Saudi aims for $7.7bln in logistics industry investments

Saudi Arabia is pushing ahead with the construction of 19 logistic services zones worth nearly 29 billion Saudi riyals ($7.7 billion) in investment value in partnership with the private sector, the Kingdom’s Transport and Logistics Services has said. 

Saleh Al-Jasser said the world’s largest oil exporter has already established several such zones at key seaports and has invited the private sector for similar projects.

Speaking at a 2023 budget seminar in Riyadh on Sunday, Jasser Riyadh aims to ‘create a solid logistics base’ to become one of the largest hubs in this field in line with the country’s economic diversification scheme ‘Vision2030.’

The Arabic language daily Al-Madina and other Saudi dailies quoted Jasser as saying at the conference that heavy investment in logistics and transport in the Kingdom has largely expanded the sector and boosted its contribution to GDP to 16 percent in 2021.

“We are now working to establish 19 logistics zones in Riyadh, Jeddah, King Abdullah Economic City and other areas in the Kingdom…these projects provide investment opportunities to the private sector worth nearly 29 billion riyals,” the Minister said.

He told the seminar that the Ministry issued permits for more than 1,500 local and foreign logistics companies in 2022, adding: ”The Kingdom is pursuing plans to construct several logistics zones to support industry, tourism and trade.”

In a related report, Saudi financial news portal Argaam reported on Sunday that the Kingdom is targeting to build 59 logistics zones as part of its development plan for air, marine and road transport.