Crown Prince Mohammed bin Salman of Saudi Arabia inaugurated a comprehensive master plan on August 27, aimed at fostering the development of logistical centers within the nation.
The initiative is an integral component of Saudi Arabia’s broader endeavors to enhance economic diversity, according to the Saudi Press Agency.
“The logistics services sector represents one of the promising pillars of economic diversification and development in the kingdom. It is currently witnessing many important initiatives and major developments aimed at developing the sector and expanding its economic and developmental contributions,” SPA said on Sunday.
“The Ministry of Transport and Logistics seeks to develop the logistics industry, enhance the export strategy, expand investment opportunities and strike partnerships with the private sector.”
These logistics centers are poised to serve as conduits for the seamless exportation of Saudi products, streamline e-commerce operations by expediting connections between logistics and distribution hubs, ensure heightened traceability, and streamline the issuance of logistics licenses.
KSA plan to develop 59 logistics centres by 2030
The Saudi Press Agency (SPA) reported that the blueprint is expected to encompass 59 logistics centers spanning a collective area of over 100 million square meters throughout the nation, serving as a key component of the broader National Transport and Logistics Strategy.
The Master Plan for Logistics Centers includes:
- 59 centers covering over 100 million square meters in total
- 12 centers designated for the Riyadh Region
- 12 centers allocated for the Makkah Region
- 17 centers intended for the Eastern Region
- 18 centers distributed across other areas of the Kingdom
“There are currently 21 centers being worked on. All centers will be completed by 2030,” SPA said.
Leveraging its enviable geographical position at the crossroads of Asia, Europe, and Africa, Saudi Arabia envisions transitioning into a global logistics powerhouse, thereby fostering increased employment opportunities and augmenting its economic prowess.
The comprehensive approach to this transformation entails the development of ports, rail networks, and road infrastructure. This shift is anticipated to elevate the contribution of the transport and logistics sector to the nation’s GDP from 6% to an impressive 10%.
The crown prince’s vision forms an integral part of the broader Vision 2030 economic diversification initiative. In the pursuit of this endeavor, Saudi Arabia’s national transport and logistics strategy strives to augment the sector’s annual non-oil revenues to approximately $12 billion by 2030.
Saudi Arabia’s Second National Airline
Parallel to the transformative efforts including logistics centers, Riyadh Air, the kingdom’s second national airline Riyadh Air is anticipated to inaugurate operations by 2025, serving over 100 global destinations by 2030.
This venture is projected to inject a substantial $20 billion into Saudi Arabia’s non-oil GDP and spawn over 200,000 job opportunities directly and indirectly. Furthermore, the future of Saudi Arabia’s aviation sector holds remarkable promise, with the transformation of Riyadh Airport into an expansive aviation hub boasting six parallel runways and the capacity to accommodate up to 120 million travelers by 2030.
Job creation
Named King Salman International Airport, the project is set to generate 103,000 direct and indirect jobs, cater to 185 million travelers, and manage a staggering 3.5 million tons of cargo by 2050. The unveiling of this master plan signals a resolute step towards Saudi Arabia’s meteoric rise as a global logistical and economic powerhouse.