Saudi Arabia’s bold plans to develop its logistics sector stems from being the only country to have three major maritime straits, which contributes 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 a chief facilitator of Vision 2030’s goals. Consequently, that 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.
Key initiatives such as the National Industrial Development and Logistics Program (NIDLP), the National Transport and Logistics Strategy, and the Global Supply Chain Resilience Initiative (GSCRI), are spearheading the accelerated development of the logistics sector. NIDLP earmarked SAR135 billion ($36 billion) for a mix of government and private spending across a range of logistics development projects. The National Transport and Logistics Strategy is an all-encompassing plan that incorporates the development of infrastructure, the launch of a stated 59 logistics zones, the implementation of advanced operating models, and the fostering of growing partnerships between the public and private sector. The GSCRI will utilize a SAR10 billion ($2.7 billion) budget to provide financial and non-financial aid for global investors interested in incorporating Saudi Arabia into their supply chains.
