Vision 2030 Transforms Saudi Arabia into a Global Logistics Platform

Jeddah Islamic Port (Saudi Ports Authority)
Jeddah Islamic Port (Saudi Ports Authority)
TT

Vision 2030 Transforms Saudi Arabia into a Global Logistics Platform

Jeddah Islamic Port (Saudi Ports Authority)
Jeddah Islamic Port (Saudi Ports Authority)

In a global landscape rocked by supply chain disruptions, Saudi Arabia has emerged as an indispensable pillar of stability on the international logistics map. Over the past decade, the Kingdom has demonstrated an exceptional ability to overcome global shocks with greater strength, relying on the Vision 2030 approach based on resilience and proactivity.

This systematic investment in "strengths" was not merely a response to local development requirements but also the construction of a cross-border economic defensive shield, transforming current challenges into a launching pad for global leadership.

In light of the Vision, the Kingdom's geostrategic location has transformed from a static comparative advantage into a dynamic tool that has shaped a new economic reality. This was achieved through the high-quality connectivity between vital waterways from the Arabian Gulf in the east to the Red Sea in the west.

This interconnectedness, supported by advanced air and rail transport platforms, has not only enhanced the Kingdom's position as a link between three continents but also made it a vital artery ensuring the sustainability of international trade. It has proven the national system's ability to transform geopolitical challenges into pioneering opportunities that guarantee global prosperity.

Institutional Harmony

The journey of comprehensive development began with the reorganization of the logistics system, aiming to enhance performance efficiency and achieve the highest degree of integration among its various sectors.

This was embodied in the transformation of the Ministry of Transport into the Ministry of Transport and Logistics Services, leading institutional harmony that brings together the Authority General Transport, ports, and civil aviation under its umbrella.

This reform did not stop at the organizational aspect but extended to enhancing the operational role of national entities. This included empowering the Saudi Railway Company (SAR) and establishing new strategic entities such as Riyadh Air, the Saudi Air Navigation Services Company, the General Authority for Roads, and the National Transport Safety Center.

The system also witnessed a qualitative transformation in the postal services sector through the development of the SPL institution and the expansion of its services to meet modern logistics requirements.

Roadmap Towards Strategic Certainty

National strategies for transport, logistics services, and aviation have contributed to creating a state of "strategic certainty" regarding the sector's future, supported by colossal infrastructure projects that ensure sustainable growth through:

- Air Expansion: Working on establishing leading international airports, such as King Salman International Airport, and the new Abha and Jazan airports, in parallel with launching the "Air Connectivity Program" to enhance global access.

- Smart Logistics Centers: Launching the master plan for logistics centers, which includes establishing 59 centers (24 of which were activated by the end of 2025), and developing ports to become "smart ports" that rely on digitalization as a fundamental pillar.

- Rail Connectivity: Expanding the railway network and connecting the northern lines with the eastern ones (Jubail-Dammam), which has provided low-cost, highly reliable logistics solutions.

How the Kingdom Digitalized the Future of Investment?

The logistics environment has undergone fundamental development, enabling it to assume a prominent position as an attractive destination for global investment, thanks to the adoption of a comprehensive digitalization strategy for services and integrated connectivity through unified digital platforms. This transformation has led to enhanced ease of doing business by simplifying regulatory procedures and automating license issuance, making it more flexible and faster in responding to market demands.

This digital path has also contributed to raising the efficiency of real-time coordination among various regulatory bodies, which in turn has shortened the "investor's journey" and solidified reliability levels in national logistics operations.

In terms of direct economic impact, these digital enablers have played a pivotal role in stimulating growth and diversification rates. They have contributed to revitalizing re-export sectors and providing effective logistical support for non-oil exports. Technical integration has also facilitated the access of local products to international markets according to competitive standards in terms of efficiency and cost, making the logistics system a key driver for supporting cross-border trade and expanding the Saudi economy's global influence.

The Language of Numbers

These strategic efforts culminated in tangible progress for the Kingdom in the most important international forums, reflecting the efficiency of sustainable infrastructure investment and continuous improvement in logistics performance.

This was embodied by the Kingdom reaching the top ten countries globally in the Logistics Performance Index (LPI) issued by the World Bank, in addition to ranking second globally in growth rates among G20 countries, with a growth of 32 percent compared to 2024.
The Kingdom also maintained its strong presence among the top four centers in the Agility Emerging Markets Logistics Index for 2025, which confirms the competitiveness and stability of the Saudi investment environment.

