third parties. On account of the small value and the high volume of such
individual transactions, the Group does not have a process in place to separately record and disclose such transactions. Management
believes that such non disclosure does not affect the assessment of the Group’s operations by the users of the financial statements.
Details of other significant related party transactions are as follows:
2008 2007
AED’000 AED’000
Compensation paid/payable
to key management personnel for the year
-Short term benefits* 17,292 14,545
-End of service benefits 152 181
===== =====
* Includes proposed directors’ fees of AED 1.4 million (2007: AED 1.4 million). Refer note 23(b).
29

Annual
Report 2008
30
Notes (Continued)
30- Earning per share
Basic earnings per share
The calculation of basic earnings per share at 31 December 2008 is based on the profit attributable to the shareholders of the Company of AED
147.32 million (2007: AED 121.55 million) and a weighted average number of ordinary shares outstanding of 1,210 million (2007: 1,210 million).
For calculating the earning per share in 2007, the weighted average number of shares has been adjusted as if the bonus issue had occurred
at the beginning of 2007. Refer note 21.
31- Operating leases
As lessee
The Group leases land, office space, warehouses and transportation equipment under various operating leases, some of which are renewable
annually. Rent expense related to these leases amounted to AED 64.40 million for the year ended 31 December 2008 (2007: AED 46.7 million).
The Group believes that most operating leases will be renewed at comparable rates to the expiring leases.
The approximate minimum annual rental commitments of the Group under the existing lease agreements are as follows:
2008 2007
AED’000 AED’000
Less than one year 61,622 57,964
Between one and five years 194,855 205,513
More than five years 81,889 86,714
32- Contingent liabilities and commitments
Contingent liabilities
====== ======
2008 2007
AED’000 AED’000
Letters of guarantee 39,353 36,651
===== =====
Capital commitments
As at 31 December 2008 the Group has capital commitments of AED 97.03 million (2007: AED 11.4 million) towards purchase/construction
of property, plant and equipment. Also refer note 13.
33- Information about segments
Segment information is presented in respect of the Group’s business and geographical segments. The primary format, business segments,
is based on the way senior management organizes operations within the Group for decision making purposes, internal reporting structure
and performance assessment.
Business segments:
The Group operates predominantly in a single industry as a courier and cargo freight forwarder and comprises of the following main business segments:
International express: includes delivery of small packages across the globe to both retail and wholesale customers.
Freight forwarding: includes forwarding of loose or consolidated freight through air, land and ocean transport, warehousing, customs
clearance and break bulk services.
Domestic express: includes express delivery of small parcels and pick up and deliver shipments from city to city within the country.

Notes (Continued)
33- Information about segments (Continued)
Annual
Report 2008
Logistics: includes warehousing and its management, distribution, supply chain management, inventory management as well as other value
added services.
Other operations: includes catalogue shipping services, document storage, shop n ship commercial services, airline ticketing and travel, and
visa services. All related costs are reflected in cost of services.
International
express
Freight
forwarding
Domestic
express
31
(in AED’000)
Logistics Others Elimination Consolidated
Year ended
31 December 2008
External sales 610,343 912,599 295,665 132,654 128,693 - 2,079,954
Inter-segment sales 294,361 158,828 105 8,874 6,775 (468,943) -
Segment sales 904,704 1,071,427 295,770 141,528 135,468 (468,943) 2,079,954
Gross profit 358,596 260,081 228,138 105,354 85,814 - 1,037,983
International
express
Freight
forwarding
Domestic
express
Logistics
Others Elimination Consolidated
Year ended
31 December 2007
External sales 519,085 823,993 224,988 106,766 108,956 - 1,783,788
Inter-segment sales 234,410 130,987 219 5,238 8,334 (379,188) -
Segment sales 753,495 954,980 225,207 112,004 117,290 (379,188) 1,783,788
Gross profit 299,172 227,767 173,618 76,262 58,837 - 835,656
Transactions between stations are priced at agreed upon rates. All material intra group transactions have been eliminated on consolidation.
The Group does not segregate assets and liabilities by business segment and accordingly such information is not available.
Geographical segments
The business segments are managed on a worldwide basis, but operate in four principal geographical areas, Middle East and North Africa,
Europe, North America and Asia.
In presenting information on the geographical segments, segment revenue is based on the geographical location of customers. Segments
assets are based on the location of the assets.
2008 2007
AED’000 AED’000
Revenues
Middle East and North Africa 1,476,205 1,192,523
Europe 427,174 445,210
North America 41,251 31,300
Asia 135,324 114,755
------------ ------------
2,079,954 1,783,788
======= =======

