Saudi Arabia to invest $267bn in logistics to become global hub by 2030: minister

Saudi Arabia to invest $267bn in logistics to become global hub by 2030: minister
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Plan for its transport and logistics, launched by Crown Prince Mohammed bin Salman, aims to strengthen Saudi Arabia’s position as a global logistics hub connecting three continents. AN Photo
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Updated 14 October 2024
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Saudi Arabia to invest $267bn in logistics to become global hub by 2030: minister

Saudi Arabia to invest $267bn in logistics to become global hub by 2030: minister
  • Saudi Minister of Transport and Logistic Services Saleh bin Nasser Al-Jasser said that SR200 billion of the total amount has already been deployed
  • Al-Jasser said there is no better time to hold this forum as the global logistics industry stands at a critical juncture

RIYADH: Saudi Arabia is set to invest over SR1 trillion ($267 billion) in its logistics sector, underlining its ambition to become a global hub by 2030, according to a senior official. 

Speaking at the inaugural Global Logistics Forum 2024, which began on Oct. 13 in Riyadh, Saudi Minister of Transport and Logistics Services Saleh bin Nasser Al-Jasser said SR200 billion of the total amount has already been deployed.  

“These investments have translated into leapfrogs in the Saudi logistics sector, leading us to rise in global rankings, jumping 17 ranks in the Logistics Performance Index issued by the World Bank and 14 places in the Global Connectivity Index of the International Air Transport Association,” he said.  

The country’s transport and logistics plan, launched by Crown Prince Mohammed bin Salman, aims to strengthen Saudi Arabia’s position as a global logistics hub connecting three continents.  

This initiative, part of the broader Vision 2030 program, focuses on modernizing transportation systems, enhancing integration within the logistics network, and supporting the Kingdom’s overall development goals. 

In his speech, Al-Jasser said there is no better time to hold this forum as the global logistics industry stands at a critical juncture. 

“Current disruptions highlight the fundamental needs to ensure the safety and security of the supply chain and the seamless functioning of the backbone of global commerce, so economies thrive, goods get delivered, and people are connected,” he said. 

The minister noted how logistics have impacted his own life, from delivering his favorite cup of coffee to his home to transporting vaccines to remote, otherwise unreachable areas. 

Al-Jasser said that over the next two days, the forum will address the challenges facing the sector and shape a sustainable future that promotes prosperity for all. 

“Where could it be better to hold the global logistics forum than at the crossroads of Asia, Europe, and Africa, the heart of global connectivity, where more than 40 percent of the world’s gross domestic product is reached within six hours,” he said. 

Al-Jasser also highlighted Saudi Arabia’s historical significance as a trade hub, referencing ancient networks like the Incense Road, the Spice Road, and the sea route of the Silk Road.   

“These routes, which spanned continents, carried not only goods but also ideas and cultures that shaped civilizations. Now, once again, we are at the forefront of global trade through cutting-edge infrastructure, such as King Salman International Airport, state-of-the-art seaports, and a robust rail network,” Al-Jasser added.  

He also emphasized the Kingdom’s strides in sustainability through the Saudi Green Initiative. 

“Last year alone, using the Saudi rail network, we eliminated the equivalent of 1 million truck journeys from our roads, drastically reducing carbon emissions,” he said.  

Al-Jasser noted that advancements in technologies such as artificial intelligence, blockchain, and smart infrastructure are reforming the global supply chain, reducing costs, increasing speed, and protecting the environment.  

“Saudi Arabia has invested approximately 35 percent of its investments and funds in the private sector to achieve this ambitious goal,” Asma Al-Otaibi, director of the project management office at the Ministry of Transport and Logistic Services, told Arab News. 

She added: “This sector is one of the key enablers of other sectors, such as healthcare. His Royal Highness launched the National Transport and Logistics Strategy in 2021.” 

Al-Otaibi also explained that Saudi Arabia’s national strategy for the transport and logistics sector is focused on attracting and enabling private sector investments, both locally and internationally, to drive growth and development. 

“One of these measures is the incentive packages, where we incentivize the private sector by reducing government fees or giving some funds to private sector (companies) who invest in initiatives that help in green mobility, the Green Initiative, and other things that the ministry is working on,” she concluded. 

Major deals  

Following Al-Jasser’s speech, several agreements were signed, including a maritime connectivity cooperation agreement between the Kingdom’s Transport General Authority and the Egyptian Ministry of Transport.  

