Saudi Arabia to Become a Global Logistics Hub with 59 Logistics Centres by 2030

Saudi Arabia has recently announced plans to emerge as a global logistics hub by establishing 59 logistics centres across the country. The initiative is part of its National Transport and Logistics Strategy. It is designed to enhance the country's logistics infrastructure and encourage foreign direct investment, ultimately expanding and diversifying the economy. It will be a considerable undertaking, but they're excited about the possibilities.

Saudi Arabia will set up 12 logistics centres each in Riyadh and Makkah, 17 centres in the eastern area, and the remaining 18 centres along the length and breadth of the country. The combined area of the 59 centres will be more than 100 million square meters. The country is currently working on 21 centres and aims to complete all 59 centres by 2030. 

Its favourable location between the three important continents—Asia, Africa, and Europe—will be an added advantage. 

The kingdom has nearly 300 projects in the pipeline to expand its transport and logistics sectors. It will invest more than 500 billion riyals to achieve this goal. The plan will have Saudi Arabia partnering with international and local private sectors, as per Abdulaziz Al Duailej, President of the General Authority of Civil Aviation. 

Quoting Crown Prince and Chairman of Saudi Arabia's Supreme Committee for Transport and Logistics, Mohammed bin Salman, "The plan is part of a package of continuing initiatives set as targets by the [NTLS] with the aim of developing the logistical sector to support the economy and increase the local, regional, and international connections of the international trade networks and global supply chains." 

He further added that the joint ventures with the private sector will generate more job opportunities. The logistics centres will enable Saudi industries to export products to various regions efficiently. It will also boost its e-commerce sector, an important link between its logistics centres and distribution hubs. 

The broader goal of the National Transport and Logistics Strategy is to increase the transport and logistics segments' input to non-oil revenue to 45 billion riyals by 2030. It also aims to raise the national GDP to 10 per cent by the end of this decade. This includes expanding airports and railway networks, improving ports' capacity, and setting up logistics hubs across Saudi Arabia. Read more here.