Saudi Arabia is ambitiously aiming to become a global logistics hub by the end of the decade, planning to invest approximately $267 billion into its logistics sector. This move comes as the nation attracts prominent industry players.
Following the inaugural Global Logistics Forum, Ceva has partnered with Saudi’s Almajdouie Logistics to create Ceva Almajdouie Logistics. This joint venture intends to capitalize on the growing domestic supply chain market in Saudi Arabia. Ceva CEO Mathieu Friedberg emphasized the importance of seamless logistics and global connectivity for the country’s economic growth.
In addition to Ceva’s investment, MSC has secured an agreement for a temperature-controlled warehouse at King Abdullah Port. This year has seen several logistics giants expanding their operations in Saudi Arabia. For instance, Agility and the Saudi Railway Company (SAR) have signed an MoU to explore logistics needs in Sudair Industrial City and King Khalid Airport. Agility’s vice chair, Tarek Sultan, expressed optimism about Saudi Arabia leading the world’s supply chain sector.
Moreover, DHL and Maersk have shown interest, with Maersk launching a substantial logistics park at Jeddah Islamic Port, its largest in the region. This strong involvement from major companies aligns with the Saudi government’s strategy to modernize its transport systems and integrate them into regional and global logistics networks.
Saudi Arabia’s minister of transport and logistics services, Saleh bin Nasser Al-Jasser, highlighted that approximately $53 billion has already been invested in logistics projects. These investments have significantly improved Saudi Arabia’s position in global rankings, including a notable rise in the World Bank’s Logistics Performance Index and IATA’s Global Connectivity rankings.
Al-Jasser also pointed out the essential need for supply chain safety and security, emphasizing the importance of maintaining the seamless operation of global commerce’s backbone amidst current disruptions.