To facilitate global trade movement, the Kingdom achieved qualitative leaps in the efficiency of border operations; it successfully reduced customs clearance times from 9 hours in 2021 to less than two hours by 2025. This achievement coincided with a strategic expansion in logistics facilities, represented by an increase in the number of licensed deposit areas to 21, which enhanced the Kingdom's ability to accommodate global goods flows and support supply chain fluidity with efficiency and capability.

The Story of 24 Million Containers

The geography of the Arabian Gulf and the Red Sea are among the most vital and influential waterways in international trade movement, which gives Saudi ports, extending along the eastern and western coasts, immense strategic importance as fundamental pillars of global navigation.

By serving as logistics convergence points connecting three continents, these ports have succeeded in solidifying their pivotal role in ensuring the sustainability of global supply chains and the flow of goods, transforming the Kingdom's geographical advantages into an active economic force that supports the stability of cross-border trade.

In pursuit of maximizing these gains, the Kingdom launched a series of qualitative development projects to modernize port infrastructure and expand shipping services. These efforts resulted in a major leap in handling capacity, which increased by 50 percent to reach 24.3 million standard containers, in parallel with a tangible increase in the number of added maritime shipping services, totaling 101 services.

This expansion has not only contributed to increasing the Kingdom's interconnectedness with global markets but also enabled it to establish new shipping routes that enhance flexible access to key international ports.

This development vision has extended beyond ports to include the establishment of integrated logistics zones and centers designed to be attractive incubators for major investments. These zones allow investors to maximize the benefits of integrated logistics services for their business growth, in addition to activating re-export activities, which represent added value to the national economy.

Through this integrated system, the Kingdom reaffirms its commitment to its role as a global leader in the maritime sector, providing an advanced logistics environment that ensures efficient operational processes and supports the sustainability of global economic growth.
 

The Vision Train: A Railway Artery Connecting Cities to Ports

The Kingdom invested early in building a robust aviation sector, recognizing the importance of connecting with the world, facilitating the arrival of pilgrims, and finding innovative solutions for cargo shipping.

The sector underwent pivotal regulatory stages, starting with the establishment of the Civil Aviation Department and Saudi Arabian Airlines, leading to structural independence with the establishment of the General Authority of Civil Aviation, which laid the foundations for institutional work that paved the way for major transformations aligning with growing international requirements.

With the emergence of Vision 2030, the Kingdom foresaw exceptional opportunities to develop the aviation sector and effectively contribute to economic growth, leveraging its strategic location connecting the world's three continents.

This vision was translated through the reorganization of the General Authority of Civil Aviation and the establishment of new strategic entities, such as Riyadh Air and the Saudi Air Navigation Services Company, in parallel with the launch of the National Aviation Strategy and the Air Connectivity Program, which aimed to expand international reach through new air routes connecting Saudi cities with global capitals.

In the context of infrastructure modernization, the pace of establishing major international airports accelerated, with development work continuing across all regions of the Kingdom, alongside accelerating private sector involvement in airport management to enhance operational efficiency.

Thanks to these efforts, Saudi airports today have transformed into pivotal connectivity hubs linking global and regional destinations, which has contributed to achieving qualitative leaps in passenger numbers and air cargo activity.

The Kingdom is steadily moving towards its ambitious targets of connecting to 250 global destinations via 29 airports, serving 330 million passengers, and transporting 4.5 million tons of cargo annually by 2030.

Railway Network

The story of railways in the Kingdom began as a strategic necessity to connect the capital, Riyadh, with Dammam Port, leading to the establishment of the Saudi Railways Organization to enhance import and export movement and freight transport.

With the expansion of development projects, especially in the mining sector, the Saudi Arabia Railways (SAR) was established to extend the network, reaching the farthest north of the Kingdom, thereby creating a solid infrastructure for transporting passengers, minerals, and commercial goods with high efficiency.

With the launch of Vision 2030, the railway sector entered an ambitious phase aiming for complete integration with all other logistics sectors.

