Transportation & Logistics

Placed in a strategic location near the crossroads of three continents and oceans and adjacent to international shipping and air travel routes, Saudi Arabia holds vast potential to be a global hub for transportation & logistics. By 2030, Saudi Arabia plans achieve this status by quadrupling the country’s annual container throughput to 40 million (TEU), doubling air cargo capacity to 4.5 million tonnes, building 100 million square meters of new logistics centers, and developing new ports, airports, and a 3 million square meter Special Integrated Logistics Zone. In recent years, the Council has organized forums in collaboration with key Saudi entities such as the General Authority of Civil Aviation (GACA) and the Ministry of Transport and Logistic Services (MOT) to introduce American companies to the diverse opportunities available in the Kingdom’s transportation and logistics sectors.

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Overview

Saudi Arabia’s transport and logistics sector has experienced significant growth, primarily attributed to the Vision 2030 economic diversification initiative. This strategic plan aims to position the country as a pivotal regional and international hub for logistics and aviation, particularly in the domains of tourism and transportation. A notable milestone in this trajectory was the Saudi Arabian Government’s announcement in 2021, revealing plans to invest a substantial $147 billion in transport and logistics by the year 2030.

Adding to this momentum, Saudi Arabia’s bold plans to develop its logistics sector stem from being the only country to have three major maritime straits, which contribute to approximately 30 percent of global seaborne trade passing its boundaries while positioned at the center of Asian and African trade and Europe’s trade to Asia. At its core, the Saudi logistics sector is the economy’s conduit that enables the flow of commerce and is a chief facilitator of Vision 2030’s goals.

Consequently, the government set ambitious goals that will see the sector’s contribution to GDP climb from 6 percent to 10 percent by the end of the decade. It will also fuel business growth, expand investments, and increase the sector’s non-oil revenues to SAR45 billion ($12 billion) annually by 2030.