Saudi Arabia’s $267 Billion Push to Become a Logistics Hub

Saudi Arabia's $267 Billion Push to Become a Logistics Hub

Saudi Arabia's $267 Billion Push to Become a Logistics Hub

The historical role of Saudi Arabia as a commercial hub was highlighted by Al-Jasser further citing ancient networks such as the Incense Road, the Spice Road, and the Silk Road’s sea route.

As per officials, Saudi Arabia is set to invest over SR1 trillion ($267 billion) in the logistic sector in the nation. This move highlights their ambition to become a global hub in the next couple of years by 2030. 

Saudi Minister of Transport and Logistics Services, Saleh bin Nasser Al-Jasser spoke at the inaugural of the Global Logistics Forum 2024 which took place in Riyadh and began on Oct 13. The minister stated that SR200 billion of the total investment amount has already been deployed. 

“These investments have translated into leapfrogs in the Saudi logistics sector, leading us to rise in global rankings, jumping 17 ranks in the Logistics Performance Index issued by the World Bank and 14 places in the Global Connectivity Index of the International Air Transport Association,” he said.  

Launched by Crown Prince Mohammed bin Salman, the country’s transport and logistics plan aims to become the global logistics hub and strengthen Saudi Arabia’s position to connect the three countries. 

The initiative focuses on enhancing integration within the logistics network, focuses on modernizing transportation systems and supporting the Kingdom’s overall development goals while it is also a part of the broader perspective of the Vision 2030 program. 

Al-Jaseer mentioned in his speech that this is the best time to hold this forum in place as the global logistics industry is placed at a critical juncture. 

The Saudi Arabia minister spoke about how logistics had influenced his own life, from delivering his favorite cup of coffee to his house to transporting vaccines to remote, otherwise inaccessible locations. 

Al-Jasser stated that during the next two days, the meeting would address the sector’s difficulties and design a sustainable future that benefits everyone in Saudi Arabia. 

The historical role of Saudi Arabia as a commercial hub was highlighted by Al-Jasser further citing ancient networks such as the Incense Road, the Spice Road, and the Silk Road’s sea route.   

The advances in technology such as blockchain, intelligence and smart infrastructure are taking over the global supply chain by decreasing lowering prices, increasing speed and protecting the environment, as per Al-Jasser. 

Several deals were signed following Al-Jaseer’s speech. They included a maritime connectivity cooperation agreement between the Egyptian Ministry of Transport and the Kingdom’s Transport General Authority. 

King Salman International Airport Development Co. and ewpartners, an independent investment group, have signed a memorandum of understanding to collaborate in the Saudi-Sino Logistics Zone. Additionally, the Mediterranean Shipping Co. and King Abdullah Port signed a deal for a temperature-controlled warehouse at the port.  

Matarat Holding and the Ministry of Transport reached an agreement to fill 24 places in the Custodian of the Two Holy Mosques Scholarship Program. ALTANFEETHI and the Ministry of Transport and Logistics Services reached a similar arrangement for eight seats, while Saudi Arabia Railways secured 30 seats under the program. 

The Ministry of Human Resources and Social Department along with the Saudi Logistics Academy introduced an initiative for the training of 7,800 individuals through 60 different training programs and diplomas in the transport and logistics services. 

Agility, a global supply chain services provider launched the final stage of its expansion in Riyadh

The project worth SR250 million will add Class A of 100,000 square meters which may increase the total space to 551,368 soiree meters. The launch of the first phase is set to take place in the first quarter of 2025. This may lead to the generation of about 300 Saudi employment. 

According to a press announcement, Agility will invest SR611 million to establish a third logistics center near Jeddah. 

According to Michel Saab, global CEO of Agility Logistics Parks, the Riyadh expansion is more than just adding capacity; it will make a substantial contribution to Saudi Arabia’s logistics business and attract global firms to grow in the Kingdom. 

At the crossroads of the logistics industry may include issues like economic instability, international tensions, complicated supply chains and the increasing impact of climate change.

The forum aims to promote collaboration worldwide and achievements in the logistics sector by showcasing cutting-edge technologies and innovative solutions. The Global Logistics Forum’s first edition marks a milestone for the Ministry of Transport and Logistics Services. This forum aims to transform supply chain and global trade by increasing efficiency and profitability.

Exit mobile version