Transforming Logistics Industry In Saudi Arabia 2022

Saudi Arabia is the logistics powerhouse of the Middle East. The rising and transforming logistics industry in Saudi Arabia is good news but it is also facing various challenges. This country is on a fast-track mode, especially in diversifying the economy away from oil.

Saudi Arabia is now planning an ambitious path and is willing to become a go-to logistics hub that is efficiently linking trade across Africa, Europe, and Asia.

Logistics Industry Is A Strategic Market

Reforms are going to restructure regulations and governance while liberalizing the market and boosting the participation of the private sector.

• Transforming Logistics Industry In Saudi Arabia

The master plan of a new infrastructure that is integrated has been structured to improve the efficiency, safety, and quality of the logistics industry’s transport network. Road transport is the foremost form of passenger and freight transportation in the country.

Saudi made some huge investments and also budgeted SAR up to 21.0 billion to develop roads, industrial cities, postal services, information technology, communications, housing, airports, railways, and ports in 2018.

Some other networks like air, maritime, and rail are now experiencing rapid growth because of the logistics services development and high competition.

• Transforming Logistics Industry In Saudi Arabia As Strategic Market

Among so many vibrant sectors in the country, the logistics market is the most vibrant one. It witnessed 6 to 7% robust growth annually in the past few years. The country has a strong strategic benefit over some neighboring countries because of the country’s geographical location.

King Abdullah Port construction increases the trade scenario because of its proximity to Europe, India, and China that is facilitating mutually beneficial transport links.

The segment of freight forwarding is now dominating the country’s logistics market. It is followed by cold chain, value-added services, and warehousing. The initiatives of the country’s government have propelled the country’s logistics market.

• Jeddah As The Game Changer

Jeddah City is the game changer in transforming logistics industry in Saudi Arabia. This city holds the prime port where most of the cargo tonnage is loaded and offloaded both for imports and exports. This city contributes 36.0% to the logistics market’s revenue.

The location of the ports is on the coast of the red sea. It allows the city becomes the main contributor to the logistic industry’s revenue of the country. The other markets that play important roles in the country are Dammam and Riyadh.

Continuous innovation in many major companies such as advanced technologies development is expected to have a vital role, especially in transforming logistics industry in Saudi Arabia and strengthening the market competition.