Business Development Mission to Saudi Arabia: A Global Logistics Hub by 2030
September 25 - September 28
Riyadh, Jeddah, King Abdullah Economic City (KAEC), Saudi Arabia
Join this UNIQUE OPPORTUNITY to meet Saudi public entities driving the development of the logistics and supply chain ecosystem and find potential business partners.
Saudi Arabia is the only country to have three major maritime straits, with approximately 30 percent of global seaborne trade passing its boundaries. It ranks sixth in the Agility Emerging Markets Logistics Index 2022 Survey. The country has earmarked milestones for the rail, road, maritime, and aviation sectors, launched strategies, programs, special economic zones (SEZs), and regulatory and incentive packages to take advantage of the Kingdom’s position at the center of Asia-Africa/Europe-Asia trade and transform it into a global logistics hub.
- By 2030, the logistics sector is anticipated to include six port zones, four air cargo centers, 10 dry port zones, 10 land border crossings, 18 industrial logistics zones, 50 in-country distriparks, 10 SEZs, and eight international distriparks. An estimated 21 logistics zones and 5 SEZs are currently active.
- Digitization enhancements have already driven state-led and private sector logistics innovation in the areas of licensing, registration, passenger and cargo flow, import and export financing, and internet of things (IoT) technology that have boosted the sector’s operational efficiency.
An estimated $147 billion in investments into the sector are expected with the private sector accounting for 65 percent of that amount while 35 percent will be funded by the government through attracting growing shares of FDI, sale of state-owned assets, and joint venture partnerships with domestic entities.
Mission Itinerary Highlights
Riyadh, Capital of Saudi Arabia
- Home of Riyadh Air Cargo Village and the Riyadh Special Integrated Logistics Zone (SILZ), one of the region’s largest, recently launched at King Khalid International Airport in Riyadh. The facilities will prioritize consumer electronics, computer products, pharmaceuticals, nutritional & medical supplies, aerospace spare parts, luxury goods, jewelry, and precious metals. A reported 20 additional multinationals have shown interest in operating alongside Apple, Inc which has committed to develop a regional distribution center at the SILZ
- Home to the recently launched Saudi Cloud Computing Economic Zone
Jeddah, Saudi Arabia’s Second Largest City
- Serves as headquarters of Saudi Arabian Airlines (Saudia), the nation’s air carrier.
- Jeddah Islamic Port, with two container terminals operated by DP World and Red Sea Gateway Terminal, it is the busiest commercial port in Saudi Arabia, handling about 43 percent of the Saudi sea imports. It serves as a strategic hub connecting global East-West cargo trade. Plans are underway to improve and modernize the terminals.
- The Saudi Ports Authority is developing an integrated logistics area consisting of shared modular warehouses, single warehouses, large yards, and on-demand warehouses for re-export as well as subsidiary services.
- The Industrial Cities Authority recently announced its intention to build 14 new high-tech smart warehouses in Jeddah that will be operated based on a public-private partnership model.
- Active industrial cities include Jeddah 3rd Industrial City and Jeddah Air Cargo Village.
KAEC, an SEZ and Home to the World’s Most Efficient Port, Biggest Shipping Lanes
- Unique geostrategic location, at the heart of the Red Sea and close to European and African markets
- Home to Industrial Valley, the main industrial and logistics hub on the Red Sea; its advanced infrastructure, connection to regional/international markets via highspeed railway, highway network, road, and sea have attracted 115 companies in electronic light manufacturing, pharmaceuticals, MedTech and Logistics to establish a presence. They include Pfizer, Mars, Toys “R” Us, Johnson Controls, Alstom, Sanofi, and Safeway.
- Home to the region’s first end-to-end EV and automotive cluster (Volvo, Lucid, Renault Trucks)
- King Abdullah Port, launched in 2014, is the first Middle East port to be owned, developed and operated by the private sector. Once completed, the port will be equipped to handle 25 million TEU, up from 15 million TEU and 25 million tons of bulk cargo annually.
Who Should Join the Mission?
The Kingdom is looking for partners to invest in warehousing and fulfillment centers, manufacturing and assembly centers, staging and testing centers, and maintenance, repair, and re-export centers. Opportunities for the private sector include the development of ports, airports, rail, and road infrastructure projects, as well as construction of new facilities including cargo terminals, customs bonded zones, industrial clusters, new shipping lanes, and expanded airport and seaport capacity and related technologies and services.
