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Saudi Arabia to Establish 18 Logistics Zones with Investments Exceeding $2.6 Billion

Saudi Minister of Transport and Logistics Services Eng. Saleh Al-Jasser speaks at the conference. (Asharq Al-Awsat)
Saudi Minister of Transport and Logistics Services Eng. Saleh Al-Jasser speaks at the conference. (Asharq Al-Awsat)
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Saudi Arabia to Establish 18 Logistics Zones with Investments Exceeding $2.6 Billion

Saudi Minister of Transport and Logistics Services Eng. Saleh Al-Jasser speaks at the conference. (Asharq Al-Awsat)
Saudi Minister of Transport and Logistics Services Eng. Saleh Al-Jasser speaks at the conference. (Asharq Al-Awsat)

Saudi Minister of Transport and Logistics Services Eng. Saleh Al-Jasser underlined on Sunday the remarkable progress in the Kingdom's port network, with an increase of 231.7 points on the UNCTAD Maritime Connectivity Index for 2024. He also disclosed the signing of contracts to develop 18 logistics zones with investments exceeding SAR 10 billion ($2.6 billion).

The announcement was made during the inauguration of the sixth edition of the Supply Chain and Logistics Services Conference in Riyadh, which aims to enhance integration across different transport modes and improve logistics efficiency as part of Saudi Arabia’s efforts to position itself as a global logistics hub.

The two-day conference, held from December 15–16, brought together international experts and specialists to share insights on best practices and strategies to enhance supply chain performance. A new platform was also introduced to empower women in the logistics sector by providing training and development opportunities.

Al-Jasser emphasized the Ministry’s plan to increase the number of logistics zones in Saudi Arabia from the current 22 to 59 by 2030. He highlighted the successful implementation of the first phase of logistics integration, linking ports, airports, and railways through streamlined protocols and mechanisms. This integration ensures smooth freight movement across sea, air, and land, further solidifying Saudi Arabia’s status as a global logistics hub under Vision 2030.

Speaking at a panel discussion entitled “The Role of Logistics in Enhancing Supply Chain Performance and Global Competitiveness under Vision 2030”, Al-Jasser revealed that the Saudi Railway Company (SAR) is working on doubling and expanding the Northern Train line. The project, with investments exceeding SAR 5 billion ($1.3 billion), is designed to support the growing mining sector in Saudi Arabia.

Minister of Industry and Mineral Resources Bandar Alkhorayef announced that Saudi Arabia achieved SAR 61 billion ($16.2 billion) in re-export revenues in 2023, marking a 23% increase from the previous year. He attributed this success to strong infrastructure and collaboration among relevant entities, which have ensured the provision of efficient, high-quality services.

Alkhorayef added that the Saudi Arabian Mining Company (Ma’aden) exported SAR 7 billion ($1.8 billion) worth of products in 2023. Saudi Arabia currently ranks fourth globally in fertilizer exports, with ambitions to become the global leader in the future.

Eng. Suleiman Al-Rubaian, Vice President of Procurement and Supply Chain Management at Aramco, highlighted the iktva program, which focuses on maximizing the added value of Saudi supply chains. The program has built a network of over 3,000 local suppliers and service providers, fortifying domestic supply chains.

The first day of the conference witnessed the signing of 86 agreements aimed at improving supply chain performance. The event also includes an exhibition featuring 65 international and local companies, as well as eight specialized workshops.

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Business

IMF Upgrades Outlook for Surprisingly Resilient World Economy to 3.3% Growth this Year

FILE PHOTO: A view of the International Monetary Fund (IMF) logo at its headquarters in Washington, D.C., US, November 24, 2024. REUTERS/Benoit Tessier//File Photo/File Photo
FILE PHOTO: A view of the International Monetary Fund (IMF) logo at its headquarters in Washington, D.C., US, November 24, 2024. REUTERS/Benoit Tessier//File Photo/File Photo
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IMF Upgrades Outlook for Surprisingly Resilient World Economy to 3.3% Growth this Year

FILE PHOTO: A view of the International Monetary Fund (IMF) logo at its headquarters in Washington, D.C., US, November 24, 2024. REUTERS/Benoit Tessier//File Photo/File Photo
FILE PHOTO: A view of the International Monetary Fund (IMF) logo at its headquarters in Washington, D.C., US, November 24, 2024. REUTERS/Benoit Tessier//File Photo/File Photo

An unexpectedly sturdy world economy is likely to shrug off President Donald Trump's protectionist trade policies this year, thanks partly to a surge of investment in artificial intelligence in North America and Asia, the International Monetary Fund said in a report out Monday.

The 191-nation lending organization expects that global growth will come in at 3.3% this year, same as in 2025 but up from the 3.1% it had forecast for 2026 back in October, The Associated Press reported.

The world economy "continues to show notable resilience despite significant US-led trade disruptions and heightened uncertainty,'' IMF chief economist Pierre-Olivier Gourinchas and his colleague Tobias Adrian wrote in a blog post accompanying the latest update to the fund's World Economic Outlook.

The US economy, benefiting from the strongest pace of technology investment since 2001, is forecast to expand 2.4% this year, an upgrade on the fund's October forecast and on expected 2025 growth — both 2.1%.

China — the world's second-largest economy — is forecast to see 4.5% growth, an improvement on the 4.2% the IMF had predicted October, partly because a trade truce with the United States has reduced American tariffs on Chinese exports.

