Saudi Arabia is advancing its logistics capabilities with the development of ‘Riyadh Integrated’, the nation’s first special logistics zone. This initiative is driven by the Special Integrated Logistics Zone Company (SILZ), which has formalized three memoranda of understanding (MoUs) aimed at boosting industrial growth and creating jobs.
During the Global Logistics Forum in Riyadh, SILZ partnered with Shein to establish a custom-built facility enhancing supply chain participation. Another collaboration with King Salman International Airport will create a logistics platform to bolster Riyadh’s air cargo operations. Additionally, a joint venture with Valcambi and Ajlan & Bros will establish the White Palm Refinery, the first London Bullion Market Association-accredited precious metals refinery in the kingdom.
These agreements are set to streamline supply chain processes, offer value-added services, and expand Saudi Arabia’s logistics capacity. Dr. Fadi Al-Buhairan, CEO of SILZ, emphasized the creation of full value chains that deliver resilience and cost savings.
Riyadh Integrated will focus on light manufacturing, logistics, trade, and distribution, providing 50-year tax relief, zero percent corporate income tax, VAT and withholding tax exemptions, and 100 percent foreign ownership. The zone, spanning three million square meters, was launched by the General Authority for Civil Aviation in 2022, with Apple among the global firms operating there.
These developments align with Saudi Arabia’s Vision 2030, which aims to elevate the nation’s aviation and logistics sectors, increasing cargo capacity from one million to 4.5 million tonnes annually by decade’s end.
In addition, the King Salman International Airport Development Company has partnered with EWPartners to establish a special economic zone to enhance trade with China. This KSA-Sino Logistics Zone, located at the King Salman International Airport, expects to attract over 3,000 wholesalers and retailers, along with 200 light industrial manufacturers from China and Asia.
Transport and logistics minister Saleh Al-Jasser highlighted that the initial phase of a $266 billion investment plan to transform Saudi Arabia into a global logistics hub has already significantly reduced carbon emissions.
The national strategy, launched in 2021, plans to invest over a trillion riyals by 2030, with 200 billion riyals already allocated.