This phase witnessed an unprecedented expansion in train operations, making Saudi cities more interconnected; the north of the Kingdom was linked to its center and east, providing reliable and sustainable transport solutions. Work on the Haramain High-Speed Railway also accelerated, representing a qualitative leap in serving pilgrims, connecting Makkah, Madinah, Jeddah, and King Abdullah Economic City in Rabigh with the highest standards of speed and safety.

Today, the Kingdom is moving towards a more interconnected future through ambitious projects that support tourism activity and enhance regional connectivity between Saudi cities and the Gulf Cooperation Council (GCC) countries.

This advanced network is no longer just a means of transport; it has become a fundamental pillar for enhancing the quality of life and supporting economic diversification by reducing logistics costs and improving service reliability, thereby solidifying the Kingdom's position as a global logistics hub connecting industrial centers, ports, and urban communities.

It is clear that the radical transformation witnessed by the Saudi logistics sector is not just a race towards numbers and indicators, but a complete reshaping of the "Kingdom's economic identity" to become the vital and reliable link for global trade.



Saudi Real Estate Developers Move to Capitalize on New Foreign Ownership Rules

A general view of buildings and homes in the Saudi capital, Riyadh (File photo: Reuters)
A general view of buildings and homes in the Saudi capital, Riyadh (File photo: Reuters)
TT

Saudi Real Estate Developers Move to Capitalize on New Foreign Ownership Rules

A general view of buildings and homes in the Saudi capital, Riyadh (File photo: Reuters)
A general view of buildings and homes in the Saudi capital, Riyadh (File photo: Reuters)

Saudi Arabia's real estate market has entered a new phase of testing the practical impact of the executive regulations governing property ownership by non-Saudis, as listed developers move swiftly beyond welcoming the decision and the initial positive market reaction to translating it into strategic growth plans.

While the sector index has extended its early gains on expectations that the new rules will broaden international demand, the competitive advantage is beginning to shift toward companies with high-quality assets that are ready to be marketed and sold.

The real estate index on the Saudi stock market posted a sharp gain following the announcement, rising from 2,924 points to 3,044 points. The increase was driven by investor expectations that allowing non-Saudis to own property under specific regulations would expand demand for Saudi real estate assets, particularly in cities and projects with strong investment and religious appeal.

Real estate stocks led the market's gainers in the session following the announcement. Shares of Umm Al Qura for Development and Construction (Masar) hit the daily 10 percent limit, while Knowledge Economic City rose about 9.3 percent. Jabal Omar Development, Retal, Emaar The Economic City, and Makkah Construction and Development also posted strong gains.

Financial and economic adviser Dr. Hussein Al Attas told Asharq Al-Awsat that allowing non-Saudis to own property represents an important structural shift for Saudi Arabia's real estate market, but said the impact will not be uniform across all developers. Instead, the market will increasingly differentiate between companies with attractive assets and projects in locations targeted by international investors and those without them.

Master plan of the Masar Makkah destination (Masar)

He added that asset quality, location, financial strength, the size of developable land holdings, and the ability to attract international investors will be among the key factors determining how much companies benefit from the decision in the coming period.

Al Attas expects the sector to perform positively over the medium to long term. However, he said the real impact of the decision will ultimately be measured by companies' ability to turn this opening into actual sales, partnerships, and cash flows, rather than by the initial rise in share prices following the announcement.

In the first concrete move by a listed company since the regulations were approved, Jabal Omar Development on Sunday outlined its strategy for capitalizing on the decision after its project in Makkah was included within the geographic areas where non-Saudis are permitted to own property.

The company said the decision would broaden its base of potential investors and property owners among Muslims around the world, supporting demand for its real estate assets. It also announced plans to offer 400 existing hotel residential units for sale this year as the first phase of the program, with the proceeds earmarked to reduce debt and lower financing costs.

The company also plans to redesign the seventh and final phase of the project by increasing the number of hotel residential units available for sale while making greater use of off-plan sales programs to reduce financing requirements and strengthen reliance on internally generated liquidity.

Al Attas said the market's response to the regulations has unfolded in two stages. The first was a broad wave of optimism that lifted most real estate companies. The second has begun as investors seek to identify the companies best positioned to convert the decision into tangible growth in sales, cash flow, and profitability.

The decision to allow non-Saudis to own property forms part of a broader package of measures introduced by the Kingdom in recent months to restore balance to the real estate market and strengthen its investment appeal.

