FedEx is making a significant move into Saudi Arabia, investing $1.5 billion to establish a major regional hub at King Salman International Airport in Riyadh. This expansion, according to multiple industry sources, is closely aligned with the Kingdom’s Vision 2030 plan to transform the country into a global logistics and trade center.
Saudi Arabia’s logistics sector is undergoing rapid modernization. The government is investing in multimodal transport networks, shifting from road-focused freight to integrated rail, air, and port systems. Projects such as the rail link between Jubail Commercial Port and Riyadh Dry Port are reducing transit times and costs while improving sustainability. By 2030, the number of logistics zones is expected to rise from 22 to 59, supported by investments totaling SR10 billion ($2.7 billion), according to industry reports.
FedEx’s Riyadh hub is central to these changes, streamlining customs, pickup, and delivery operations to address key trade bottlenecks. The hub connects the Gulf region with major markets in South Asia and Africa, leveraging Saudi Arabia’s strategic location. This improved infrastructure has already contributed to a 52% increase in the Kingdom’s trade surplus in the first quarter of 2025, reaching $16.8 billion, as reported by sector analysts.
The e-commerce sector is another driving force. In 2024, Saudi Arabia’s e-commerce revenue reached $7.55 billion and is expected to grow at an annual rate of 12.10%, potentially hitting $68.94 billion by 2033, according to market research.
FedEx is meeting this demand with a range of services, including air freight and digital tracking tools, which benefit both businesses and consumers. Small and medium-sized enterprises in particular gain easier access to international markets without the need for large-scale logistics infrastructure.
Rising investment reflects growing confidence in the sector. Foreign direct investment in Saudi logistics reached $5.9 billion in the first quarter of 2025, up 44%, driven by public-private partnerships and a $1 trillion national logistics strategy, according to industry sources. FedEx’s commitment signals to global investors that Saudi Arabia is serious about becoming a global logistics leader by 2030.
