Saudi Arabia’s Ambitious Logistics Investment Plans of 6 billion Riyals

In a strategic move aimed at bolstering its position as a global logistics powerhouse, Saudi Arabia has announced a substantial investment of 6 billion Riyals (1.6 billion USD) in the development of nine logistic zones along the Red Sea and Eastern Coast. This ambitious initiative is set to transform key ports into dynamic distribution hubs, with Jeddah Port leading the way.

Acquisition and Allocation of Logistic Zones

• The West Coast Ports have secured six logistic areas, while the General Ports Authority has designated three logistic zones in the Eastern region.
• The total investment surpasses 6 billion Riyals (1.6 billion USD), underscoring the magnitude of the endeavor.

Strategic Distribution and Investment

• The logistic zones will be strategically distributed, with five in Jeddah Islamic Port, three in King Abdulaziz Port in Dammam, and one in King Fahd Industrial Port in Yanbu.
• This initiative aims to position Saudi Arabia as a global Logistic Hub, with the inauguration of the first logistic area slated for Jeddah Islamic Port.

Addressing Maritime Navigation Challenges

• Special focus will be given to overcoming challenges in maritime navigation in the Red Sea.
• Immediate solutions will be implemented to address operational performance issues at King Abdulaziz Port in Dammam, arising from a surge in ship traffic and container volumes.

Economic Development and Job Creation

• The logistic zones are expected to boost investment attractiveness and generate new job opportunities.
• Aligned with the national strategy for transport and logistic services, this initiative aligns with Saudi Vision 2030’s goal of establishing the kingdom as a global logistics center.

Diverse Goods and Advanced Services

• The zones will accommodate a wide range of goods, including cars, building materials, industrial products, and consumer goods.
• Advanced infrastructure and services such as equipped warehouses and storage yards will be provided to meet the diverse needs of businesses.

Contributions to International Standing

• These logistic zones are poised to elevate Saudi Arabia’s standing in international logistics indicators.
• By enhancing the investment appeal of Saudi ports and fostering economic development, they will play a pivotal role in the kingdom’s growth trajectory.

With these ambitious plans, Saudi Arabia is poised to emerge as a key player in the global logistics landscape, facilitating trade and driving economic growth in the region and beyond.