These measures include allowing the sale, purchase, and development of land in new areas north of Riyadh, increasing fees on undeveloped land, imposing fees on vacant properties, and freezing annual rent increases in Riyadh for five years.

The decision also coincides with signs of improving real estate and construction activity across the Kingdom. The construction sector returned to growth in May, supported by stronger residential building activity and renewed growth in new orders.

Although the full impact of the regulations will take time to emerge, recent moves by real estate developers indicate that the market has already begun shifting from expectations to execution as companies seek to attract a new segment of investors and buyers from outside the Kingdom.


China Imposes New Export Controls, Deepening Japan Row

FILE PHOTO: A China yuan banknote featuring late Chinese chairman Mao Zedong and a computer keyboard are seen reflected on an image of Chinese flag in this illustration picture taken November 1, 2019.  REUTERS/Florence Lo/Illustration/File Photo
FILE PHOTO: A China yuan banknote featuring late Chinese chairman Mao Zedong and a computer keyboard are seen reflected on an image of Chinese flag in this illustration picture taken November 1, 2019. REUTERS/Florence Lo/Illustration/File Photo
TT

China Imposes New Export Controls, Deepening Japan Row

FILE PHOTO: A China yuan banknote featuring late Chinese chairman Mao Zedong and a computer keyboard are seen reflected on an image of Chinese flag in this illustration picture taken November 1, 2019.  REUTERS/Florence Lo/Illustration/File Photo
FILE PHOTO: A China yuan banknote featuring late Chinese chairman Mao Zedong and a computer keyboard are seen reflected on an image of Chinese flag in this illustration picture taken November 1, 2019. REUTERS/Florence Lo/Illustration/File Photo

China put 20 more Japanese organizations on a blacklist Monday over the export of items with both military and civilian possible uses, adding fuel to a months-long row with Tokyo.

The new additions, including major companies, "have participated in enhancing Japan's military capabilities", the Chinese commerce ministry said in a statement.

Japan's government spokesman Minoru Kihara called the measures "unacceptable and deeply regrettable" and said Tokyo had "lodged a strong protest and demanded that the measures be withdrawn."

The countries' have been at row since Japanese Prime Minister Sanae Takaichi suggested in November that Tokyo may react militarily to an attack on Taiwan, the self-ruled island Beijing has vowed to seize control by force if necessary.

China responded furiously, including by advising its citizens -- previously the biggest cohort of foreign tourists -- to avoid Japan.

Chinese authorities ramped up pressure in February by imposing export restrictions on dozens of Japanese firms it said were involved in building up Tokyo's military.

The 20 additions to the export blacklist named Monday include specialized subsidiaries and technology firms involved in supplying components and engineering support for Japan's defense sector.

Among them are the National Institute for Defense Studies and Mitsubishi Electric Defense and Space Technologies Corporation, the statement said.

China's commerce ministry said the controls require exporters to submit risk assessments and guarantees that dual-use items will not enhance Japanese military strength prior to making shipments.

Those named on the watchlist can apply to be removed by cooperating with "verification" procedures according to Chinese law, the ministry said.

China is the world's largest producer and refiner of rare earths, which are crucial for various high-tech products including electric vehicles, smartphones, missile guidance systems and lasers.

Japan has "strayed further down the wrong path, intensifying its push for a 'new form of militarism'", an unnamed commerce ministry spokesperson said in a statement on the latest measures.

- China-Russia patrols -

Since Takaichi took office in October, Japan has quickened its pivot towards a more proactive defense policy, further shaking off -- with US encouragement -- a pacifist outlook, which has been in place since the end of World War II.

Tokyo has loosened rules on exports of lethal weaponry and deepened military cooperation with other countries in the region at odds with China including the Philippines.

Japan and the United States, as well as many other countries, are seeking to curb dependence on China in rare earths, as Beijing increasingly uses its dominance for geopolitical leverage.

Japan on Monday also joined South Korea in criticizing joint flights by Chinese and Russian bombers and fighters over the weekend in the region.

Fellow US allies South Korea and Japan both scrambled fighter jets in response to the patrols by the convoy of around 15 aircraft on Saturday.

"This marks the 10th instance of such long-range activities by Chinese and Russian bombers in the vicinity of Japan since December last year," Japanese government spokesman Kihara said Monday.

