NEW YORK: Amazon is not content just being the “everything store.” Increasingly, it looks like it wants to be its own deliveryman, too.
Its Monday announcement of a new air cargo hub in Kentucky is merely Amazon’s latest foray into building out its own shipping and logistics unit. If successful, the move could ultimately mean lower costs for Amazon — and possibly faster delivery and low prices for consumers. But it could also pit Amazon against package deliverers like FedEx and UPS.
Amazon has long plowed its profits back into its business investments. In order to speed up its delivery, it has invested in opening new distribution centers and leasing fleets of trucks. In May, Amazon leased 40 Boeing jets from Atlas Air Worldwide Holdings and Air Transport Services Group Inc., a fleet it dubbed “Prime Air.”
The moves comes e-commerce continues to outpace retail sales. Amazon said Thursday the number of items it sold in the fourth quarter rose 24 percent compared with a year ago. Its revenue rose 22 percent to $43.74 billion, slightly missing analyst expectations.
Meanwhile, profit rose 36 percent to $749 million, or $1.54 per share, ahead of expectations.
Next step
On Monday, Amazon took the next step, announcing plans to build a worldwide air cargo hub at a northern Kentucky airport about 13 miles southwest of Cincinnati. The nearly $1.5 billion investment is expected to create 2,700 jobs.
It is an auspicious location, since UPS has a big air hub in Louisville and DHL has an international shipping hub at Cincinnati/Northern Kentucky International Airport. Amazon has long batted down rumors that it plans to start its own package delivery service, saying it is just trying to speed up deliveries and lower costs. The company insists it will continue working with the US Post Office, UPS, FedEx and other carriers to deliver packages.
“It is not a big surprise,” Cathy Roberson, founder of consulting firm Logistics Trends & Insights, said of Amazon’s Kentucky announcement. “By utilizing that location they can reach anywhere in the US in two days.”
E-commerce explosion
If Amazon succeeds in building out its delivery infrastructure, it could ultimately reduce package volume for companies like FedEx and UPS, Roberson said. On the other hand, ecommerce volume is growing so fast there may be room for everyone, she said.
For example, UPS reported Monday that 55 percent of its fourth-quarter deliveries — and 63 percent of those in December — were directly to consumers, setting records in both cases.
The rub
It is no sure bet that Amazon will succeed in the highly competitive and complex delivery space.
“It is hard to scale up, to have a network as built out and mature as FedEx, UPS or DHL,” Roberson said. “Amazon is still not mature.” To really go up against that big three, she said, Amazon would have to invest “an awful lot of money in networks and more facilities” — at least double what it is already spending, she estimates.
Still, Amazon has a history of developing services for its own use and then offering them to other customers. It built Amazon Web Services, its cloud computing business, for its own purposes; that service now generates annual revenue of more than $12 billion.
“You could see a scenario in the future where they perfected their delivery network and become a carrier for other retailers,” said Rob Convey, CEO of Convey, a company specializing in improving retailer shipment delivery.
Amazon wants to be its own deliveryman
Amazon wants to be its own deliveryman
Saudi banking sector outlook stable on higher non-oil growth: Moody’s
RIYADH: Saudi Arabia’s banking sector outlook remains stable as stronger non-oil economic growth and solid capital buffers support lending and profitability, Moody’s Ratings said, forecasting continued expansion despite liquidity constraints.
In its latest report, credit rating agency Moody’s said the Kingdom’s non-oil gross domestic product is projected to expand by 4.2 percent this year, up from 3.7 percent recorded in 2025.
In January, S&P Global echoed a similar view, saying banks operating in Saudi Arabia are expected to sustain strong lending growth in 2026, driven by financing demand tied to Vision 2030 projects.
Fitch Ratings also underscored the healthy state of Saudi Arabia’s banking system last month, stating that credit growth and high net interest margins are supporting bank profitability in the Kingdom.
Commenting on the latest report, Ashraf Madani, vice president and senior credit officer at Moody’s Ratings, said: “We expect credit demand to remain robust, but tight liquidity conditions will continue to limit the sector’s lending capacity.”
Madani added that operating conditions in Saudi Arabia will continue to support banks’ strong asset quality and profitability.
“The operating environment for banks remains buoyant, underpinned by a forecast increase in non-oil GDP growth, robust solvency and continued progress toward the government’s economic diversification goals,” he added.
Moody’s said authorities in the Kingdom are introducing business-friendly reforms to bolster investment and private sector activity, while implementing key development projects and preparing for major global events.
Saudi Arabia continues to advance reforms including full foreign ownership rights, simplified capital market registration procedures and improved investor protections, which could accelerate credit growth to 8 percent this year.
Problem loans are expected to remain near historical lows at around 1.3 percent of total loans, supported by ongoing credit growth, favorable operating conditions and lower interest rates, which collectively strengthen borrowers’ repayment capacity.
Retail credit risk remains controlled in Saudi Arabia because most borrowers are government employees with stable income streams.
“Concentration of single borrowers and specific sectors remains high although the growing proportion of consumer loans — now nearing 50 percent of overall sector lending — continues to reduce aggregate concentration risk,” added Moody’s.
The report said profitability is expected to remain solid among Saudi banks, supported by sustained loan growth and fee income.
Margins are expected to remain stable despite lower asset yields as banks take advantage of credit demand to widen loan spreads on existing and new lending.
Moody’s expects net income to tangible assets to remain stable at 1.8 percent to 1.9 percent this year.
The report added that Saudi banks benefit from a very high likelihood of government support in the event of any failures.
“We assume a very high likelihood of government support in the event of a bank failure. This is based on the government’s track record of timely intervention,” Moody’s said.
It added that Saudi Arabia remains the only G-20 country that has not adopted a banking resolution framework. However, it is the only Gulf Cooperation Council member to have introduced a law for systemically important financial institutions.
