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Saudi Arabia’s Logistics Revolution

Transforming into a Global Logistics Hub by 2030

by Huda Marshad
October 14, 2024
in Logistics
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Saudi Arabia’s significant investments in the transport and logistics sector have propelled the nation forward in global rankings. The Minister of Transport and Logistics, Eng. Saleh Al-Jasser, highlighted these advancements during the Global Logistics Forum in Riyadh.

The Kingdom’s National Strategy for Transport and Logistics, initiated in 2021 by Crown Prince Mohammed bin Salman, plans to invest over SR1 trillion by 2030. Already, SR200 billion has been allocated, contributing to Saudi Arabia’s rise by 17 places on the World Bank’s Logistics Performance Index and 14 places on the IATA’s Global Connectivity Index.

Al-Jasser emphasized the importance of infrastructure investments, customs procedure simplification, and innovation for the growth of logistics and the national economy. He noted that strategic government initiatives are crucial for reshaping the logistics sector and enhancing global supply chain connectivity.

The minister also pointed out that Saudi Arabia is positioned at the intersection of major global trade routes, such as the Incense and Spice Road and the maritime Silk Road. The Kingdom is undertaking major projects, including establishing King Salman International Airport and modernizing railway networks and ports, to become a global logistics hub as part of Vision 2030.

Al-Jasser stressed the need for secure and efficient supply chains in current global conditions, highlighting Saudi Arabia’s role in global connectivity, with over 40% of the world’s GDP accessible within six hours from the Kingdom.

The Global Logistics Forum aims to foster collaboration among logistics experts and leaders to shape the sector’s future. Strategic public-private partnerships are essential, and Saudi Arabia is making strides in sustainability through initiatives like the Saudi Green Initiative, which has significantly reduced carbon emissions by shifting transportation to railroads.

Tags: Global ConnectivityInfrastructure InvestmentsSaudi ArabiaTransport StrategyVision 2030
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