Annual
Report 2008
32
Notes (Continued)
33- Information about segments (Continued)
2008 2007
AED’000 AED’000
Assets
Middle East and North Africa 1,700,558 1,520,781
Europe 87,594 104,926
North America 11,822 10,058
Asia 45,332 39,070
------------ ------------
1,845,307 1,674,835
Long lived assets *
======= =======
Middle East and North Africa 217,267 165,367
Europe 15,842 20,612
North America 1,462 1,790
Asia 5,796 5,217
---------- ---------
240,367 192,986
======= =======
* Long lived assets includes property, plant and equipment but excludes intangible assets.
2008 2007
AED’000 AED’000
Liabilities
Middle East and North Africa 296,069 233,077
Europe 82,115 103,968
North America 10,093 8,051
Asia 20,534 19,118
---------- ----------
408,811 364,214
======= =======
34- Group entities
Significant subsidiaries of the Group include:
Aramex International Limited, Bermuda
Aramex Amman, Jordan
Arab American International Express Company, Lebanon
Jordan Distribution Agency, Amman
Aramex India Private Limited, India
Aramex International Egypt for Air and local services (S.A.E), Egypt
Aramex, Kuwait
Aramex Emirates LLC, Dubai
Aramex, Abu Dhabi
Freight Professionals, Egypt
Two Way Forwarding & Logistics (Ireland) Limited
Two Way International Freight Services (UK) Limited
Two Way Holland BV
Certain subsidiaries of the Group are controlled through shareholder agreements and accordingly consolidated in these financial statements.

Notes (Continued)
35- Financial instruments
Credit risk
Annual
Report 2008
Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting
date was:
Carrying amount
2008 2007
AED’000 AED’000
Cash in hand and at bank (refer note 18) 343,827 238,856
Trade receivables (refer note 19) 346,270 319,152
Other receivables 52,294 47,755
---------- ----------
742,391 605,763
====== ======
As the Group has operations in a number of geographical segments across various lines of business, its customer base consists of a large
number of customers. Management therefore believes that the risk of credit concentration from a particular customer or a few customers is
limited. Maximum exposure to credit risk for trade receivables at the reporting date by geographic segments has been mentioned in note 19.
The maximum exposure to credit risk for trade receivable at the reporting date by type of customers was:
2008 2007
AED’000 AED’000
Agents and wholesellers 13,054 18,240
Retail/end customers 333,216 300,912
Impairment losses
The ageing of trade receivables at the reporting date was:
Gross
2008
Allowance for
impairment
2008
---------- ----------
346,270 319,152
====== ======
Allowance for
Gross
2007
impairment
2007
AED’000 AED’000 AED’000 AED’000
Not past due 0-60 days 262,128 - 229,097 -
Past due 61-90 days 48,867 - 63,006 -
Past due 91-180 days 37,676 9,229 27,067 3,736
Past due 181-365 days 11,382 4,554 7,912 4,194
More than one year 11,809 11,809 12,028 12,028
---------- -------- ---------- --------
371,862 25,592 339,110 19,958
====== ===== ====== =====
Details of movement in the allowance for impairment in respect of trade receivables during the year has been mentioned in note 19.
Based on historic default rates, the Group believes that no impairment allowance is necessary in respect of trade receivables not past due
or past due by up to 90 days.
33

