Saudi Arabia Boosting Private Sector Role in Logistics and Transport
In a move to strengthen the logistics and transport sector, Saudi Arabia is ramping up the involvement of private entities through various initiatives, including a new investment law, as announced by Saudi Investment Minister Khalid Al-Falih.
Empowering Private Operators in Airport Management
Speaking at the Global Logistics Forum in Riyadh, Al-Falih revealed plans for the government to appoint private operators to manage four airports in the Kingdom in the near future.
Strategic Regional Hub Development
Saudi Arabia aims to position itself as a strategic regional hub and logistics gateway across three continents, emphasizing the importance of enhancing seaport and airport operations. The National Logistics Strategy targets increasing the sector’s contribution to the Kingdom’s GDP from 6 percent to 10 percent by 2030.
Privatization Drive and Investment Law
Al-Falih highlighted the government’s shift towards empowering the private sector, citing examples such as the privately-operated Madinah airport and King Abdullah Port. The newly approved investment law is attracting significant investments in logistics and transport by offering stronger protections for investors.
Regional Supply Chain Development
Al-Falih stressed the significance of establishing a regionalized supply chain within the Gulf Cooperation Council, leveraging strategic geographical positions like that of Saudi Arabia to capitalize on opportunities in the transport and logistics sector.
Sustainability Agenda
Addressing sustainability concerns, Al-Falih emphasized the Kingdom’s focus on developing green energy sources like green hydrogen and ammonia to reduce emissions in the sector, aligning with global commitments to net zero emissions.
Technological Advancements in Transport and Logistics
Al-Falih and other ministers highlighted the vital role of technology in modernizing the transport and logistics sector, emphasizing the importance of digitalization, data processing, AI, and technologies like blockchain to enhance operations and meet future demands.
Future Outlook and Vision 2030
Saudi Arabia’s Transport Minister Saleh Al-Jasser expressed optimism about the Kingdom’s progress towards becoming a global logistics hub, despite regional challenges. The pursuit of goals outlined in Vision 2030 signals a promising future for logistics in Saudi Arabia and the region.