Beijing's defense ministry said that the Chinese and Russian air forces conducted a "strategic air patrol" over the Sea of Japan, the East China Sea and the western Pacific Ocean, "demonstrating their determination and capability to jointly uphold regional peace and stability".

Tokyo last week also rejected Beijing's accusations that the Japanese military "harassed" a Chinese aircraft carrier strike group during 40 days of exercises in the Pacific.

 


EU, China Trade Tensions Loom over Minister Visit

Chinese Commerce Minister Wang Wentao will meet his EU counterpart Maros Sefcovic in Brussels. Pedro PARDO, Annabelle GORDON / AFP/File
Chinese Commerce Minister Wang Wentao will meet his EU counterpart Maros Sefcovic in Brussels. Pedro PARDO, Annabelle GORDON / AFP/File
TT

EU, China Trade Tensions Loom over Minister Visit

Chinese Commerce Minister Wang Wentao will meet his EU counterpart Maros Sefcovic in Brussels. Pedro PARDO, Annabelle GORDON / AFP/File
Chinese Commerce Minister Wang Wentao will meet his EU counterpart Maros Sefcovic in Brussels. Pedro PARDO, Annabelle GORDON / AFP/File

Europe and China will gauge whether trade frictions can be resolved through talks Monday when top EU trade official Maros Sefcovic hosts his Chinese counterpart Wang Wentao in Brussels for day-long discussions.

The European Union has turned its attention to China as Brussels frets over increasing trade imbalances between the 27-nation bloc and the Asian powerhouse.

The issue is existential for the EU, AFP reported.

Brussels fears it will lose certain industries entirely if it does not act against a glut of cheap goods made in China threatening manufacturers in Europe.

Wang's visit comes less than two weeks after EU leaders tasked the European Commission with tackling the issue through talks with Beijing -- while simultaneously preparing beefed-up defense measures to protect key sectors.

Sefcovic will tell Wang the current imbalances are unsustainable for the EU before hosting the Chinese minister for a special dinner on Monday evening.

The EU's trade deficit in goods hit around 360 billion euros ($410 billion) in 2025, meaning the bloc imported way more from China than it exported there.

In turn, Wang will likely seek to understand how serious the EU is in threatening to deploy its trade defense armory against Beijing.

But the EU still hopes to avoid a trade war with its second-largest trading partner for goods alone, according to the European Commission -- with China making clear it will retaliate against actions it views as unfair.

Following Trump's playbook?

Europe insists on the need for a level-playing field, pointing out that Chinese firms have an unfair advantage because of massive state subsidies.

The numbers support Brussels' argument. Between 2005 and 2024, Chinese companies received around three to eight times more government support than businesses in the Organization for Economic Co-operation and Development, according to the OECD, which called it "a conservative estimate".

The EU has an arsenal of trade defense tools it can use to address the issue.

These include imposing higher tariffs if investigations prove companies are selling goods at unfairly low prices or if there is state support that gives an unjust advantage to the manufacturers.

Brussels could also slap restrictions known as safeguard measures -- including quotas -- if there is a sudden surge in imports.

New measures are likely also on the way.

The European Commission, which leads EU trade policy, is working on an instrument that would force businesses to diversify their suppliers in critical sectors like chips and rare earths.

And French President Emmanuel Macron in May proposed a European "Section 301" -- the trade tool US President Donald Trump has employed to set higher tariffs for certain sectors after investigations.

'Not enemies'

The EU has taken several measures to confront soaring imports from China including doubling its duties on foreign steel, slapping higher levies on small parcels from abroad and hefty tariffs on Chinese-made electric vehicles.

Despite growing acceptance of the need to get tougher however, Brussels has shown zero appetite for a painful trade war with Beijing.

Beijing warns it is ready to respond to any measures it believes target China.

They are not empty threats for the EU since China previously slapped duties on European cognac and conducted anti-dumping probes into pork and dairy products.

The warning weighs on EU capitals.

Germany has until recently been more cautious since it is more exposed to China's economy but the biggest supporter of a more pragmatic approach has been Spain as it seeks Beijing's investment.

Although he echoed China's retaliation warning last week, Beijing's envoy to the EU Cai Run also urged dialogue as he told a Brussels audience that the bloc and Beijing were "partners, not rivals, and certainly not enemies".

The relationship is significant for China too: the EU is its second-largest trading partner.

After dinner with Sefcovic, Wang will head to London.