India, which has supplanted China as the world's fastest-growing major economy, is expected to see growth decelerate from 7.3% last year (when it was juiced by an unexpectedly strong second half) to a still-healthy 6.4% in 2026.

Business

France Says Still Loyal to Syria Kurds, Hails Ceasefire

Syrian army personnel celebrate as government forces enter Raqqa city following the withdrawal of Syrian Democratic Forces, in Raqqa, Syria, January 18, 2026. REUTERS/Karam al-Masri
Syrian army personnel celebrate as government forces enter Raqqa city following the withdrawal of Syrian Democratic Forces, in Raqqa, Syria, January 18, 2026. REUTERS/Karam al-Masri
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France Says Still Loyal to Syria Kurds, Hails Ceasefire

Syrian army personnel celebrate as government forces enter Raqqa city following the withdrawal of Syrian Democratic Forces, in Raqqa, Syria, January 18, 2026. REUTERS/Karam al-Masri
Syrian army personnel celebrate as government forces enter Raqqa city following the withdrawal of Syrian Democratic Forces, in Raqqa, Syria, January 18, 2026. REUTERS/Karam al-Masri

France on Monday welcomed a ceasefire between the Syrian government and Kurdish-led forces and stressed it remained loyal to the latter who spearheaded the battle against the ISIS group.

"France is faithful to its allies," the foreign ministry said, urging all sides to respect the ceasefire deal, which will also see the Kurdish administration and forces integrate into the state after months of stalled negotiations.

Business

Lucid in 2026: 'Made in Saudi Arabia' Label Goes Global

Mark Winterhoff, interim CEO of Lucid (Company) 
Mark Winterhoff, interim CEO of Lucid (Company) 
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Lucid in 2026: 'Made in Saudi Arabia' Label Goes Global

Mark Winterhoff, interim CEO of Lucid (Company) 
Mark Winterhoff, interim CEO of Lucid (Company) 

Saudi Arabia is positioning itself as a global launchpad for Lucid, the electric-vehicle manufacturer, not merely as a consumer market, but as a manufacturing and export hub serving markets worldwide.

Speaking from Riyadh during his participation in the Future Minerals Forum, Mark Winterhoff, interim chief executive officer of Lucid — whose largest shareholder is Saudi Arabia’s Public Investment Fund (PIF) — outlined the company’s next phase, which focuses on disciplined expansion, resilient supply chains, and a strategic shift from ultra-luxury vehicles toward a broader consumer segment.

In remarks to Asharq Al-Awsat, Winterhoff described the forum as a critical platform for the electric-vehicle industry, given its heavy reliance on minerals and rare earth elements, particularly those used in magnets. He praised Saudi Arabia’s leadership in this area, noting its direct impact on multiple industrial sectors. Winterhoff oversees the execution of Lucid’s strategy and leads teams responsible for product design, engineering, and manufacturing efficiency.

Saudi Arabia as an Export Base

Winterhoff said Lucid’s Saudi factory - the company’s first manufacturing facility outside the United States - was designed from the outset as a major export platform, not solely to meet domestic demand.

Under current plans, only 13 to 15 percent of production will be allocated to Gulf Cooperation Council (GCC) markets, with the majority destined for export. He confirmed that Lucid remains on track to begin production at the facility by the end of this year, specifically in December.

In January 2025, Lucid joined the “Made in Saudi Arabia” program, enabling it to use the national manufacturing label on vehicles produced locally. The company is the first automotive original equipment manufacturer (OEM) to receive the designation, reflecting Saudi Arabia’s push to localize advanced industries, deepen partnerships with global manufacturers, and establish itself as a hub for electric-vehicle production and exports.

Strong Growth Momentum

Winterhoff said Lucid posted strong growth in both production and deliveries in 2025. Annual production more than doubled, while deliveries rose 55 percent year-on-year. The fourth quarter recorded particularly strong results in the United States and the Middle East, especially Saudi Arabia.

He noted that Lucid was the only electric-vehicle manufacturer in the US to report higher deliveries in the fourth quarter of 2025, at a time when many competitors saw sharp declines.

According to company figures, Lucid produced about 18,378 vehicles in 2025, up 104 percent from 2024, while deliveries reached 15,841 vehicles. In the fourth quarter alone, production climbed to 8,412 vehicles — up 116 percent from the previous quarter — while deliveries rose 31 percent to 5,345 vehicles.

While Lucid currently operates in the luxury segment, its most significant strategic shift involves developing a mid-size vehicle priced at around $50,000. Winterhoff said this model, aimed at a much wider consumer base, will form the backbone of production at the Saudi plant and enable the facility to reach its targeted maximum capacity.

Supply Chain Challenges and Outlook

Winterhoff identified supply chains - particularly for minerals, rare earth elements, and semiconductors - as ongoing challenges for the industry. He said Lucid faced repeated difficulties over the past year in sourcing magnets and securing stable semiconductor supplies. Forums such as the Future Minerals Forum, he added, are part of the solution, helping build a more stable and sustainable resource ecosystem.

Looking ahead, Winterhoff expressed confidence in Lucid’s trajectory. The company currently leads US electric-vehicle sales in the luxury sedan segment and ranks third when internal combustion vehicles are included. With the launch of its mid-priced model, Lucid expects higher production volumes and, in 2026, plans to enter the autonomous robotaxi market, an emerging sector it views as a key source of future growth.