According to latest report ( Saudi Freight and Logistics Market – Growth, Trends, and Forecast (2019 – 2024), the Saudi Arabia freight and logistics market is estimated to be valued at USD 22.95 billion and is estimated to grow at a CAGR of 7.35% during the forecast period.
- The Saudi Arabian freight and logistics industry is a large and dynamic industry, strongly supported by state-led investments in rail, maritime, road, logistics, and airport infrastructures. Economic growth, population maturation, and rapid urbanization are the factors driving the Saudi Arabian government to invest in the massive expansion of the country’s transportation networks.
- In January 2019, the former Saudi Arabian energy minister Khalid al-Falih announced that the country is raising USD 427 billion in private sector investments, which may include roughly USD 36 billion for logistics infrastructure. The investment may be used to develop Saudi Arabia into a gateway for the trade supply chains of Africa, Asia, and Europe.
- Saudi Arabia is determined to broaden the role of the private sector to realise the Kingdom’s Vision 2030, as it pushes to diversify its economy. Private entities are being encouraged to collaborate with the government, as they develop the country’s transport infrastructure. Partnership is being sought for the operation of seaports, airports, and their related supply chains. Public-private partnerships (PPP) are being pursued to fund several key schemes, while a number of the country’s publicly operated transportation facilities are being prepared for full privatization.
- Technology is improving the security, transparency, and control over the import-export process in the country. Currently, importers track the status and progress of their shipments in real time. Customs brokers receive automated notifications on their mobiles about the status of their shipments and are prompted to create their declarations as soon as the shipping manifest is available online, prior to ship arrival.