Annual
Report 2008
34
Notes (Continued)
35- Financial instruments (Continued)
Credit risk (Continued)
Impairment losses (Continued)
The allowance account in respect of trade receivables is used to record impairment losses unless the Group is satisfied that no recovery of
the amount owing is possible; at that point the amounts is considered irrecoverable and is written off. The management believes that the
existing impairment loss provision is adequate and considers the balance amount as fully recoverable.
Liquidity risk
The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of
netting agreements:
31 December 2008
In AED’000
Non-derivative
financial liabilities
Carrying
amount
Total
-----------------------Contractual cash flows-----------------------
6 mths
or less
6-12 mths 1-2 years 2-5 years
More than
Term loans 15,719 17,681 3,684 2,636 4,489 6,872 -
Notes payables 160 220 112 66 38 4 -
Finance lease
obligations
11,586 12,831 3,909 3,049 4,196 1,677 -
Bank overdrafts 14,300 14,300 14,300 - - - -
Trade and other
payables
293,869 293,869 293,869 - - - -
---------- ---------- ---------- ------- -------- ------- ----
335,634 338,901 315,874 5,751 8,723 8,553 -
====== ====== ====== ==== ===== ==== ==
31 December 2007
In AED’000
Non-derivative
financial liabilities
Carrying
amount
-----------------------Contractual cash flows-----------------------
Total
6 mths
or less
6-12 mths 1-2 years 2-5 years
5 years
More than
5 years
Term loans 14,700 15,818 3,725 3,608 5,678 2,807 -
Notes payables 273 316 103 103 55 55 -
Finance lease
obligations
12,790 14,265 3,802 3,379 4,704 2,380 -
Bank overdrafts 20,191 20,191 20,191 - - - -
Trade and other
payables
260,014 260,014 260,014 - - - -
---------- ---------- ---------- ------- -------- ------- ----
307,968 310,604 287,835 7,090 10,437 5,242 -
====== ====== ====== ==== ===== ==== ==

Notes (Continued)
35- Financial instruments (Continued)
Currency risk
Exposure to currency risk
The Group’s exposure to foreign currency (in AED equivalent) against the below currencies was as follows:
31 December 2008
31 December 2008 31 December 2007
In AED’000 Euro USD GBP Euro USD GBP
Trade receivables 3,105 15,262 470 7,492 13,958 648
Secured bank loans - (654) - - (459) -
Annual
Report 2008
Trade and other payables (7,114) (7,332) (655) (5,713) (7,792) (1,361)
-------- -------- ------ -------- -------- --------
Gross balance sheet exposure (4,009) 7,276 (185) 1,779 5,707 (713)
Intra group balances - (16,737) - - (24,545) -
Forward exchange contracts - - - 1,487 - -
-------- ---------- ------ -------- --------- --------
Net exposure (4,009) (9,461) (185) 3,266 (18,838) (713)
===== ====== ==== ===== ===== =====
The following are exchange rates applied during the year in respect of currencies where the Group has significant exposures to currency risk:
Reporting date Reporting date
Spot rate Average rate
2008 2007 2008 2007
1USD to Euro 0.710 0.679 0.683 0.731
1USD to GBP 0.691 0.501 0.545 0.500
1USD to INR 48.95 39.435 43.81 41.357
1USD to EGP 5.602 5.554 5.495 5.720
Sensitivity analysis
A 10 percent strengthening of the USD against the following currencies at 31 December 2008 would have increased (decreased) equity and
profit or loss by the AED equivalent amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain
constant. The analysis is performed on the same basis for 2007.
Effect in AED’000 Equity Profit or loss
31 December 2008
Euro 553 553
GBP (186) (186)
INR 440 440
EGP
31 December 2007
292 292
Euro 23 23
GBP 354 354
INR 820 820
EGP (37) (37)
A 10 percent weakening of the USD against the above currencies at 31 December would have had the equal but opposite effect on the above
currencies to the amounts shown above, on the basis that all other variables remain constant.
35

Annual
Report 2008
36
Notes (Continued)
35- Financial instruments (Continued)
Interest rate risk
Profile
At the reporting date the interest rate profile of the Group’s interest-bearing financial instruments was:
Carrying amount
Fixed rate instruments
2008 2007
AED’000 AED’000
Financial assets 252,887 190,901
Financial liabilities (11,260) (12,404)
Variable rate instruments
---------- ----------
241,627 178,497
====== ======
Financial liabilities 30,505 35,550
===== =====
Fair value sensitivity analysis for fixed rate instruments
The Group does not account for any fixed rate financial assets and liabilities at fair value through profit or loss.
Cash flow sensitivity analysis for variable rate instruments
A change of 100 basis points in interest rates at the reporting date would have increased /(decreased) equity and profit or loss by the
amounts shown below. This analysis assumes that all other variables, in particular foreign currency rates, remain constant. The analysis is
performed on the same basis for 2007.
31 December 2008
Profit or loss Equity
100bp 100bp 100bp 100bp
increase decrease increase decrease
AED’000 AED’000 AED’000 AED’000
Variable rate instruments (362) 362 (362) 362
31 December 2007
==== === ==== ===
Variable rate instruments (335) 335 (335) 335
==== ==== ==== ===

