Saudi Logistics Investment 2024: $2.66bn initiative to expand infrastructure with 18 new logistics zones

Saudi Arabia is advancing its logistics sector with a $2.66bn investment in 18 new logistics zones. Announced by Saudi Minister of Transport and Logistics, Saleh Al-Jasser, at the Supply Chain Conference in Riyadh, this initiative reflects Saudi Arabia’s commitment to achieving its goal of becoming a global logistics hub by 2030, supported by Saudi logistics investment in 2024.

The Kingdom’s logistics expansion is designed to attract both local and international investments, increasing the number of logistics zones from 22 to 59 over the next six years. With over $2.66bn committed to this ambitious project, these new zones will be integral to strengthening Saudi Arabia’s national economy and improving its trade infrastructure.

“The Kingdom has successfully strengthened its logistical capabilities to support the national economy. This progress has attracted leading global companies to invest in the logistics sector,” Al-Jasser stated during his speech, emphasizing the pivotal role of logistics in the Kingdom’s economic strategy.

Saudi Arabia’s logistics push is already paying off. According to UNCTAD’s 2024 report, the Kingdom has gained 231 points in the Liner Shipping Connectivity Index, adding 30 new maritime shipping lines. This growth reflects Saudi Arabia’s increasing influence on global trade and its commitment to enhancing regional and international supply chains.

Al-Jasser pointed out the Kingdom’s advanced infrastructure, including its network of airports, ports, and railways, which are essential to facilitating seamless trade and boosting the Kingdom’s competitiveness. He stressed that the integration of these transport modes into a unified system will significantly reduce logistical costs and improve efficiency, benefiting both local businesses and global trade partners.

“The focus will remain on bolstering maritime shipping routes, expanding air freight operations, increasing rail freight capacities, and activating logistics centres to support sustainable development,” Al-Jasser added, underscoring Saudi Arabia’s role as a critical player in international supply chains.

The Kingdom’s strategic location at the crossroads of Europe, Asia, and Africa provides it with a unique advantage in global trade. Saudi Arabia’s commitment to its National Transport and Logistics Strategy, aligned with Vision 2030, is paving the way for a more integrated and sustainable logistics network.

After the speech, Al-Jasser spoke to Arab News about the growing global interest in Saudi Arabia’s logistics sector, noting that it is not only creating job opportunities for Saudis but also making the country an increasingly attractive destination for multinational companies.

Minister of Industry and Mineral Resources, Bandar Alkhorayef, also highlighted the Kingdom’s natural resources and energy supply as key advantages for its industrial sector. He emphasized that robust supply chains and efficient logistics services are crucial for improving Saudi Arabia’s competitiveness in global markets, particularly in sectors like oil, gas, petrochemicals, and minerals.

Alkhorayef pointed out that Saudi Arabia’s geographical location, combined with its excellent infrastructure and competitive energy prices, makes it an ideal partner for manufacturing industries. He further noted that the Kingdom’s strong domestic market and the Gulf region’s purchasing power create significant opportunities for businesses, particularly in critical sectors like food security, healthcare, and pharmaceuticals.

In 2024, Saudi Arabia’s re-exports reached SR61 billion, marking a 23% growth compared to the previous year. This success underscores the Kingdom’s increasing role in global trade and the effectiveness of its logistical and industrial strategies.

Alkhorayef also acknowledged the challenges posed by global disruptions such as the COVID-19 pandemic and geopolitical tensions. However, he expressed confidence in Saudi Arabia’s ability to attract investments and leverage its resources and infrastructure to address these challenges.

Saudi Arabia’s logistics sector is clearly on an upward trajectory, with investments and infrastructure enhancements laying the foundation for the country’s long-term economic and industrial growth.