Image: Crown Prince and Prime Minister Mohammed bin Salman
Crown Prince Mohammed bin Salman has launched an extensive master plan aimed at positioning Saudi Arabia as a pivotal global logistics hub. The plan, which forms a crucial part of the National Transport and Logistics Strategy (NTLS), seeks to revolutionize the Kingdom’s logistical sector infrastructure and solidify its role as a premier investment destination.
The primary objectives of the master plan are to bolster the local economy through enhanced logistical capabilities and to establish Saudi Arabia as a central player in international trade networks and supply chains. With its strategic geographic location bridging Asia, Europe, and Africa, the Kingdom is poised to capitalize on its unique position. Crown Prince Mohammed bin Salman highlighted that this initiative is part of a broader series of measures to strengthen the economy and cultivate collaborations across the private sector.
The core of the plan revolves around the creation of 59 logistics centers, collectively covering an impressive 100 million square meters. These centers will be strategically distributed throughout the country, with 12 set for the Riyadh region, another 12 for the Makkah region, 17 designated for the Eastern Province, and the remaining 18 to be spread across various other parts of the Kingdom. As of now, 21 of these centers are already in various stages of development, all slated for completion by 2030.
Among the central benefits offered by these centers is the facilitation of streamlined exports for local industries and the strengthening of e-commerce by establishing swift connections between logistics and distribution centers across different regions and cities within the Kingdom. This will not only enhance traceability but also expedite the process of obtaining logistics licenses.
The recent introduction of the unified logistics license, along with the licensing of more than 1,500 local, regional, and international logistics companies, has further bolstered Saudi Arabia’s commitment to enhancing its logistics services. The collaborative Fasah initiative, an integrated e-system developed in conjunction with Saudi customs and relevant government bodies, has also been instrumental in this effort.
Undoubtedly, the logistics services sector forms a critical pillar of Saudi Arabia’s economic diversification strategy. With ongoing initiatives and substantial advancements, the sector is poised to significantly contribute to the Kingdom’s economic growth and development. The Ministry of Transport and Logistics remains dedicated to nurturing this growth by not only expanding investment opportunities but also fostering strong partnerships with the private sector.