The King Salman International Airport Development Co., a Public Investment Fund company, has signed an MoU with ewpartners, a private investment and strategic alliances firm.

The partnership aims to leverage Saudi Arabia’s strategic location to boost logistics operations and establish an e-commerce and distribution hub, in line with the National Transport and Logistics Strategy and Vision 2030, the Saudi Press Agency reported. 

The logistics center at King Salman International Airport will strengthen distribution ties between China and Saudi Arabia, positioning the Kingdom as a key regional air freight hub, SPA noted. 

Marco Mejia, acting CEO of KSIADC, said: “Through our collaboration with ewpartners, we aim to enhance the Kingdom’s logistical infrastructure, increase operational efficiency, and create new opportunities that contribute to economic growth in the Kingdom and the region.” 

Jerry Li, founder and managing partner of ewpartners, highlighted the airport’s location and regional commercial capabilities as drivers of growth in logistics and e-commerce. 

SPA added that the collaboration will focus on enhancing infrastructure, digital services, advanced manufacturing, and logistics. 

Additionally, the Mediterranean Shipping Co. and King Abdullah Port inked a contract for a temperature-controlled warehouse at King Abdullah Port.  

Matarat Holding and the Ministry of Transport signed an agreement for 24 seats in the Custodian of the Two Holy Mosques Scholarship Program. ALTANFEETHI and the Ministry of Transport and Logistics Services signed a similar agreement for eight seats, while Saudi Arabia Railways secured 30 seats under the program.   

The Saudi Logistics Academy, along with the Ministry of Human Resources and Social Development, launched an initiative to train 7,800 individuals in transport and logistics services through 60 different training programs and diplomas. 

On the sidelines of the event, Agility, a global supply chain services provider, announced the final phase of its expansion at Agility Logistics Parks in Riyadh. 

The SR250 million project will add 100,000 sq. meters of Class A warehousing, bringing the total space to 551,368 sq. meters. The first phase is expected to open in the first quarter of 2025, creating nearly 300 Saudi jobs. 

Agility is also investing SR611 million to build a third logistics complex near Jeddah, according to a press release. 

Michel Saab, global CEO of Agility Logistics Parks, said the Riyadh expansion is more than just increasing capacity — it represents a significant contribution to Saudi Arabia’s logistics market and will attract global firms to grow in the Kingdom. 

“By building world-class warehousing, we are able to provide critical infrastructure that is helping to make the Kingdom a global and regional logistics hub,” he said. 

The Global Logistics Forum 2024, organized by the Ministry of Transport and Logistics Services and held under the patronage of King Salman, aims to redefine the global landscape of trade and supply chains.   

By bringing together ecosystem partners at the King Abdullah Financial District in Riyadh, this two-day forum seeks to enhance efficiency, resilience, sustainability, and profitability, ultimately fostering prosperity in an increasingly interconnected world. 

Amid challenges such as international tensions, economic instability, complex supply chains, and the growing impact of climate change, the logistics sector is at a pivotal moment.  

The forum aims to bolster international collaboration and drive growth in the logistics sector by showcasing the latest technologies and innovative solutions. 

This first edition of the Global Logistics Forum marks a pivotal event for the Ministry of Transport and Logistics Services as it seeks to revolutionize global trade and supply chains by enhancing efficiency and profitability.  


Saudi Arabia leads MENA startup funding in April with $158.5m  

Saudi Arabia leads MENA startup funding in April with $158.5m  
Updated 05 May 2025
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Saudi Arabia leads MENA startup funding in April with $158.5m  

Saudi Arabia leads MENA startup funding in April with $158.5m  

RIYADH: Saudi Arabia led startup funding across the Middle East and North Africa in April 2025, attracting $158.5 million across eight deals — accounting for more than two-thirds of the region’s total investment for the month. 

The Kingdom’s dominant performance was largely driven by iMENA Group’s $135 million pre-initial public offering round, placing it ahead of the UAE, which followed with $62 million raised across nine startups. 

In total, MENA startups secured $228.4 million in April through 26 deals, marking a 105 percent increase from March and nearly triple the amount raised in April 2024, according to Wamda’s monthly report.  

Notably, the month’s funding activity featured no debt financing.

“Interestingly, the absence of debt-financed deals in April highlights growing investor confidence in equity-based funding — a trend reflecting a healthier capital environment,” the report stated.  

