Saudi Arabia’s ports handled 3.4 million TEUs of inbound and 2.2 million TEUs of outbound containers in 2023, marking significant growth as the kingdom continues to push economic diversification

In 2023, Saudi Arabia‘s ports experienced a 14.6% rise in container traffic, as reported by the General Authority for Statistics (GASTAT). The Kingdom’s inbound container traffic reached 3.4 million twenty-foot equivalent units (TEUs), while outbound container traffic totalled 2.2 million TEUs. This increase signifies a robust year for Saudi ports and their growing role in international trade, supporting the nation’s efforts to diversify its economy away from oil dependence.

The data revealed that total outbound cargo from Saudi ports reached 203.5 million tonnes in 2023. King Fahad Industrial Port in Yanbu emerged as the leader in outbound cargo volume, handling 89.8 million tonnes, underscoring its vital role in Saudi exports. The nation’s focus on boosting non-oil exports aligns with Vision 2030, a strategic initiative aimed at reducing reliance on oil revenues while enhancing other sectors like manufacturing and logistics.

The year also saw an impressive 33.8% increase in ship traffic at Saudi ports, with a total of 19,082 ships docking throughout the year. King Fahad Industrial Port led with 6,538 ships, followed by Jeddah Islamic Port, which saw 4,411 ships, and King Abdulaziz Port in Dammam with 2,516 ships.

In terms of inbound cargo, the ports handled 105.1 million tonnes, with Jeddah Islamic Port receiving the highest volume at 38.9 million tonnes. The total cargo handled at all Saudi ports reached 334 million tonnes, broken down into 121.3 million tonnes of unloaded cargo and 213 million tonnes of loaded cargo. This robust cargo movement illustrates Saudi Arabia’s growing global trade footprint.

Passenger traffic also saw growth, with over 1 million travellers passing through the Kingdom’s ports, representing an 11.5% rise from 2022. Jazan Port handled the largest number of passengers, totalling 484,598 arrivals and departures, further solidifying the strategic importance of Saudi Arabia’s maritime infrastructure.

The Kingdom also expanded its port infrastructure, boasting 989 cranes across its ports in 2023. The total area of its ports now covers 104 square kilometres, with Ras Al Khair Port being the largest at 23 square kilometres.

Analysis:

Political:

Saudi Arabia’s rise in container traffic in 2023 is closely tied to its broader political agenda, particularly the Vision 2030 strategy, which aims to reduce the country’s economic reliance on oil. The Kingdom’s ports, serving as key nodes in global trade routes, have grown in strategic importance. This increase in traffic also reinforces Saudi Arabia’s political standing as a vital player in global commerce, bolstering its international relationships through trade. By enhancing infrastructure and operational capacity, Saudi Arabia strengthens its role in regional geopolitics, positioning itself as a maritime hub connecting Europe, Asia, and Africa. Politically, this gives the Kingdom greater leverage in discussions on trade agreements and economic partnerships.

Social:

The increased activity at Saudi Arabia’s ports mirrors the ongoing transformation of Saudi society. The expansion of the logistics sector has created job opportunities, aligning with the Kingdom’s goal to provide more employment to its growing youth population. Additionally, as port traffic grows, so does the Kingdom’s exposure to international goods and travelers, gradually influencing Saudi culture and societal norms. This economic growth facilitates the government’s efforts to modernize the workforce and increase female participation in sectors like logistics and trade, further reflecting societal change. The rise in passenger traffic, in particular, reflects an increased level of international engagement, signaling a more open and connected Saudi Arabia.

Racial:

Saudi Arabia’s burgeoning trade activity highlights the racial and ethnic diversity seen within its growing workforce, particularly in sectors such as logistics and port operations. Saudi ports, with their influx of international ships and passengers, foster interactions among various racial and ethnic groups, contributing to a more multicultural working environment. The Kingdom, traditionally reliant on expatriate labour, continues to attract workers from various regions, particularly South and Southeast Asia, which helps build a diverse workforce. As Saudi Arabia modernizes its economy, it is also adopting more inclusive policies that aim to integrate workers of different racial backgrounds more seamlessly into its national development goals.

Gender:

The growth in container traffic and infrastructure expansion at Saudi ports also plays a role in advancing gender equality. With Vision 2030, Saudi Arabia has set ambitious targets for increasing female participation in the workforce. The logistics sector, traditionally male-dominated, is slowly opening up to women as the government encourages diversity in employment. Additionally, Saudi Arabia’s maritime industry is beginning to recognize the importance of including women in key decision-making roles. While challenges remain, particularly in integrating women into sectors like logistics and heavy industry, the country’s focus on economic growth is helping to push forward gender reforms.

Economical:

Economically, the rise in container traffic highlights Saudi Arabia’s growing trade and export capabilities, essential for achieving its Vision 2030 objectives. The increase in both inbound and outbound traffic showcases the Kingdom’s expanding influence in global trade. By investing in port infrastructure and increasing capacity, Saudi Arabia can facilitate more non-oil exports, diversifying its revenue sources. The significant rise in non-oil outbound cargo, including petrochemicals, manufacturing goods, and agricultural products, is crucial for reducing dependency on volatile oil markets. Additionally, the increase in ship traffic points to Saudi Arabia’s ability to handle larger volumes of trade, positioning its ports as global logistics hubs. This economic diversification helps shield the Kingdom from fluctuations in global oil prices, securing long-term financial stability.

The expansion of port operations also stimulates the local economy by creating jobs, attracting foreign investments, and supporting the growth of small and medium-sized enterprises (SMEs). The ripple effect of this growth extends into various sectors, including transportation, retail, and hospitality, which benefit from increased cargo and passenger traffic.

However, as global trade faces challenges from geopolitical tensions and supply chain disruptions, Saudi Arabia must continue investing in its maritime infrastructure to remain competitive. This includes adopting digital technologies to streamline port operations, increasing automation, and improving environmental sustainability within its logistics sector. By doing so, Saudi Arabia can ensure that its ports not only meet current demand but also future-proof its economy against global trade shifts.