Saudi Arabia: A key regional hub for aviation
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Efficiency, reach, and speed are what air routes provide in the world of logistics. Playing a crucial role, they are essential for modern logistics and are invaluable for industries that require the rapid delivery or distribution of goods.
On Oct. 13, the Global Logistics Forum will host a fireside chat with the General Authority of Civil Aviation, discussing the role of air cargo in Saudi’s vision for global logistics.
Saudi Arabia’s aviation sector is emerging as one of the fastest-growing in the world as the nation seeks to become a regional aviation hub and a major tourist destination. By opening the sector to global operators and investors, streamlining licensing, and introducing new pro-competition policies as part of the Saudi Aviation Strategy, more than $100 billion in aviation investment is being enabled to support Vision 2030’s ambitious, transformative goals.
A key indicator of the aviation sector’s success is the 7 percent growth in air cargo, reaching 900,000 tonnes, and the record-breaking 112 million passengers achieved in 2023, according to GACA’s 2024 State of Aviation Report.
This passenger volume was surpassed by a 17 percent increase in the first half of 2024, with the number of flights growing by 12 percent compared to the same period last year, reaching 815,000. With substantial investment planned for tourism resorts and the development of the new airline, Riyadh Air, growth projections remain strong.
GACA President Abdulaziz Al-Duailej attributes Saudi Arabia’s success to its ability to “deliver integrated logistics solutions that span the entire transport sector, enabled through a unified national strategy and world-leading regulatory incentives for global logistics companies. Saudi Arabia is becoming a global logistics hub with significant expansion of air cargo capabilities already underway, leveraging the Kingdom’s location at the crossroads of three continents and within a five-hour flight of half the world’s population.” This is what sets Saudi Arabia’s aviation sector apart from others.
The aviation and logistics sectors are inextricably linked, creating a symbiotic relationship that drives trade and commerce. While aviation provides the vital infrastructure for efficient, long-distance transportation of goods, logistics ensures the movement of these goods from their origins all the way to their destinations.
The inaugural GLF is being held in Riyadh, hosted by the Ministry of Transport and Logistic Services under the patronage of King Salman bin Abdulaziz Al-Saud. It envisions a groundbreaking new global map of trade and supply chains, bringing together logistics ecosystem partners.
It would be remiss not to mention the current challenges faced by the logistics sector, which finds itself at a critical juncture. Entire industries and societies rely on effective logistics management, and the GLF presents an opportunity for stakeholders to come together and discuss innovative solutions that will pave the way for a sustainable and profitable future.
Ahmed Al-Hassan is an assistant minister of transport and logistic services in Saudi Arabia.
