Saudi Arabia plans to invest $267 billion in logistics by 2030

 

Saudi Arabia set to become a global leader in logistics by 2030

Saudi Arabia has unveiled plans to invest over $267 billion in its logistics sector as part of an ambitious strategy to establish itself as a global logistics hub by 2030. Speaking at the Global Logistics Forum 2024 in Riyadh on October 13, Saudi Minister of Transport and Logistics Services, Saleh bin Nasser Al-Jasser, announced that $53 billion has already been allocated to accelerate this goal.

Al-Jasser noted that these investments have positioned Saudi Arabia favorably on the global stage, reflected in its 17-rank climb on the Logistics Performance Index and a 14-place jump on the Global Connectivity Index from the International Air Transport Association.

Aligned with Crown Prince Mohammed bin Salman’s Vision 2030 initiative, the Kingdom’s strategy aims to modernize its transportation and logistics networks, creating a seamless trade link between Asia, Europe, and Africa. Al-Jasser emphasized the need for a resilient supply chain in light of recent global disruptions, stressing the importance of the logistics sector in ensuring the smooth flow of goods and services worldwide.

 

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Focus on Sustainability and Technological Innovation

Sustainability is a core component of Saudi Arabia’s logistics strategy. Last year, the Kingdom eliminated one million truck journeys through its rail network, contributing significantly to carbon emission reductions. Al-Jasser highlighted ongoing investments in green logistics as part of the Saudi Green Initiative.

The Minister also pointed to technological advancements like artificial intelligence, blockchain, and smart infrastructure as essential tools for enhancing the global supply chain. "By leveraging these new technologies, we are cutting costs, improving operational efficiency, and promoting environmental stewardship," he explained.

Private Sector Engagement and Key Partnerships

Private sector investment will play a crucial role in the Kingdom’s logistics transformation, with around 35% of total investments expected to come from private companies. Asma Al-Otaibi, Director of the Project Management Office at the Ministry of Transport, highlighted new government incentives designed to attract private investment in green mobility and other strategic areas within the logistics sector.

 

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During the forum, several agreements were signed, including a maritime cooperation deal with Egypt and a partnership between King Salman International Airport Development Co. and ewpartners. These agreements aim to establish an e-commerce and distribution hub at King Salman International Airport, further strengthening Saudi Arabia’s role as a regional air freight center.

Shaping the Future of Global Trade

The Global Logistics Forum, hosted at the King Abdullah Financial District, is focused on shaping the future of global trade by promoting efficiency, sustainability, and profitability. The two-day event showcases cutting-edge logistics technologies and innovations, fostering international collaboration amid the complex supply chain challenges facing the global economy.

Al-Jasser concluded by reaffirming Saudi Arabia’s historical significance as a trade hub: “We are once again at the forefront of global trade, backed by visionary strategies and world-class infrastructure.”

Source: https://www.transportandlogisticsme.com/