What role does Saudi cargo play in Saudi's foreign trade? As the logistics link with China—Saudi’s largest trading partner for ten consecutive years—Saudi logistics plays a critical role. Since 2013, China has remained Saudi's top trade partner, with their economic interdependence steadily increasing. In 2023, bilateral trade between China and Saudi reached $107.23 billion, with Saudi exports to China amounting to $42.86 billion and imports from China totaling $64.37 billion. In the first half of 2024 alone, the trade volume has already surpassed $50 billion.
At the inaugural Global Supply Chain and Logistics Forum held in Riyadh, Saudi’s Minister of Transport and Logistics Services, Saleh bin Nasser Al-Jasser, announced an ambitious project—the China-Saudi Economic Zone.Supported by the Public Investment Fund (PIF) and developed in partnership with King Salman International Airport and EWPartners, this economic zone aims to bolster key industries such as manufacturing, logistics, and trade. It positions Saudi as a regional logistics hub and enhances cross-border trade with China and other Asian markets.
Chinese enterprises operating in Saudi will be able to establish production bases in the special economic zone, leveraging local natural resources to reduce production costs and capitalize on the country’s transportation advantages to improve logistics efficiency. This will enhance the flexibility of regional supply chains.
Addressing the challenges of Saudi’s underdeveloped postal code system and the high reliance on cash on delivery (COD), which accounts for 60% of transactions, Chinese companies have introduced an innovative “three-segment code address system” and a combined COD + POS terminal payment service. These solutions improve delivery accuracy and cash recovery efficiency, reducing e-commerce order fulfillment times from 7 days to under 3 days.
As the comprehensive strategic partnership between China and Saudi continues to deepen, this project aligns with global trade trends, facilitating access for foreign enterprises into emerging markets and further consolidating Saudi’s role as a regional logistics hub. This grand vision not only heralds a prosperous future for Saudi but also presents unprecedented opportunities for global investors. The establishment of the China-Saudi Economic Zone marks not only a new chapter in bilateral cooperation but also a significant turning point in the global economic landscape.
Ontask Express has specialized in Saudi door to door one-stop services for 20 years.With overseas warehouses and self-managed Chinese delivery teams based in Jeddah and Riyadh, we offer e-commerce-friendly logistics without appointment requirements.