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Head of SAL to Asharq Al-Awsat: We Invest $399 Mn in Infrastructure

SAL facilities in Jeddah (Asharq AL-Awsat)
SAL facilities in Jeddah (Asharq AL-Awsat)
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Head of SAL to Asharq Al-Awsat: We Invest $399 Mn in Infrastructure

SAL facilities in Jeddah (Asharq AL-Awsat)
SAL facilities in Jeddah (Asharq AL-Awsat)

The Saudi Logistics Services (SAL) allocated $399 million worth of investments to implement a series of infrastructure projects by the end of 2027, announced CEO Faisal al-Beddah.

The investment aims to enhance the company's presence and position as a leading company in cargo handling, logistics services, and storage.

It also supports the efforts to establish the Kingdom as a global logistics hub and achieve the goals of Vision 2030.

Beddah told Asharq Al-Awsat that these investments align with the company's aspirations to handle 4.5 million tons of cargo through expansion plans for the company's stations at Riyadh and Jeddah airports until the end of 2027.

The company plans to develop its assets and facilities at the existing facilities in Jeddah, Riyadh, and Dammam.

Jeddah Airport

Beddah presented the company's investment plan for the second phase of development at the Jeddah Airport.

It includes the construction of a storage warehouse with an area exceeding 24,000 square meters within a site extending over 70,000 square meters.

Jeddah airport serves as the company's key ground handling station after undergoing development and expansion in 2021.

The expansion phase of the station's quality and ground handling services covers an area of 40,000 square meters.

It includes various cargo facilities equipped with state-of-the-art facilities, complying with international standards, and automated handling systems.

The services cover export, import, and various types of shipments, including medical, food, high-value, hazardous, and transit.

The station's development will increase the cargo facilities' handling capacity to approximately 1.1 million tons annually.

It is also expected to serve passenger air transportation, with an anticipated increase in transportation movement due to the growing number of flights for Hajj and Umrah travelers.

Express Mail

The official mentioned that among SAL's investments is the launch of the Express Mail station, a new facility for shipping services at Jeddah airport, providing distinguished shipping solutions that meet the specific needs of the e-commerce sector.

The facility will further enhance SAL's position as a prominent facility in the logistics solutions that serve the e-commerce sector, which will positively impact the growth of companies conducting their activities through e-platforms.

Riyadh Airport

The development of SAL's facility at Riyadh Airport includes renovating an operational facility spanning an area of 48,000 square meters within a site of 70,000 square meters.

According to Beddah, the renovations will include structural, electrical, and mechanical constructions and the complete replacement of the cargo handling system with an advanced one.

The development plan for the facilities also includes implementing functional changes in the Phase 1 warehouse to continue the main objective for Riyadh Airport.

Dammam

Beddah added that the plan includes, in its final phase, the development of Dammam Airport to enhance ground handling services in the air cargo sector in the Kingdom.

The building is undergoing limited-scale renovation plans to improve the working environment and enhance operational functions.

Like Riyadh Airport, Dammam Airport's improvements, and renovations will cover all structural, electrical, and mechanical constructions.

However, the main difference lies in the scope of the renovation and restoration works, which will be limited in the area according to a deliberate methodology.

He told Asharq Al-Awsat that the airport would be equipped with modern machines like those used in Jeddah and Riyadh airports.

Robots

As part of its investment strategy, SAL is adopting automated operating systems and digital transformation, which will bring about a qualitative leap within the logistics services sector, including robots and intelligent sorting solutions.

Beddah explained that it would improve SAL's warehouse management, streamline order fulfillment processes, reduce error rates, ensure fast and efficient order handling, and ultimately achieve high customer satisfaction.

SAL relies on advanced tracking and tracing systems while providing customers with real-time information and detailed analytics to monitor their shipments at various stages of the delivery process.

He indicated that the company had signed agreements with Microsoft Arabia to support its ambitions in enhancing digital transformation initiatives in the logistics sector.

Sector Growth

According to Beddah, through its extensive network of operations, the company has played a pivotal role in driving the growth and development of the logistics services sector in the Kingdom.

SAL manages over 162,000 square meters of advanced warehouses and storage facilities at strategic locations across 18 airports in Saudi Arabia.

All facilities have the latest advanced technological solutions and automated operating systems.

Beddah further stated that the company possesses a large fleet of vehicles and operates a vast network of distribution centers, ensuring its ability to execute delivery operations quickly and with high reliability across different regions.

