Logistics in Saudi Arabia: How It Relates to Vision 2030

Logistics in Saudi Arabia is one of the most important modern sectors within the transportation system, and the National Transport and Logistics Strategy aims to develop it.

Importance of Logistics in Saudi Arabia:

• Saudi Arabia enjoys a strategic geographic location at the crossroads of global trade routes.
• It is the only country located between two seas: the Arabian Gulf to the east and the Red Sea to the west.
• A third of the world’s oil exports pass through the Arabian Gulf.
• 13% of global trade passes through the Red Sea.
• Saudi Arabia connects commercial markets that serve over six billion people.
• The Kingdom advanced 72 places in the 2019 “Trading Across Borders” index.
• The transportation system in Saudi Arabia has established several logistics zones, including the Al-Khomra area.
• The country has the largest economy in the Arabian Peninsula, the Levant, and Iraq.
• It contributes around 48% of the region’s GDP and 21% of its population.
• Saudi Arabia is a member of the G20, a group of the world’s largest economies.

National Transport and Logistics Strategy Objectives:

Saudi Arabia, through its National Strategy for the transport and logistics sector, seeks to move forward in integrating and linking the system in line with Vision 2030, aiming to achieve the following goals:

1. Enhancing Integration Across Transport Modes:
   • Strengthening links between maritime, air, land, and rail transport to improve goods and freight services.
2. Incorporating Modern Technologies:
   • Utilizing automation across ports, infrastructure, and logistics.
3. Continuing the Kingdom’s Progress:
   • Saudi Arabia aims to advance in the Logistics Performance Index from 55th place to the top 10, ensuring regional leadership.
4. Classifying Saudi Cities:
   • Logistics will support the Kingdom’s plan to rank three Saudi cities among the world’s top 100 cities.
5. Saudi Arabia as a Key Hub:
   • With advanced ports and railway connections, the Kingdom will become a key hub for global projects aimed at developing trade between East and West.
6. Saudi Arabia’s Global Standing:
   • The numerous reforms and initiatives in Saudi Arabia’s logistics sector reinforce its position as one of the fastest countries in the world to make and implement decisions.
7. Attractiveness of the Saudi Market:
   • Connections with neighboring countries increase the attractiveness of the Saudi market for investors and facilitate movement and transportation of goods.

Key Factors Strengthening Saudi Arabia’s Logistics Sector:

Several factors have collectively enhanced the strength of the logistics sector in Saudi Arabia, including:

• Digital Transformation:
  • The Kingdom has adopted innovative digital technologies and solutions, such as artificial intelligence and the internet, to improve production management and streamline local, regional, and international connections.
• Advanced Infrastructure:
  • Massive investments in transportation and port infrastructure are major contributors to enhancing logistics operations.
• Government Support:
  • The government’s emphasis on developing and promoting this sector, including the personal involvement of Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud, plays a crucial role.
• National Logistics Centers Plan:
  • As part of ongoing initiatives under the National Transport and Logistics Strategy, a comprehensive plan has been launched to establish 59 logistics centers, covering over 100 million square meters, distributed as follows:
    • 12 centers in Riyadh
    • 12 centers in the Makkah region
    • 17 centers in the Eastern Province
    • 18 logistics centers across other regions of the Kingdom.

  An additional 21 centers are currently being developed, with plans for completion before 2030.

Logistics Strength Tied to Various Sectoral Developments:

Saudi Arabia’s logistics strength is also tied to developments in various sectors, such as storage, supply chain management, modern warehouses, and advanced inventory and distribution management systems. These developments have collectively improved the speed and accuracy of market responses, thanks to technological advancements, infrastructure development, and government support for this vital sector.

Ban Globe Logistics Services:

Ban Globe provides comprehensive logistics services across Saudi Arabia, the Gulf countries, and globally, including air, land, and sea freight, customs clearance, storage, packaging, and more. To learn about our services [click here], and feel free to contact us with any inquiries through our website or social media platforms, or directly by calling:
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