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Saudi Arabia’s New Logistics Hub with China

KSA-Sino zone aims to connect Asia, Africa, and Europe

by Huda Marshad
October 15, 2024
in Logistics
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Saudi Arabia is set to partner with China to establish a logistics special economic zone, aiming to position the kingdom as a central logistics hub connecting Asia, Africa, and Europe. This initiative was announced at the Global Logistics Forum 2024 in Riyadh, aligning with the Vision 2030 plan.

The project, known as the KSA-Sino Logistics Special Economic Zone, will be developed within the King Salman International Airport in Riyadh. It will cover 4 square kilometers and unfold over four phases in 12 years. Ewpartners and the King Salman International Airport Development Company will lead the initiative.

The zone will offer an integrated ecosystem featuring global enterprises, logistics facilities, supply chains, and high-end manufacturing. This development is expected to significantly enhance Saudi Arabia’s distribution capabilities, both regionally and globally.

Transport Minister Saleh bin Nasser Al-Jasser emphasized the importance of the zone in achieving Vision 2030, with planned investments exceeding 1 trillion riyals by 2050. He highlighted the need for secure and efficient supply chains to support thriving economies.

The project will encourage international companies to set up manufacturing operations within the zone, aligning with the “Made in Saudi” initiative to boost local production for global markets. The zone is projected to attract over 3,000 wholesalers and retailers and about 200 light industrial manufacturers from Asia.

Marco Mejia, acting CEO of the King Salman International Airport Development Company, remarked on the strategic partnership’s role in making the airport a prominent logistics hub and supporting Saudi Arabia’s trade growth.

Jerry Li of Ewpartners noted that the project will leverage the strategic location of the King Salman International Airport as a gateway between continents, unlocking potential for cross-border trade and innovation in logistics and e-commerce sectors.

The site will include a logistics and light industrial park, an international commercial park, living spaces, and supporting facilities, enhancing Saudi Arabia’s attractiveness as an investment destination by providing comprehensive services for professionals.

Tags: China partnershipEconomic zoneKing Salman AirportSaudi ArabiaVision 2030
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