The Special Integrated Logistics Zone Company (SILZ) is advancing Saudi Arabia’s logistics landscape with the launch of “Riyadh Integrated,” the nation’s first special logistics zone. This initiative, covering 3 million square meters, was introduced by Saudi Arabia’s General Authority for Civil Aviation in 2022.
During the Global Logistics Forum in Riyadh, SILZ signed three significant memoranda of understanding (MoUs) aimed at fostering industrial growth, economic diversification, and job creation. These agreements highlight the strategic development of logistics capabilities in the region.
The first MoU involves a partnership with Shein, the retail giant, to establish a custom-built facility enhancing Saudi Arabia’s role in global supply chains. Another collaboration with the King Salman International Airport aims to bolster Riyadh’s air cargo capabilities.
A joint venture with Valcambi and Ajlan & Bros will establish the kingdom’s first precious metal refinery accredited by the London Bullion Market Association. This venture is part of the broader effort to streamline supply chains and introduce value-added services.
Dr. Fadi Al-Buhairan, CEO of SILZ, emphasized that these agreements are not just about isolated projects but about creating integrated value chains that enhance resilience and cost efficiency.
The “Riyadh Integrated” zone is designed to support light manufacturing, logistics, trade, and distribution, offering incentives like 50-year tax relief and full foreign ownership, to attract international businesses. Global companies, including Apple, are set to operate from this new zone.
This initiative aligns with Saudi Arabia’s Vision 2030 goals, particularly in transforming the aviation and logistics sectors. The aim is to significantly increase the kingdom’s annual cargo capacity from 1 million tons to 4.5 million tons by the end of the decade.
Additionally, the King Salman International Airport Development Company (KSIADC) has partnered with EWPartners, supported by Saudi Arabia’s Public Investment Fund, to create a special economic zone to boost trade with China. This KSA-Sino Logistics Zone will be located at the King Salman International Airport, planned to be one of the world’s largest airports by 2030.
The project is expected to attract over 3,000 wholesalers and retailers, alongside 200 light industrial manufacturers from China and Asia. Saudi Arabia’s transport and logistics minister, Saleh Al-Jasser, noted at the forum that the initial phase of the planned $266 billion investment to position Saudi Arabia as a global logistics hub has already reduced carbon emissions significantly.
The national transport and logistics strategy, launched in mid-2021, aims to invest over a trillion riyals by 2030, with 200 billion riyals already allocated to achieve these ambitious goals.
