Why has Saudi recently elevated the logistics sector to a core national strategy?
To reduce its reliance on oil, Saudi has positioned logistics as a pillar of economic diversification. Leveraging its strategic location at the crossroads of Europe, Asia, and Africa, the Kingdom aims to transform into a global logistics hub. Under Crown Prince Mohammed bin Salman's National Transport and Logistics Strategy (NTLS), Saudi plans to invest $267 billion to rank among the top 10 countries in the World Bank's Logistics Performance Index (LPI) by 2030, while increasing the logistics sector's share of GDP from 6% to 10%.
Infrastructure and Network
Logistics Center Clusters: A national plan envisions 59 logistics centers covering over 100 million square meters, strategically distributed across key regions such as Riyadh (12 centers), Mecca (12 centers), and the Eastern Province (17 centers). Currently, 21 centers are under construction, with all set to be operational by 2030. These hubs aim to streamline e-commerce and export supply chains.
Port and Aviation Upgrades: At Jeddah Islamic Port, Maersk is investing $346 million to build the Middle East's largest logistics facility. In Riyadh, the King Salman International Airport houses a China-Saudi Special Economic Zone (4 sq. km), integrating manufacturing, trade, and logistics. The newly launched cargo airline Riyadh Air plans to serve 100 global destinations by 2030.
Policy and Technology
Unified Licensing and Digitization: A single logistics license has been introduced, with over 1,500 licenses issued, attracting global players like Kuehne+Nagel. The customs platform FASAH enables 2-hour clearance, significantly improving efficiency.
Privatization and Green Transition: Privatization of ports such as King Abdullah Port is being promoted, alongside the privatization of the four major airports. In parallel, efforts are being made to support carbon neutrality through the development of low-carbon logistics infrastructure.
Ontask Express focuses on the Saudi special line, providing customers with efficient and reliable Saudi door to door logistics, with a focus on the Middle East region. With overseas warehouses in Jeddah and Riyadh, along with a self-managed Chinese delivery team, we empower Chinese products to go global and benefit all humanity!