Market share

The market share of SAL is estimated at 95 percent in the Saudi market for air freight, and it provides integrated services and solutions that serve the logistical sector.

 

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Business

JMMC Holds 65th Meeting via Videoconference, Discusses Energy Security and Market Stability

General view of Saudi Aramco's Ras Tanura oil refinery and oil terminal in Saudi Arabia May 21, 2018. REUTERS/Ahmed Jadallah
General view of Saudi Aramco's Ras Tanura oil refinery and oil terminal in Saudi Arabia May 21, 2018. REUTERS/Ahmed Jadallah
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JMMC Holds 65th Meeting via Videoconference, Discusses Energy Security and Market Stability

General view of Saudi Aramco's Ras Tanura oil refinery and oil terminal in Saudi Arabia May 21, 2018. REUTERS/Ahmed Jadallah
General view of Saudi Aramco's Ras Tanura oil refinery and oil terminal in Saudi Arabia May 21, 2018. REUTERS/Ahmed Jadallah

The Joint Ministerial Monitoring Committee (JMMC), comprising Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Nigeria, Algeria and Venezuela holds its 65th Meeting via videoconference.

The JMMC reviewed current market conditions and emphasized the essential role of the Declaration of Cooperation (DoC) in supporting the stability of global energy markets, according to SPA.

In this context, the committee highlighted the critical importance of safeguarding international maritime routes to ensure the uninterrupted flow of energy.

It also expressed concern regarding attacks on energy infrastructure, noting that restoring damaged energy assets to full capacity is both costly and takes a long time, thereby affecting overall supply availability.

Accordingly, the committee stressed that any actions undermining energy supply security, whether through attacks on infrastructure or disruption of international maritime routes, increase market volatility and weaken the collective efforts under the DoC to support market stability for the benefit of producers, consumers, and the global economy.

In this regard, the committee commended the DoC countries that took the initiative to ensure the continued availability of supplies, particularly through the use of alternative export routes, which have contributed to reducing market volatility.

The JMMC will continue to closely monitor market conditions and retains the authority to convene additional meetings or request an OPEC and non-OPEC Ministerial Meeting, as established at the 38th ONOMM held on December 5 2024.

The next meeting of the JMMC (66th) is scheduled for June 7, 2026.

Business

Saudi Market Edges Higher on Insurance and Basic Materials Support

An investor monitors stock prices on a screen at the Saudi stock market in Riyadh (AFP)
An investor monitors stock prices on a screen at the Saudi stock market in Riyadh (AFP)
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Saudi Market Edges Higher on Insurance and Basic Materials Support

An investor monitors stock prices on a screen at the Saudi stock market in Riyadh (AFP)
An investor monitors stock prices on a screen at the Saudi stock market in Riyadh (AFP)

Saudi Arabia’s benchmark Tadawul All Share Index (TASI) edged up 0.03 percent to 11,272 points on Sunday, supported by insurance and basic materials stocks. Total traded value reached SAR 4.27 billion ($1.1 billion).

Shares of Petro Rabigh and The National Shipping Company of Saudi Arabia (Bahri) rose 1 percent and 1.5 percent to SAR 10.9 and SAR 32.6, respectively.

Saudi Arabian Amiantit Co. (Amiantit) led gainers, rising 10 percent to SAR 15.63. In the materials sector, SABIC and Maaden advanced 0.84 percent and 0.46 percent to SAR 60.05 and SAR 65.7, respectively.

In insurance, The Company for Cooperative Insurance (Tawuniya) and Bupa Arabia climbed 1 percent and 2 percent to SAR 127.3 and SAR 174.1, respectively. Almarai rose 1.2 percent to SAR 44.48 after reporting its Q1 2029 results.

On the downside, Saudi Aramco—the index heavyweight—declined 0.22 percent to SAR 27.54.

ACWA Power fell about 1 percent to SAR 168 after announcing last week a temporary curtailment of power output at two of its solar projects. Emaar The Economic City (Emaar EC) was the biggest decliner, falling 7.6 percent to SAR 10.88.

