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Saudi Arabia’s Railway Localization Efforts

Empowering local industry through strategic partnerships and innovation

by Huda Marshad
November 17, 2024
in Logistics
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The Saudi Railway Company (SAR) is set to introduce a program aimed at localizing the railway industry. Having achieved over 50% local spending in 2023, SAR plans to reach 60% by 2025 through strategic partnerships.

SAR’s CEO, Dr. Bashar Al Malik, announced that the program will be launched at the Saudi International Railway Conference in Riyadh on November 20–21. This event, under the patronage of Eng. Saleh Al-Jasser, will highlight advancements in the railway sector.

The conference aims to identify specific goals and investment opportunities, such as establishing manufacturing facilities in Saudi Arabia and enhancing local services through collaborations with global railway leaders. This initiative is designed to empower the private sector, support SMEs, and invest in sustainable technologies.

SAR has already initiated projects with public and private sectors to localize railway operations, significantly boosting local spending and creating over 10,000 jobs. The Saudization rate exceeds 88%.

Saudi Arabia is at the forefront of adopting electric high-speed trains with zero emissions, like the Haramain High-Speed Railway. SAR’s hydrogen train trials, a first in the Middle East and Africa, underscore its commitment to environmental sustainability.

Rail transport offers an eco-friendly alternative, reducing vehicle numbers on roads and lowering carbon emissions, thus protecting the environment and improving safety.

Railways are vital for logistics, promoting trade and economic growth. In Saudi Arabia, they ensure the smooth flow of global trade, even amid geopolitical challenges.

Saudi trains efficiently transport goods from the Red Sea, with shipments rerouted to the Eastern Province’s ports, then carried to Riyadh via SAR trains.

Additionally, Saudi Arabia is developing major projects like the Land Bridge and the GCC Railway Link, crucial for realizing Vision 2030’s goal of becoming a global logistics hub.

Tags: Railway LocalizationSaudi Railway CompanySustainable TransportVision 2030
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