Saudi Warehousing & Logistics: Rapid Growth & Global Hub Ambition

Saudi Warehousing & Logistics: Rapid Growth & Global Hub Ambition

13 Jun, 2025

Why is it important to develop the Saudi warehousing and logistics industry?

Saudi warehousing and logistics sector is experiencing booming growth, becoming a key logistics hub in the Middle East and global supply chains. The Saudi government aims to expand the logistics market from $5.3 billion in 2022 to $15.3 billion by 2030, backed by an investment plan exceeding 1 trillion riyals (~$26.7 billion) to position the Kingdom as a global logistics center.

Through initiatives like the Global Supply Chain Resilience Initiative (GSCRI), Saudi Arabia attracts export-oriented investments in areas such as advanced materials and critical mineral processing, with Chinese companies playing a pivotal role.

Policy & Infrastructure:

New Investment Law eases foreign entry, granting equal treatment.

Major port/airport upgrades (e.g., Jeddah port capacity doubling to 4M TEUs) and privatization (Medina Airport, King Abdullah Port).

New logistics zones like the $1B "Falcon City" near Riyadh.

E-commerce & Location:

COVID-19 fueled e-commerce boom, driving demand for modern warehousing (Riyadh space: 28M sqm).

Strategic location connecting Asia, Africa, Europe cuts Europe/Africa shipping times by 50%. Key for Belt and Road.

Projects & Tech:

Major developments like Jeddah Logistics Park (415k sqm, $250M, 2026 completion).

Adoption of AS/RS, robots, WMS, and RFID tech.

International Cooperation & China's Role:

Deepening cooperation: Lenovo/PIF manufacturing, Zijin mining projects, JD.com/SEC smart warehousing, Cainiao optimizing Europe-ME routes.

Chinese firms (JD.com, Cainiao, iMile) compete in smart warehousing and last-mile delivery.

Major trade shows (Saudi Warehousing & Logistics Expo, Sept 1-3; Middle East Logistics Expo, Sept 9-11, 2025) attract global players.

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!

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