The launch of the National Privatization Strategy at the end of last month marked a decisive shift toward a sustainable, private sector-led model across Saudi Arabia’s economy, positioning it as a catalyst for advancing the Kingdom’s transport and logistics system and reinforcing the private sector’s role as a central development partner.
More than an administrative step, the strategy acts as a legislative engine designed to boost international competitiveness and translate the National Transport and Logistics Strategy from long-term ambition into measurable economic impact.
At its core is a clear objective: entrench Saudi Arabia’s position as a global logistics hub linking three continents under Vision 2030.
The momentum began in 2018 with the launch of the Privatization Program, one of Vision 2030’s flagship initiatives aimed at accelerating implementation and strengthening coordination across government entities.
By the end of 2025, the program had completed its plan, becoming the second Vision 2030 program to achieve its targets. It identified assets and resources for privatization across key sectors, including water, transport, health and education, improving service quality while creating jobs and attracting high-value investment.
The program laid firm institutional foundations, notably through the establishment of the National Center for Privatization and the approval of the Privatization Law. Together, they streamlined procedures, cataloged assets and services, and prepared sectors for public-private partnerships.
With the program formally concluded, the National Privatization Strategy and the Center now spearhead the next phase, expanding delivery and unlocking further opportunities.
Partnership at the core
Saudi Arabia’s model rests on Public-Private Partnerships (PPPs), aimed at improving economic performance while increasing private-sector participation in managing and owning public facilities and services.
The target is clear: lift the logistics sector’s contribution to GDP to 10% by 2030 by opening facilities to domestic and foreign investors, improving service quality and sharpening the Kingdom’s competitive edge in global trade.
Investment has already followed. Minister of Transport and Logistics Services Saleh Al-Jasser said private investments in the sector have surpassed 280 billion riyals ($74.7 billion), raising transport and logistics’ share of GDP to 6.2%.
In a further step, Airports Holding Company, in cooperation with the National Center for Privatization, announced a PPP project to develop Prince Naif bin Abdulaziz International Airport in Qassim.
Revitalizing logistics
Nashmi Al-Harbi, a logistics and supply chain specialist, said privatization policies have become the primary driver of the transformation of Saudi logistics into a magnet for global investment.
More than 18 billion riyals ($4.8 billion) have been injected into ports and logistics zones, while customs clearance times have been cut to under 24 hours through the FASAH platform. Port capacity has climbed to 40 million containers.
The results have been visible internationally. Saudi Arabia advanced 17 places in the World Bank’s Logistics Performance Index, strengthening confidence among major global shipping lines.
Al-Jasser told the Public Investment Fund and Private Sector Forum that 80% of targeted investments in transport and logistics will come from the private sector. Recently signed maritime and port contracts with private operators exceed 18 billion riyals, with most port investments now executed through private participation.
Al-Harbi said privatization is not simply a supportive policy but a core guarantee of Saudi Arabia’s transformation into a global logistics hub. It attracts financing and international operational expertise while accelerating adoption of technologies such as artificial intelligence and the Internet of Things, driving higher service standards and lower costs.
He said privatizing ports and airports has addressed longstanding bottlenecks, eliminating customs clearance delays that once stretched to nine days. Port operational efficiency has increased by 71%, alongside stronger integration between rail and road networks to ensure smoother cargo flows.
Boosting competitiveness
Logistics expert engineer Hassan Al-Halil said privatization has reshaped the sector, making it more attractive to leading global shipping companies through structural reforms.
Transferring port and airport management to private operators reduced shipping times and operating costs, enhancing market competitiveness. Significant investments modernized ports, warehouses and smart transport systems, offering advanced, user-friendly facilities.
Private sector participation also reduced operational bottlenecks, making shipping, unloading and storage faster and more organized. The introduction of private operators in customs clearance cut bureaucracy, accelerated procedures and increased transparency — key factors in attracting international players. Clear legal frameworks have reinforced investor confidence in major logistics projects.
Linking three continents
Al-Halil described privatization as a foundational pillar for connecting Asia, Europe and Africa, though part of a broader ecosystem. Sustained investment in technological infrastructure, airports and smart warehouses, combined with integrated land, sea and air networks, remains essential.
He stressed the need to align flexible regulation with specialized human capital. In this framework, privatization provides the necessary base, working alongside technology and policy to support the Kingdom’s global logistics ambitions.
Innovation and growth
Competition driven by privatization has spurred innovation, including digital tracking and integrated transport and storage services, strengthening international appeal. The mixed public-private model in ports and airports has created a more efficient, flexible and investment-ready environment that supports economic growth.
The transformation extends beyond seaports. Air cargo volumes have risen 34% annually to 1.2 million tons. Saudi Arabia ranked fourth among emerging markets in the 2025 Agility Logistics Index, reinforcing its ambition to enter the global top 10.
Domestically, 30 new logistics centers have been added, supporting an ecosystem that now employs more than 651,000 people.
Structural enablers
These gains reflect institutional efforts led by the National Industrial Development and Logistics Program (NIDLP), launched in 2019 to strengthen infrastructure and expand capacity. The program serves as a structural enabler linking domestic and regional networks, facilitating cross-border goods movement and ensuring competitively priced services for investors and consumers.
By engaging the private sector, NIDLP aims to reduce shipping costs through network integration, streamline customs procedures and ease cross-border trade while maintaining competitive domestic distribution services.
To sustain progress and address private-sector challenges, the Logistics Partnership Council was established as a bridge between investors and policymakers, turning on-the-ground feedback into policies that enhance competitiveness.
Saudi Arabia is moving beyond its traditional role as a facility operator to redefine its place in global logistics. Privatization and strategic partnerships are not only improving efficiency but positioning the Kingdom as a critical link in future supply chains, advancing Vision 2030’s goal of building a diversified and sustainable economy.
