Saudi Arabia Boosting Logistics Infrastructure with $2.66 Billion Investment
Saudi Arabia is ramping up its logistics infrastructure with the development of 18 new logistics zones, backed by investments exceeding SR10 billion ($2.66 billion), as revealed by senior officials.
This strategic move is part of the country’s larger plan to attract both local and global investments. Saleh Al-Jasser, the minister of transport and logistics, announced the Kingdom’s goal to increase the number of logistics zones from 22 to 59 by 2030 during the sixth edition of the Supply Chain Conference in Riyadh.
Al-Jasser highlighted the success of Saudi Arabia in strengthening its logistical capabilities, attracting major global companies to invest in the sector. He emphasized the commitment of both local and international private sectors to establish 18 logistics zones in ports, with total investments surpassing SR10 billion.
Saudi Arabia’s Rising Position in Global Container Handling Rankings
Al-Jasser also pointed out Saudi Arabia’s impressive progress in global container handling rankings, citing an additional 231 points gained in the Liner Shipping Connectivity Index and the addition of 30 new maritime shipping lines. This underscores the Kingdom’s crucial role in global trade.
He emphasized the Kingdom’s strong logistical capabilities, including advanced airports, efficient ports, and modern railway and road networks, which accelerate shipping, handling, and export activities, connecting Saudi Arabia to global markets.
Enhancing Saudi Arabia’s Position as a Global Logistics Hub
Al-Jasser stressed ongoing efforts to enhance Saudi Arabia’s position as a global logistics hub by integrating various transport modes into a unified and efficient system. This integration aims to boost competitiveness and facilitate seamless trade flows.
He reiterated the Kingdom’s commitment to enhancing logistical capabilities to facilitate exports, support supply chains, and improve performance in global logistics indicators. The focus remains on bolstering maritime shipping routes, expanding air freight operations, increasing rail freight capacities, and activating logistics centers to support sustainable development.
Logistics Key in Achieving Saudi Arabia’s Economic Strategy
Al-Jasser underlined the importance of supply chains in Saudi Arabia’s broader economic strategy, emphasizing their fundamental role in achieving sustainability and integration goals set out in the National Transport and Logistics Strategy and Vision 2030.
After his speech, Al-Jasser highlighted the growing interest from global multinational companies in Saudi Arabia’s logistics sector, attributing it to the Kingdom’s strategic location and commitment to becoming a global logistics hub.
Minister Alkhorayef Emphasizes Saudi Arabia’s Industrial Advantages
Minister of Industry and Mineral Resources Bandar Alkhorayef underscored Saudi Arabia’s natural resources and abundant energy supply as crucial advantages for its industrial sector. He highlighted the vital role logistics plays in enabling Saudi industries to compete globally.
Alkhorayef mentioned the Kingdom’s robust local demand and the Gulf region’s high purchasing power, creating significant opportunities for businesses and investors in essential sectors like food security, healthcare, pharmaceuticals, and water-related industries.
Saudi Arabia’s Success in Re-Exports and Strategic Location
Alkhorayef acknowledged global challenges such as the COVID-19 pandemic and geopolitical conflicts, emphasizing that these issues highlight Saudi Arabia’s potential to attract investments and address supply chain challenges using its resources and advanced technologies.
He also noted Saudi Arabia’s success in re-exports, reaching SR61 billion in 2024, showcasing outstanding capabilities, robust infrastructure, and seamless coordination among various entities.
The Northern Train Line: Cornerstone for Saudi Arabia’s Industrial Growth
Al-Jasser discussed the Northern Train Line as the Kingdom’s largest rail project, supporting the mining sector by connecting mining areas with key ports, vital for industrial and economic growth.
He mentioned the ongoing expansion and duplication of the Northern Train Line by the Saudi Railway Co., with investments exceeding SR5 billion, part of broader plans to enhance the mining sector and ensure efficient connectivity between the railway and eastern ports.
Aligning Industrial and Logistics Sectors with Vision 2030 Goals
Through these efforts, Saudi Arabia continues to align its industrial and logistics sectors with the ambitious goals of Vision 2030, fostering a sustainable and globally competitive economy.
The conference is a platform for international experts and specialists to share best practices and enhance supply chain performance and efficiency through engaging dialogue sessions, workshops, and an entrepreneurship corner.
Additionally, the conference aims to empower Saudi women in the supply chain sector, offering training and development opportunities to boost their contributions to the Saudi economy and open new career paths in key industries.