Saudi Arabia reveals master plan to develop 59 logistics centres by 2030

Saudi Arabia to build 59 logistics centres to become a top global logistics hub. The competition date of this humongous project is estimated by the end of this decade. The development of the logistics structure will help the kingdom to further diversify its economy, witness more foreign investment in the country and also build connections with local, regional, and international trade networks and global supply chains. The planned centre is to invest over 500 billion riyals to expand the transport sector.

The spokesperson highlighted that the development of the logistics centre will boost the partnership with the private sector, increase the opportunity to create job opportunities and make Saudi Arabia a global logistics hub, given its geographical locations among Asia, Europe and Africa, the three important continents.

In the master plan, it clearly shows that the total area for 59 centres is more than 100 million square metres. Currently, 21 are being worked on, but all will be completed by 2030. After the completion, the 59 centres will allow Saudi Industries to export their products efficiently across the globe.

The kingdom is planning for more than 300 projects in transport and logistics through partnerships with the local and international private sector and the broader plan includes introducing new airlines, expanding airports, extending the railway network and increasing the port’s capacity. The crucial goal behind this whole strategy is to upsurge the contribution of the transport and logistics sector from 6% to 10%. Saudi Arabia wants to show itself as more than an oil economy and this development will certainly lift its image to the world.

The Ministry of Transport and Logistics seeks to advance the logistics industry, enhance the export policy, grow investment opportunities and strike partnerships with the private sector. The Saudi economy expanded 8.7% in 2022, the highest annual growth rate among the world’s 20 biggest economies, driven by a rise in oil prices and the strong performance of its non-oil private sector.