Saudi Arabia unveils master plan for logistics centres

The kingdom will build 59 logistics centres with a total area of more than 100 million square meters

by Gulf Business

August 28, 2023

Image courtesy: Saudi Press Agency/ X

Saudi Arabia’s Crown Prince Mohammed bin Salman has unveiled the master plan for logistics centres, which aims to develop the infrastructure of the kingdom’s logistical sector, diversify the local economy, and advance the country’s status as a global logistical hub, according to state news agency Saudi Press Agency (SPA).

Under the master plan, Saudi Arabia will build 59 logistics centres with a total area of more than 100 million square meters across the kingdom as part of its broader National Transport and Logistics Strategy.

The Saudi government plans to develop 12 logistics centres in Riyadh, 12 in Makkah, 17 in the Eastern region, and 18 distributed across other parts of the country.

“There are currently 21 centres being worked on. All centres will be completed by 2030,” SPA said.

Saudi Arabia seeks to develop its logistics sector to support the economy, increase connections between the international trade networks and global supply chains and boost the partnership with the private sector.

HRH Crown Prince Launches Master Plan for Logistics Centres to Make Kingdom a Global Logistical Hub.https://t.co/WEpvGiyLir #SPAGOV pic.twitter.com/lNiXxB8UTY

— SPAENG (@Spa_Eng) August 27, 2023

The strategy will leverage country’s geographical location among three important continents – Asia, Europe and Africa – to make the kingdom a global logistical hub and create more job opportunities.

Making Saudi Arabia a global logistics hub, which includes the development of ports, rail and road networks, is expected to increase the transport and logistics sector’s contribution to gross domestic product (GDP) to 10 per cent from 6 per cent.

The centres will enable local industries to export Saudi products with high efficiency, support e-commerce by facilitating a rapid link between logistics and distribution centres in the country, provide high traceability and facilitate the issuance of logistics activity licences.

Saudi Arabia’s logistics sector

Meanwhile, Saudi Arabia’s logistics services sector is one of the promising pillars of the Vision 2030 economic diversification plan.

Over the years, the kingdom has implemented several initiatives and made significant developments aimed at developing the logistics sector while expanding its financial, economic and developmental contributions.

Saudi Arabia’s national transport and logistics strategy seeks to advance the sector’s contribution to the country’s annual non-oil revenues to around $12bn by 2030. Under the initiative, Saudi Arabia’s second national airline – Riyadh Air – will start flights in 2025 and serve more than 100 destinations worldwide by 2030.

The carrier is expected to add $20bn to Saudi Arabia’s non-oil GDP growth and create more than 200,000 jobs both directly and indirectly.

In November 2022, the kingdom also unveiled plans to transform Riyadh Airport into a massive aviation hub with six parallel runways and designed to accommodate up to 120 million travellers by 2030. King Salman International Airport will create 103,000 direct and indirect jobs, handle 185 million travellers and process 3.5 million tonnes of cargo by 2050.