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As the kingdom pursues ambitious plans to transform itself into a global transport hub by 2030, Saudi Arabia has announced plans to invest more than 1 trillion Saudi Riyal (SR), or $267 billion, in its logistics sector.
Speaking at the inaugural Global Logistics Forum in Riyadh, Transport Minister Saleh bin Nasser Al-Jasser revealed that £160 billion has already been deployed, yielding significant improvements in the country’s logistics capabilities.
Between 2018 and 2023, the kingdom leapt from 55th to 38th in the World Bank’s Logistics Performance Index. Between 2019 and 2022, Saudi Arabia also climbed 14 spots from 27th to 13th in the International Air Transport Association’s Global Connectivity Index.
Saudi Arabia holds a uniquely strategic position geographically, at the crossroads between Asia, Europe, and Africa. Officials emphasised that the kingdom’s location allows access to more than 40% of global GDP within a six-hour reach.
This massive investment programme, launched under Crown Prince Mohammed bin Salman’s Vision 2030 initiative, aims to leverage this connectivity.
“These routes, which spanned continents, carried not only goods but also ideas and cultures that shaped civilisations,” Al-Jasser told delegates, drawing parallels with historical trade routes such as the Incense Road and Silk Road that once traversed the region.
According to Asma Al-Otaibi, director of the project management office at the Transport Ministry, the programme has attracted significant private sector participation, with approximately 35% of investments coming from private sources.
Several major deals were announced at the forum, including Agility’s £200 million expansion of its Riyadh logistics parks, which will add 100,000 square metres of premium warehousing space. The Kuwait-based firm is also investing £488 million in a new logistics complex near Jeddah.
Regarding sustainability officials noted that the national rail network had eliminated the equivalent of 1 million lorry journeys from Saudi roads last year, significantly reducing carbon emissions.
Key developments include the new King Salman International Airport, which signed a memorandum of understanding with partners to establish an e-commerce and distribution hub aimed at strengthening logistics ties between China and Saudi Arabia.
The ambitious programme comes as global logistics stands at what Al-Jasser called a “critical juncture”, with current disruptions highlighting the need for secure and efficient supply chains.