- Digital solutions for supply chain planning, transportation and warehouse management, security/cybersecurity
- Technologies related to green logistics/green warehouses, circular and sustainable supply chains, feeder vessel connectivity, cold chain logistics
- Smart logistics solution based on IoT and next generation robotics for future supply chain design
- AI, IoT, blockchain applications for operational efficiency, optimization of inventory management, streamlining of transportation processes, automation of ports and logistics centers
- Robotics for B2C facilities (warehousing, transportation)
- Infrastructure development for ports, airports/air cargo, e-commerce
- Innovative cold-chain packaging and optimized infrastructure
- Freight tech (fleet management; freight procurement; digital freight forwarding)
- Warehousing tech (augmented reality; sustainable packaging; warehouse automation; fulfilment)
- Last mile delivery (autonomous delivery; ultrafast delivery services; reverse logistics; drones)
Mission Fees:
- $2,000 per company representative (Council members); $1,000 for second mission participant
- $3,000 per company representative (Council non-members); $1,500 for second mission participant
The Mission Fee Includes:
- Private briefing in Riyadh on doing business in the logistics sector (legal aspects, perspectives from U.S. companies doing business in the Kingdom)
- 1-on-1 meetings with potential Saudi business partners, end users
- Group visits to relevant Saudi Government agencies
- Group ground transportation to meetings in all locations
- Saudi business visa facilitation service
- Assistance with follow-ups for 3 months post-mission without charge
Expenses for air travel, lodging, incidentals, and meals will be the responsibility of each mission participant.
- Mission Application Deadline: September 1, 2023
For questions, please contact Ana Carmen Neboisa, Vice President, at anacarmen@ussaudi.org
Why Join the U.S.-Saudi Business Council Mission?
For the past 30 years, the Council has introduced hundreds of U.S. companies to Saudi Arabia via more than 50 business development missions to the Kingdom leading to hundreds of long term business partnerships. Below is a testimonial from our mission to the Future Projects Forum, May 21-23, 2023:
“The Future Project Forum and our visits to high-level end-users exceeded our expectations. The coordination and attention to detail from your team made everything seamless and allowed us to focus on building relationships and exploring opportunities. We had successful meetings and promising leads that we are following up on, multiple of them have turned out to be the right companies to work with. We are hoping to sign deals with some of them… I also wanted to express my gratitude for the valuable insights and guidance provided by you. Your knowledge of the local market was invaluable, and we felt supported every step of the way. Thank you once again for your unwavering support and for making this trip such a memorable success. We are genuinely excited about the possibilities that lie ahead and look forward to future collaborations.” – Network Optix
Saudi Transportation Sector Summary
- Aviation sector: currently consisting of 28 airports; increase cargo capacity to more than 4.5 million tons per year, and the number of transit passengers to 330 million. Offer 250 international destinations. All by 2030.
- Environmental Sustainability: goals involve the reduction of fuel consumption by 25 percent by 2030. The Saudi transport sector has witnessed the fastest reduction in CO2 emissions between 2016-2021 (23.7 percent decrease per capita compared to a 7.6 percent decline among G20 economies). One of the key components of reducing the Kingdom’s CO2 emissions is to shift new car sales to electric vehicles (EVs), with a target of making 30 percent of all vehicles in Riyadh EVs by 2030.
- Maritime sector: currently consisting of 10 ports of which three are among 100 largest ports in the world; increase its container capacity to reach 40 million annually up from 20 million. Seven shipping services, linking the Kingdom to 43 international ports, were approved in 2023; 17 international maritime lines launched in 2021.
- Rail sector: expected to grow its network of passenger and freight services from 5,300 kilometers to 8,080 kilometers. It includes the Land Bridge, a 1,300 kilometer line that will connect the Kingdom’s ports on the Arabian Gulf with the Red Sea, transport over 3 million passengers and 50 million tons of freight annually.
- Roadway systems: to be expanded via inter-urban freight and high-speed railways, urban metro systems, and bus networks that will cover over 200 cities and will serve more than six million passengers annually.
- SEZs: planned near transportation hubs, they aim to create clusters of light industries (biopharma, medical devices, car assembly, consumer goods), food, shipbuilding and marine industries, metals conversion, and e-commerce. Five SEZs will be launched in addition to five launched in 2022/2023.
- The National Transport and Logistics Strategy: all-encompassing plan that incorporates the development of infrastructure, human and technical capabilities, the launch of logistics zones, the implementation of advanced operating models, and the fostering of public-private partnerships.
- The National Industrial Development and Logistics Program (NIDLP): aims to build the country’s industrial and logistical capabilities and position it as a global leader in the industry. NIDLP earmarked $36 billion for a mix of government and private spending across a range of logistics development projects.
- Global Supply Chain Resilience Initiative (GSCRI): launched by the Ministry of Investment, it will disburse $2.7 billion of incentives to support global investors interested in incorporating Saudi Arabia into their supply chains.
- Public Investment Fund (PIF)-owned companies Tabadul and Elm have played a leading role in developing digital solutions for the logistics sector.
- The Saudi Industrial Development Fund, one of the key financial enablers of the NIDLP program, offers soft financing up to 75 percent of project costs for third-party logistics services, port handling services, and cargo-related projects. SIDF provides specialized financing programs including “Tanafusiya” which stimulates production efficiency in the industrial and logistics sectors through new digital and 5G technologies and “Tawteen” which aims to increase the local content and localization opportunities for supply chains.
For more details and a logistics sector master plan, please visit https://lpi.logisti.sa/en
© 2023 — U.S.-Saudi Arabian Business Council | Web Design by Advanced Technical Solutions