Saudi Arabia is set to enhance its role as a global logistics hub by collaborating with China to establish a logistics special economic zone. This initiative, discussed at the Global Logistics Forum 2024 in Riyadh, is part of Saudi Arabia’s Vision 2030 to diversify its economy beyond oil.
The KSA-Sino Logistics Special Economic Zone will be located at King Salman International Airport in Riyadh, with construction beginning next year. This project aims to boost the country’s logistics, trade, and manufacturing sectors.
Transport Minister Saleh bin Nasser Al-Jasser emphasized the importance of enhancing infrastructure to ensure the security of supply chains. Saudi Arabia plans to invest over 1 trillion riyals in its transport and logistics infrastructure by 2050, a key component of Vision 2030.
The logistics zone supports the “Made in Saudi” program, encouraging international companies to manufacture in Saudi Arabia for global export, thus boosting local businesses.
Ewpartners, a private equity firm, will partner with the King Salman International Airport Development Company to develop the zone, covering 4 square kilometers over 12 years. The project is expected to attract over 3,000 wholesalers and 200 manufacturers, primarily from Asia.
Marco Mejia, acting CEO of the airport development company, highlighted the partnership as crucial for establishing the airport as a leading logistics hub. This collaboration aims to enhance logistics infrastructure and create new economic growth opportunities in the region.
Jerry Li, Founder of Ewpartners, noted their commitment to Saudi Arabia’s vision of becoming a logistics hub. He emphasized that the strategic location of the airport will unlock potential for cross-border trade, fostering growth in logistics and e-commerce sectors.
The economic zone will feature a logistics park and an international commercial park, designed to attract foreign investment and promote trade. It will also provide living spaces and amenities, enhancing Saudi Arabia’s attractiveness as a global investment destination.
