NEW SPEAKER: Business Opportunities in Saudi Arabia’s Logistics Sector

Notice: Due to unforeseen circumstances, the webinar Business Opportunities in Saudi Arabia’s Logistics Sector, scheduled for Tuesday, 10:00 AM EST, has been postponed until a later date.

We apologize for the inconvenience and you will receive information on the new date shortly. Thank you for your understanding.

Join us for an executive presentation on Saudi Arabia’s logistics sector with a focus on integrated logistics bonded zones (ILBZs) around airports, the latest developments in the Kingdom’s air cargo and logistics sector, and related business and investment opportunities.

Loay Mashabi
Deputy Minister for Logistics Services
Ministry of Transport and Logistics Services

Moderator: H. Delano Roosevelt
President and CEO
U.S.-Saudi Business Council

Saudi Arabia launched its National Transport and Logistics Strategy in 2021. This program aims to position the Kingdom as a global logistics hub connecting three continents. It covers areas including the development of the infrastructure, the launch of platforms, the implementation of advanced operating models and systems, and the establishment of partnerships between the government and the private sector.

Creating and activating special zones geared towards logistics in the proximity of the Kingdom’s major airports, and in particular the establishment and activation of the Integrated Logistics Bonded Zones (ILBZs), is an integral facet towards achieving both the targets of the National Transport and Logistics Strategy as well as the National Aviation Sector Strategy (NASS), launched by the General Authority of Civil Aviation (GACA) in 2022. NASS is a roadmap that aims to transform Saudi Arabia into the 7th largest passenger market worldwide, 5th largest global passenger connecting hub, the 1st regional cargo hub, and capture 4.5 million tons of air freight. Logistics zones are being created to enable cargo and logistics operators to benefit from fiscal, regulatory, and locational benefits.

GACA has recently launched the regulatory framework for Saudi Arabia’s first ILBZ in Riyadh. This 3 million-square-meter zone is strategically located to serve more than 650 million customers across Africa, Asia, and Europe, linking them through King Khalid International Airport in Riyadh, domestic and regional markets, railway network, and dry ports surrounding the airport. The zone will offer access to aviation facilities, cargo handling, government-sponsored training programs, and advanced cargo-tracking technology, alongside a Government Services Office in the ILBZ to serve as a one-stop-shop to obtain any government services for the investors. Incentives that will be offered to companies to establish operations at its site adjacent to the international airport include:

• A 50-year tax relief period;
• Suspension of customs duties and import restrictions;
• 100% foreign business ownership;
• No restriction on capital repatriation;
• Relaxed labor nationalization mandate;
• Ease of access to permits and certifications.

GACA has also released information on ILBZ companies, employment, implementation regulations, tax rules, and an operating manual.

The ILBZ in Riyadh is on track to be the first zone of its kind in the Kingdom and will help achieve the logistics sector’s aspirations through its unique objectives such as offering an unrivalled business environment for foreign companies, providing a regulatory environment that is more conducive to setting up and operating businesses in Saudi Arabia, attracting investments to help develop local talent, transferring knowledge and supporting local content, as well as setting the standard in leading the advancement of logistical zones.

For more information about the webinar please contact Robert Murden, Research Analyst at rmurden@ussaudi.org