Notes (Continued)
35- Financial instruments (Continued)
Fair values
Fair values versus carrying amounts
The fair values of financial assets and liabilities, together with the carrying amounts shown in the balance sheet, are as follows:
31 December 2008 31 December 2007
Carrying Fair Carrying Fair
In AED’000 amount value amount value
Available for sale financial assets 3,301 3,301 17,040 17,040
Cash in hand and at bank 343,827 343,827 238,856 238,856
Trade receivables 346,270 346,270 319,152 319,152
Other receivables 52,294 52,294 47,755 47,755
Loans and borrowings (15,879) (15,879) (14,973) (14,973)
Finance lease liabilities (11,586) (11,586) (12,790) (12,691)
Trade payables (113,175) (113,175) (132,093) (132,093)
Other payables (180,693) (180,693) (127,921) (127,921)
Bank overdraft (14,300) (14,300) (20,191) (20,191)
---------- ---------- ---------- ----------
410,059 410,059 314,835 314,934
====== ====== ====== ======
The basis for determining fair values of financial assets and financial liabilities is as under:
Annual
Report 2008
Trade and other receivables
The fair value of trade and other receivables is estimated as the present value of future cash flows, discounted at the market rate of interest
at the reporting date.
Derivatives
The fair value of forward exchange contracts is estimated by discounting the difference between the contractual forward price and the
current forward price for the residual maturity of the contract using a risk-free interest rate.
Non derivative financial liabilities
Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal and interest cash flows,
discounted at the market rate of interest at the reporting date. For finance leases the market rate of interest is determined by reference to
similar lease agreements.
Investment in equity securities
The fair value of available for sale financial assets is determined by reference to their quoted bid price at the reporting date.
Qualitative disclosures in respect of financial instruments have been mentioned in note 4.
37

Annual
Report 2008
38
Notes (Continued)
36- Accounting estimates and judgments
The Group makes estimates and assumptions that affect the reported amounts of assets and liabilities, income and expenses. Estimates
and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events
that are believed to be reasonable under the circumstances. Significant areas of estimation uncertainty and critical judgments in applying
accounting policies that have the most significant effect on the amount recognized in the consolidated financial statements are as under:
Goodwill impairment
The impairment test is based on the “value in use” calculation. These calculations have used cash flow projections based on actual operating
results and future expected performance. Cash flow projections beyond five years have been extrapolated using a 4% growth rate. This growth
rate is considered appropriate considering the nature of the industry and the general growth in economic activity being witnessed in the location/
region where these entities operate. A discount rate of 11% has been used in discounting the cash flows projected. Also refer note 14.
Allowance for impairment losses
Allowance for impairment losses is calculated on the basis of a Group provisioning policy which requires for allowance to be created for overdue
outstanding balances. Allowance is also made for receivable balances, which based on the information available with management, are
considered to be uncollectible. The above policy is based on historical experience and is believed to be reasonable under the circumstances.
Provision for tax
The Group reviews the provision for tax on a regular basis. In determining the provision for tax, laws of particular jurisdictions (where
applicable entity is registered) are taken into account. The management considers the provision for tax to be a reasonable estimate of
potential tax liability after considering the applicable laws and past experience.
Contingent consideration payable for the acquisition of a subsidiary
The contingent consideration payable is based on the estimated future earnings of the acquired subsidiary. Management reviews these
estimated future earnings on a regular basis, based on currently available information, until the actual settlement of the consideration. The
management does not consider the estimated future earnings to be reasonable and probable, after considering the past performance of the
subsidiary and forecasted business growth.
Identifiable assets and liabilities taken over on acquisition of subsidiaries
The Group separately recognizes assets and liabilities on the acquisition of a subsidiary when it is probable that the associated economic
benefits will flow to the acquirer or when, in the case of liability, it is probable that an outflow of economic resources will be required to
settle the obligation and the fair value of the asset or liability can be measured reliably. Intangible assets and contingent liabilities are
separately recognized when they meet the criteria for recognition set out in IFRS 3. Intangible assets, acquired on acquisition, mainly
represents lists of customers, bound by a contract, valued on the basis of minimum cash flows.
37- Subsequent events
Subsequent to the year end, the Group has acquired a 100% shareholding in Metrofile Middle East LLC, a limited liability company registered
in Dubai, UAE. Metrofile Middle East LLC is involved in the business of storage, archive, maintenance and management of files and records
of other business entities.