Saudi Arabia Invests $267 Billion in Logistics
Saudi Arabia plans to invest over SR1 trillion ($267 billion) in logistics by 2030 to establish itself as a global hub, according to Transport Minister Saleh bin Nasser Al-Jasser. Already, SR200 billion has been allocated, significantly boosting the Kingdom’s logistics sector.
At the Global Logistics Forum 2024, Al-Jasser highlighted the Kingdom’s rise in global rankings, including a jump in the World Bank’s Logistics Performance Index. The initiative, part of Vision 2030, aims to modernize transport systems and strengthen Saudi Arabia’s connectivity across three continents.
Al-Jasser emphasized the importance of this forum amid global logistics challenges, stressing the need for a secure and efficient supply chain. He also highlighted Saudi Arabia’s historical role as a trade hub and the Kingdom’s commitment to sustainability through initiatives like the Saudi Green Initiative.
Several significant deals were signed at the forum, including agreements for maritime connectivity with Egypt and collaborations to develop logistics zones. The Saudi Logistics Academy launched a training initiative for 7,800 individuals in the sector.
Saudi Post and Logistics Transformation
Saudi Post is set to open the region’s largest super sorting center, enhancing its supply chain capabilities. President Anef Abanomai announced the shift from manual sorting to automated, robotics-based systems, aligning with Saudi Vision 2030 to transform into a comprehensive logistics provider.
The pandemic accelerated this transformation, prompting innovations in healthcare logistics and other sectors. Saudi Post’s logistics arm now supports diverse industries, including e-commerce, by improving delivery solutions.
Saudi Stock Market Performance
The Tadawul All Share Index rose 74.99 points to close at 12,069.21, with a trading turnover of SR5.69 billion. The MSCI Tadawul Index and the parallel market Nomu also saw gains. Fawaz Abdulaziz Alhokair Co. was the top performer, while Al-Baha Investment and Development Co. saw the largest decline.
Saudi Advanced Industries Co. reported a 156.84% increase in net profit for the first nine months of the year. The Saudi Exchange approved Shatirah House Restaurant Co.’s transfer from Nomu to the main market.
Saudi Arabia’s Logistics and Technology Initiatives
Saudi Arabia is advancing its logistics sector with technological investments. The King Salman International Airport Development Co. announced a partnership to enhance logistics infrastructure, aiming to position the Kingdom as a regional logistics hub.
Minister of State for Foreign Affairs Adel Al-Jubeir highlighted the profitability of green logistics practices, predicting significant growth in the global green logistics industry. The Global Logistics Forum addressed challenges in the Red Sea, emphasizing resilience and diversification of transport routes.
Saudi Investment Minister Khalid Al-Falih announced plans to privatize four airports, enhancing operations through private management. The Kingdom’s strategy focuses on creating a regional logistics hub and embracing sustainable energy solutions.
Al-Falih also stressed the importance of technology in modernizing logistics, with digitalization and e-commerce platforms driving industry transformation.
