Saudi Arabia to Invest US$267 Billion in Logistics Sector by 2030
Saudi Arabia is set to invest over US$267 billion in its logistics sector, with a clear ambition to become a global hub by 2030, according to senior officials. During the Global Logistics Forum 2024, held on October 13 in Riyadh, Saudi Minister of Transport and Logistics Services, Saleh bin Nasser Al-Jasser, confirmed that US$53 billion has already been deployed towards this goal.
Al-Jasser explained, “These investments have enabled Saudi Arabia to rise significantly in global rankings, including a jump of 17 ranks in the Logistics Performance Index and 14 places in the Global Connectivity Index by the International Air Transport Association.”
This momentum aligns with the country’s long-term Vision 2030 strategy, spearheaded by Crown Prince Mohammed bin Salman, which aims to modernise transportation and logistics networks across the Kingdom.
The Kingdom’s strategy focuses on integrating transport systems, enhancing logistics operations, and positioning Saudi Arabia as a vital trade and logistics hub that connects Asia, Europe, and Africa. Al-Jasser emphasized the importance of the logistics industry at this time, stating,
"Current global disruptions highlight the need for a resilient supply chain that guarantees the seamless flow of goods and services across borders."
Sustainability and Technological Advances
One of the key areas highlighted by Al-Jasser was Saudi Arabia’s progress towards sustainability. He noted that last year alone, the country eliminated 1 million truck journeys through its rail network, significantly reducing carbon emissions.
He also acknowledged how technology is transforming the global supply chain, particularly through advancements in artificial intelligence, blockchain, and smart infrastructure.
“By embracing these new technologies, we are reducing costs, increasing operational efficiency, and protecting the environment,” he added. The Saudi Green Initiative, in particular, has been a major part of these sustainability efforts, with significant investments being made to enhance green logistics and mobility initiatives across the Kingdom.
Private Sector Investment and Major Deals
As part of the forum, Al-Jasser also stressed the importance of private sector investment in the Kingdom’s logistics sector, with approximately 35% of the total investment coming from private companies.
Asma Al-Otaibi, director of the project management office at the Ministry of Transport, explained that the government has introduced incentive packages to attract more private investment into green mobility initiatives and other key areas of the logistics sector.
During the event, several agreements were signed, including a maritime cooperation deal between Saudi Arabia and Egypt, as well as a partnership between the King Salman International Airport Development Co. and ewpartners to establish an e-commerce and distribution hub.
The logistics center at King Salman International Airport is set to enhance trade links between Saudi Arabia and China, further solidifying the Kingdom's role as a regional air freight hub.
Future of the Global Logistics Forum
The Global Logistics Forum, held at the King Abdullah Financial District, aims to shape the future of global trade by promoting efficiency, sustainability, and profitability within the logistics sector. The two-day event seeks to foster international collaboration by showcasing the latest technologies and innovations in logistics, which are critical at this juncture of international economic challenges and complex supply chain disruptions.
Al-Jasser concluded his remarks by emphasizing Saudi Arabia’s historical role as a key trade hub, noting, “We are once again at the forefront of global trade, driven by cutting-edge infrastructure and visionary strategies.”
Read More: Saudi Arabia's Foreign Trade Increases 40% in Last Year to Reach US$807 Billion
