Transport and Logistics Sector in Saudi Arabia

The transport and logistics sector in Saudi Arabia is a growing sector of the country's economy. In alignment with Vision 2030, the country strives to become a global logistic hub, allowing for the logistic sector to become a meaningful contributor to the Gross Domestic Product (GDP).

Transportation_Airport_walking_Image by Rudy and Peter Skitterians from Pixabay_airport-4120835_1920.jpg — from Pixabay, ID airport-4120835_1920 / by Rudy and Peter Skitterians

Owing to development efforts in the logistic sector, the National Transport and Logistic Strategy, which aims to boost the transport and logistics sector's contribution to the GDP from 6% to 10% by 2030 and increase the annual income to 12 billion USD, was created.

Accordingly, the construction of 37 new logistic centers, the expansion of sea and airports, in addition to tax reliefs for selected companies in the sector are planned. The first special integrated logistics zone opened at King Khalid International Airport in fall of 2022.

With the Saudi Land Bridge (a 950 km long train connection), and the Industrial City Oxagon in NEOM, the Kingdom aims to become the logistic hub of the region. Expansions of the air freight and container capacities as well as the development of the aviation industry through the new airlines Riyah Air and NEOM air are planned.

Similarly, the public land transportation in Riyadh and Jeddah are being expanded with the opening of the Riyadh Metro in 2024. To strengthen the sector, investors in new technology and infrastructure totaling 267 billion USD are expected. Of these, 53 billion USD have already been realized. These initiatives underline Saudi Arabia's goals to establish itself as a global transportation and logistics hub.

Transportation railway tracks desert
from Pixabay, ID railway-4749726_1920 / by Urs Widmer

Transportation and Logistics Sector in brief

Market volume: $ 27,14 bn. (2023)

Growth projection: 5.76% per annum

Current Trends:

Digitalization of supply chains
Aviation industry
Public land transportation
Smart Mobility Solutions

Transportation Metro tracks High Line
from unsplash, ID PVTQ_wYwbkw / by kyle-hinkson

37 New logistic centers planned

by 2030
267 bn. US Dollar

Expected investments in technology and infrastructure
4% Growth in contribution to GDP

by 2030

Opportunities for German Companies

Saudi Arbia is making considerable efforts to transform its transportation and mobility sector and to develop the Kingdom into a global logistic hub. The sector will also benefit from major events such as EXPO 2030, the 2029 Asian Winter Games and the 2034 FIFA World Cup. These developments open up a wide range of opportunities for German companies - from large corporations to small and medium-sized enterprises - to contribute their expertise to the Saudi market. Technologies in the areas of smart traffic planning, freight and transport tracking, local and long-distance public transport and airport technologies are particularly in demand. German companies can also become active in the training of skilled labor in Saudi Arabia.

Gate Alliance Delegationsreise December 2023 Jeddah

News

Gate Alliance Delegation| December 2023

GESALO organized a market exploration trip from January 17 - 19, 2023 together with the trade association German Airport Technology and Equipment e.V. (Gate Alliance).