Business

Saudi Airports Serve as Safety Valve for Regional Air Traffic as ‘Hormuz Fallout’ Hits Global Aviation

King Khalid International Airport in Riyadh (SPA)
King Khalid International Airport in Riyadh (SPA)
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Saudi Airports Serve as Safety Valve for Regional Air Traffic as ‘Hormuz Fallout’ Hits Global Aviation

King Khalid International Airport in Riyadh (SPA)
King Khalid International Airport in Riyadh (SPA)

Conflicts in the region are no longer confined to the geography of battlefields; their fallout has reached one of the world’s most vital and sensitive industries: aviation. Today, travelers and airlines alike face a harsh reality driven by record surges in jet fuel prices and a steep spike in insurance costs, pressures that have pushed ticket prices higher, threatening a severe economic squeeze that could derail global tourism plans and reshape travel patterns long taken for granted.

The surge in aviation costs cannot be separated from the turmoil in global energy markets. The link between crude oil and jet fuel prices peaked in early April 2026. As market confidence wavered amid US military threats, crude prices jumped to record levels due to the direct risk to supplies through the Strait of Hormuz, setting off an immediate spike in jet fuel prices. Given that jet fuel is among the most valuable refined products from a barrel of oil, these unprecedented crude levels pushed aviation fuel to nearly double its 2025 levels.

Compound pressures and a tourism slowdown

In remarks to Asharq Al-Awsat, aviation and airport management expert AlMotaz Al-Mirah said the current tensions, in an industry already operating on thin margins, are quickly reflected in both pricing and demand across the tourism sector.

“The rise in ticket prices today is not driven by a single factor,” he said, “but by a combination of pressures: higher fuel consumption, longer routes, elevated insurance costs, and reduced operational efficiency.”

The World Travel & Tourism Council confirmed that “the escalating conflict in Iran is already impacting travel and tourism across the Middle East by no less than $600 million per day in international visitor spending, as disruptions to air travel, traveler confidence, and regional connectivity weigh on demand.”

According to council data released in March, the Middle East plays a critical role in global travel, accounting for 5 percent of international arrivals and 14 percent of global transit traffic. Any disruption reverberates worldwide, affecting airports, airlines, hotels, car rental firms, and cruise lines.

The family travel bill

On leisure travel, Al-Mirah said fare increases have ranged from 15 percent to 70 percent across many routes- higher still on long-haul flights.

“A ticket that used to cost $500 now ranges between $800 and $1,000,” he noted, “meaning an increase of up to $2,000 for a family of four.” This is forcing many travelers to delay trips or opt for closer destinations, reshaping demand across regional markets.

He detailed the price surge since the crisis began in late February: jet fuel rose from around $85–90 per barrel to between $150 and $200. This has driven the cost per flight hour for long-haul aircraft from an average of $10,000 to more than $18,000 in some cases. A flight carrying 180 passengers could see total additional costs of about $15,000, forcing airlines to add roughly $80 per ticket just to break even.

Globally, Brazil’s Petrobras raised jet fuel prices by about 55 percent in early April, while the Philippines warned that some aircraft could be grounded due to fuel shortages, and Taiwanese carriers are preparing to increase international fuel surcharges by 157 percent.

Longer routes, heavier maintenance burdens

Al-Mirah explained that longer flight times to avoid unstable airspace carry steep financial costs, with each additional hour adding between $5,000 and $7,500. Route changes extending flight durations by one to two hours have increased fuel consumption by up to 30 percent. More time in the air also accelerates engine wear.

The strain goes beyond fuel. Increased flight hours speed up the deterioration of engines and components, bringing forward maintenance schedules and raising annual servicing costs- ultimately reducing fleet efficiency.

Airlines are also grappling with sharply higher war-risk insurance premiums. While such costs typically account for no more than 1 percent of total operating expenses, they have surged by between 50 percent and 500 percent in the current crisis, according to a March 2026 report by Lockton.

This buildup of fuel and insurance costs threatens to turn profitable routes into loss-making ones, potentially forcing cash-strapped or low-cost carriers to suspend some routes temporarily to preserve financial stability.

An aircraft from Riyadh Air at Le Bourget Airport (Reuters)

Saudi airports support regional air traffic

Amid these complexities, Saudi Arabia’s General Authority of Civil Aviation has deployed its capabilities to activate regional support protocols. Gulf airlines have shifted logistical operations to Saudi airports to keep regional air traffic safe and moving.

The authority announced that the Kingdom received more than 120 flights from neighboring countries’ carriers between February 28 and March 16, including Qatar Airways, Iraqi Airways, Kuwait Airways, Jazeera Airways, and Gulf Air.