Morocco ranked third regionally, raising $4 million across two startups, while Egypt lagged behind with just $1.5 million secured by four companies. 

Early-stage ventures led in deal volume, bringing in $49 million through 20 transactions. Late-stage activity was concentrated entirely in iMENA’s pre-IPO round. 

By sector, fintech remained the top draw for investors, attracting $44 million across seven transactions. Traveltech also gained momentum, driven by HRA Experience’s deal, while e-commerce startups raised $2.5 million across three deals. 

Software-as-a-service ventures made a comeback after a quiet first quarter, securing $1.8 million from three transactions.  

In terms of business models, business-to-business startups dominated, raising $180 million across 12 deals.  

Business-to-consumer ventures followed with $43 million from seven transactions, while six companies operating both B2B and B2C models accounted for the rest of the disclosed funding. 

Gender disparities in startup funding persisted in April. Female-led startups secured less than $500,000 in total, while male-founded ventures captured 97 percent of all disclosed capital. Startups co-founded by men and women raised an additional $6.5 million. 


Closing Bell: Saudi main index closes in green at 11,422 

Closing Bell: Saudi main index closes in green at 11,422 
Updated 05 May 2025
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Closing Bell: Saudi main index closes in green at 11,422 

Closing Bell: Saudi main index closes in green at 11,422 

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Monday, gaining 11.45 points, or 0.10 percent, to close at 11,422.95. 

The total trading turnover of the benchmark index was SR5.21 billion ($1.39 billion), as 153 stocks advanced, while 84 retreated. 

The Kingdom’s parallel market, Nomu, also rose, gaining 129.67 points, or 0.46 percent, to close at 28,142.99. This comes as 41 of the listed stocks advanced, while 33 retreated. 

The MSCI Tadawul Index increased by 4.27 points, or 0.29 percent, to close at 1,455.44. 

The best-performing stock was Mouwasat Medical Services Co., with its share price surging 9.97 percent to SR78.30. 

Other top performers included Fawaz Abdulaziz Alhokair Co., which saw its share price rise 9.92 percent to SR14.18, and Saudi Reinsurance Co., which posted a 9.71 percent gain to reach SR53.10. 

Umm Al Qura for Development and Construction Co. recorded the day’s steepest decline, with its share price slipping 3.47 percent to SR25.05.   

Sahara International Petrochemical Co. and Saudi Steel Pipe Co. also saw declines, with their shares dropping by 2.82 percent and 2.58 percent to SR17.90 and SR52.90, respectively.   

On the announcements front, Ades Holding Co. reported interim financial results for the first three months of the year, posting a net profit of SR196.6 million — a 6.3 percent decline compared to the previous quarter. It said that the drop in net profit reflects an increased ratio of depreciation and tax costs to revenue in this period.   

The company’s total comprehensive income saw a 45.7 percent quarter-on-quarter decrease in the first quarter of 2025 to reach SR170.8 million.  

Ades Holding Co.’s share price traded 0.94 percent lower on the main market during today’s session to reach SR14.78.   

In another announcement, Makkah Construction and Development Co. reported a 32.7 percent year-on-year increase in net profit for the same period, reaching SR150 million.   

The company credited the growth to higher revenues from the hotel and towers this quarter, driven by the inclusion of the last nine days of Ramadan, increased mall revenues, and gains from financial assets classified at fair value through profit or loss.   

Similarly, the company’s total comprehensive income rose to SR758 during the quarter, up from SR576 last year.   

The MCDC’s share price traded 1.5 percent higher to reach SR108.20. 


Saudi Arabia posts $15.6bn budget deficit in Q1 with resilient non-oil growth

Saudi Arabia posts $15.6bn budget deficit in Q1 with resilient non-oil growth
Updated 05 May 2025
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Saudi Arabia posts $15.6bn budget deficit in Q1 with resilient non-oil growth

Saudi Arabia posts $15.6bn budget deficit in Q1 with resilient non-oil growth

RIYADH: Saudi Arabia recorded a deficit of SR58.7 billion ($15.65 billion) in the first quarter of 2025, driven by declining oil revenues and increased spending to support Vision 2030 development initiatives, according to the Finance Ministry.

According to the quarterly budget performance report, total revenues reached SR263.61 billion, marking a 10.16 percent decline compared to the same period last year.

