RIYADH: Saudi Arabia is set to invest over SR1 trillion ($267 billion) in its logistics sector, underlining its ambition to become a global hub by 2030, according to a senior official.
Speaking at the inaugural Global Logistics Forum 2024, which began on Oct. 13 in Riyadh, Saudi Minister of Transport and Logistics Services Saleh bin Nasser Al-Jasser said SR200 billion of the total amount has already been deployed.
“These investments have translated into leapfrogs in the Saudi logistics sector, leading us to rise in global rankings, jumping 17 ranks in the Logistics Performance Index issued by the World Bank and 14 places in the Global Connectivity Index of the International Air Transport Association,” he said.
The country’s transport and logistics plan, launched by Crown Prince Mohammed bin Salman, aims to strengthen Saudi Arabia’s position as a global logistics hub connecting three continents.
This initiative, part of the broader Vision 2030 program, focuses on modernizing transportation systems, enhancing integration within the logistics network, and supporting the Kingdom’s overall development goals.
In his speech, Al-Jasser said there is no better time to hold this forum as the global logistics industry stands at a critical juncture.
“Current disruptions highlight the fundamental needs to ensure the safety and security of the supply chain and the seamless functioning of the backbone of global commerce, so economies thrive, goods get delivered, and people are connected,” he said.
The minister noted how logistics have impacted his own life, from delivering his favorite cup of coffee to his home to transporting vaccines to remote, otherwise unreachable areas.
Al-Jasser said that over the next two days, the forum will address the challenges facing the sector and shape a sustainable future that promotes prosperity for all.
“Where could it be better to hold the global logistics forum than at the crossroads of Asia, Europe, and Africa, the heart of global connectivity, where more than 40 percent of the world’s gross domestic product is reached within six hours,” he said.
Al-Jasser also highlighted Saudi Arabia’s historical significance as a trade hub, referencing ancient networks like the Incense Road, the Spice Road, and the sea route of the Silk Road.
“These routes, which spanned continents, carried not only goods but also ideas and cultures that shaped civilizations. Now, once again, we are at the forefront of global trade through cutting-edge infrastructure, such as King Salman International Airport, state-of-the-art seaports, and a robust rail network,” Al-Jasser added.
He also emphasized the Kingdom’s strides in sustainability through the Saudi Green Initiative.
“Last year alone, using the Saudi rail network, we eliminated the equivalent of 1 million truck journeys from our roads, drastically reducing carbon emissions,” he said.
Al-Jasser noted that advancements in technologies such as artificial intelligence, blockchain, and smart infrastructure are reforming the global supply chain, reducing costs, increasing speed, and protecting the environment.
Major deals
Following Al-Jasser’s speech, several agreements were signed, including a maritime connectivity cooperation agreement between the Kingdom’s Transport General Authority and the Egyptian Ministry of Transport.
King Salman International Airport Development Co. and ewpartners, an independent investment firm, signed a memorandum of understanding for collaboration in the KSA-Sino Logistics Zone. Additionally, the Mediterranean Shipping Co. and King Abdullah Port inked a contract for a temperature-controlled warehouse at King Abdullah Port.
Matarat Holding and the Ministry of Transport signed an agreement for 24 seats in the Custodian of the Two Holy Mosques Scholarship Program. ALTANFEETHI and the Ministry of Transport and Logistics Services signed a similar agreement for eight seats, while Saudi Arabia Railways secured 30 seats under the program.
The Saudi Logistics Academy, along with the Ministry of Human Resources and Social Development, launched an initiative to train 7,800 individuals in transport and logistics services through 60 different training programs and diplomas.
On the sidelines of the event, Agility, a global supply chain services provider, announced the final phase of its expansion at Agility Logistics Parks in Riyadh.
The SR250 million project will add 100,000 sq. meters of Class A warehousing, bringing the total space to 551,368 sq. meters. The first phase is expected to open in the first quarter of 2025, creating nearly 300 Saudi jobs.
Agility is also investing SR611 million to build a third logistics complex near Jeddah, according to a press release.
Michel Saab, global CEO of Agility Logistics Parks, said the Riyadh expansion is more than just increasing capacity — it represents a significant contribution to Saudi Arabia’s logistics market and will attract global firms to grow in the Kingdom.
“By building world-class warehousing, we are able to provide critical infrastructure that is helping to make the Kingdom a global and regional logistics hub,” he said.
The Global Logistics Forum 2024, organized by the Ministry of Transport and Logistics Services and held under the patronage of King Salman, aims to redefine the global landscape of trade and supply chains.
By bringing together ecosystem partners at the King Abdullah Financial District in Riyadh, this two-day forum seeks to enhance efficiency, resilience, sustainability, and profitability, ultimately fostering prosperity in an increasingly interconnected world.
Amid challenges such as international tensions, economic instability, complex supply chains, and the growing impact of climate change, the logistics sector is at a pivotal moment.
The forum aims to bolster international collaboration and drive growth in the logistics sector by showcasing the latest technologies and innovative solutions.
This first edition of the Global Logistics Forum marks a pivotal event for the Ministry of Transport and Logistics Services as it seeks to revolutionize global trade and supply chains by enhancing efficiency and profitability.