The drop is primarily attributed to reduced oil revenues, which fell 17.65 percent year on year to SR149.81 billion, driven by ongoing OPEC+ production cuts that curbed export volumes despite relatively steady global oil prices.

Oil income accounted for 56 percent of total government revenues, down from 62 percent in Q1 2024.

In contrast, non-oil revenues continued to grow modestly, rising 2.06 percent to SR113.81 billion, underpinned by structural economic reforms and the Kingdom’s diversification agenda under Vision 2030.

Taxation on goods and services remained the largest contributor to non-oil income, generating SR71.56 billion—up 2.37 percent year on year. Other non-oil revenue sources, including fees and investment returns, added SR25.41 billion, making up 22.3 percent of the non-oil total.

Total government expenditures in the quarter rose 5.39 percent year on year to SR322.32 billion. The increase reflects Saudi Arabia’s continued investment in strategic initiatives and priority development projects aligned with Vision 2030 goals.

Compensation for government employees remained the largest expenditure category, totaling SR146.09 billion—an annual increase of 6.24 percent—and accounting for 45.3 percent of total spending.

Expenditures on goods and services amounted to SR64.63 billion, or 20 percent of the quarterly total, while capital spending represented 8.6 percent. Other operational costs comprised 10.6 percent.

The first quarter deficit was entirely financed through debt instruments, pushing Saudi Arabia’s total public debt to SR1.33 trillion—up 19.08 percent from a year earlier.

Of this, 60 percent was sourced domestically, with the remainder attributed to external borrowing, in line with the Kingdom’s debt diversification strategy.

Despite the fiscal shortfall, the ministry noted that the quarterly figures remain consistent with the government’s 2025 budget plan. Revenues in the first quarter represent 22.3 percent of the full-year target, while expenditures account for 25 percent of the planned annual spend.

Looking ahead, Saudi Arabia’s fiscal outlook may receive a boost from higher oil output. OPEC+ recently announced plans to accelerate the unwinding of prior production cuts, including a June increase of 411,000 barrels per day. Combined with earlier boosts in April and May, the group plans to restore a total of 960,000 barrels per day—reversing 44 percent of the 2.2 million bpd reduction agreed upon in December 2024.


Saudi Aramco raises June oil prices for Asian markets

Saudi Aramco raises June oil prices for Asian markets
Updated 05 May 2025
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Saudi Aramco raises June oil prices for Asian markets

Saudi Aramco raises June oil prices for Asian markets

RIYADH: Saudi Aramco has increased its official selling price for crude oil destined for Asia in June, ending a two-month streak of price cuts, the company confirmed in an official statement on Sunday.

The state-owned oil giant raised the price of its benchmark Arab Light crude by $0.20, setting it at $1.40 per barrel above the average of Oman and Dubai crude prices.

The adjustment comes despite persistent downward pressure on global oil markets due to concerns over rising supply and a fragile demand outlook.

The move follows Saturday’s announcement from the OPEC+ alliance, which agreed to boost oil production for a second consecutive month. The group, which includes both OPEC members and key allies like Russia, plans to increase output by 411,000 barrels per day in June.

Market observers are now closely watching the outcome of the next OPEC+ meeting, scheduled for May 5, which will further clarify the group’s production strategy heading into summer.

Saudi Aramco prices its crude oil across five density-based grades: Super Light (greater than 40), Arab Extra Light (36-40), Arab Light (32-36), Arab Medium (29-32), and Arab Heavy (below 29).

The company’s monthly pricing decisions impact the cost of around 9 million barrels per day of crude exported to Asia and serve as a pricing benchmark for other major regional producers, including Iran, Kuwait, and Iraq.

In the North American market, Aramco set the May OSP for Arab Light at $3.40 per barrel above the Argus Sour Crude Index.

Aramco determines its OSPs based on market feedback from refiners and an evaluation of crude oil value changes over the past month, taking into account yields and product prices.


UAE, Kuwait, and Qatar sustain non-oil growth in April: S&P Global

UAE, Kuwait, and Qatar sustain non-oil growth in April: S&P Global
Updated 05 May 2025
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UAE, Kuwait, and Qatar sustain non-oil growth in April: S&P Global

UAE, Kuwait, and Qatar sustain non-oil growth in April: S&P Global

RIYADH: The non-oil private sectors of the UAE, Kuwait, and Qatar continued their expansion in April, supported by strong demand, improving output, and stable employment conditions, according to the latest Purchasing Managers’ Index surveys released by S&P Global.

In the UAE, the headline PMI held steady at 54 for a second consecutive month, reflecting continued momentum in the country’s non-oil economy. While output growth eased to a seven-month low, firms ramped up hiring at the fastest rate in nearly a year to manage capacity pressures. New orders surged, underpinned by the strongest international demand in five months.

This robust performance aligns with a wider regional trend of economic diversification, as Gulf nations—including Saudi Arabia—work to reduce their long-standing reliance on oil revenues.

“The April PMI results signaled a notable uptick in hiring activity across the non-oil private sector,” said David Owen, senior economist at S&P Global Market Intelligence.

“After several months of mild increases in payroll numbers, despite robust sales growth, job creation rose to its highest level in 11 months.”

Owen noted that the hiring push was largely aimed at easing backlogs, which, while still rising, did so at the slowest pace in six months. “That said, employment growth was still modest overall, adding to suggestions that some firms may be struggling to recruit,” he added.

Any PMI reading above 50 indicates expansion in the non-oil private sector, while a figure below 50 denotes contraction.

Business confidence in the UAE climbed to its highest level so far in 2025, as firms cited strong demand pipelines and positive expectations. Input purchases rose again in April, though at a slower pace than March, which had marked a 68-month high.

“Firms are hopeful that elevated demand levels and strong pipelines, as characterized by steeply rising backlogs, should propel activity higher in the coming months,” Owen said.

Despite increased purchasing and faster supplier delivery times, stock levels remained largely unchanged for the second consecutive month. Business optimism also rose for the third straight month in April.

In Dubai, operating conditions in the non-oil private sector improved at a slower pace due to weaker growth in new business inflows. Nonetheless, order books continued to expand sharply, driving strong overall business activity. Employment rebounded in April after a brief dip in March, as companies aimed to boost capacity. However, firms in Dubai expressed subdued confidence about future activity, with sentiment among the lowest on record.

Kuwait sees strongest output

Kuwait's non-oil private sector saw significant gains in April, with the country’s PMI rising to 54.2 from 52.3 in March—marking one of the sharpest expansions on record since the survey began in 2018.

“It was a bumper start to the second quarter of 2025 for non-oil companies in Kuwait, with a further influx of new orders leading companies to expand output at one of the sharpest rates since the survey began,” said Andrew Harker, economics director at S&P Global Market Intelligence.

The expansion was driven by robust new order growth, supported by competitive pricing and strategic marketing efforts. However, firms faced rising input costs that made it harder to maintain price stability.

While employment rose only marginally, the minimal hiring contributed to a further buildup in outstanding work.

“It remains to be seen, however, whether firms will be able to keep restricting selling prices in a scenario where input costs are rising sharply,” Harker noted. “The coming months will illustrate the extent to which companies are happy to see margins come under pressure in order to keep orders flowing in.”

Kuwaiti firms also reported a notable increase in export orders. Optimism about future output remained high, supported by competitive strategies, product development, and marketing.

Qatar growth slows slightly

Qatar’s non-oil sector saw a slight dip in overall momentum in April, with its PMI falling to 50.7 from 52 in March. Despite the decline, the index stayed above the neutral 50 mark for the 16th consecutive month, reflecting continued—if slower—growth.

Output among Qatari non-energy firms rose for the first time in 2025, but the sector faced a drop in new business and a cooling labor market.

“The PMI indicated continuing growth of the non-energy private sector economy at the start of the second quarter, but there was a loss of momentum owing mainly to a renewed reduction in new business and slower employment growth,” said Trevor Balchin, economics director at S&P Global Market Intelligence.

“The latest figure of 50.7 was the lowest in three months and below the long-run trend level of 52.3, as weaker demand offset an increase in total output.”

Growth was led by the manufacturing, services, and wholesale and retail sectors, while construction activity remained weak despite signs of stabilization.

Job creation remained positive across sectors, although April saw the slowest employment growth since August 2024.

“The employment component remained elevated in April, indicating further strong jobs growth. That said, there was evidence that the recent labor market boom was easing, with the rate of job creation down at an eight-month low,” Balchin said.

Wage growth also slowed to a five-month low but remained among the strongest since the survey’s inception in 2017.

Looking ahead, Qatari businesses maintained optimism for the year ahead, citing growth in real estate, infrastructure development, tourism, and a rising expatriate population as key drivers.