Ports, Logistics Drive Saudi Transport Sector’s First-Half Growth Surge

Jeddah Islamic Port (SPA)
Jeddah Islamic Port (SPA)
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Ports, Logistics Drive Saudi Transport Sector’s First-Half Growth Surge

Jeddah Islamic Port (SPA)
Jeddah Islamic Port (SPA)

Saudi Arabia’s transport sector gathered financial momentum in the first half of 2026 as operating activity expanded and several listed companies, particularly those in logistics, ports and transportation, delivered improved performances.

The nine companies’ combined net profit surged 155.5%, or about 395.6 million riyals, to approximately 650 million riyals ($173.3 million), from 254.4 million riyals ($67.8 million) in the same period of 2025.

The improvement was supported by a strong second-quarter performance. Combined revenue rose 13.1% year on year to about 6.21 billion riyals, while the sector swung to a net profit of 156.1 million riyals from a loss of 341.4 million riyals in the second quarter of 2025.

The marked turnaround reflected improved performances by logistics, port and transportation companies, despite continued pressure on some rental and aviation-related services.

The sector comprises nine companies: SAL Saudi Logistics Services Co., Saudi Ground Services Co., United International Transportation Co. (Budget Saudi), Theeb Rent a Car Co., Lumi Rental Co., Saudi Public Transport Co. (SAPTCO), SISCO Holding, flynas and Cherry Trading Co.

SAL Saudi Logistics Services leads profits

SAL Saudi Logistics Services accounted for about 53.5% of the sector’s total first-half profit after its net profit rose 10.4% to approximately 348 million riyals, from 315.3 million riyals in the same period of 2025.

The company attributed the increase to improved operating performance and revenue growth in its cargo handling and logistics segments.

United International Transportation Co. (Budget Saudi) ranked second by profit, reporting a first-half net profit of 127.8 million riyals, down 24% from 168.4 million riyals in the same period a year earlier.

The company attributed the decline to lower utilization rates in its short-term rental business amid geopolitical conditions, as well as higher insurance costs and increased provisions for receivables under a more conservative policy.

SISCO Holding ranked third after its net profit jumped 91% to 85.4 million riyals, from 44.7 million riyals in the first half of 2025, driven by revenue growth and strong performances in its ports and logistics segments.

Sector returns to profitability

At the second-quarter level, the sector’s companies recorded a sharp turnaround in financial performance, posting a combined net profit of about 156 million riyals, compared with a loss of 341 million riyals in the corresponding quarter of 2025.

Combined revenue, meanwhile, continued to grow, reaching 6.213 billion riyals from 5.5 billion riyals a year earlier, an increase of about 13%.

The turnaround is particularly significant because it indicates that the expansion in activity is no longer reflected solely in revenue but is increasingly translating into improved profitability and operating efficiency.

Logistics demand supports growth

Commenting on the results, financial and economic expert Dr. Suleiman Al-Humaid Al-Khalidi, a member of the Saudi Economic Association, told Asharq Al-Awsat that Saudi Arabia’s transport and logistics sector delivered a strong improvement in financial performance during the first half of 2026.

He said the improvement was driven by several factors, chiefly rising demand for logistics services, growth in freight and transportation activity and an expansion in economic activity linked to major projects and Saudi Vision 2030. These factors, he added, have placed Saudi Arabia among the advanced countries in this vital sector.

Al-Khalidi said the factors were strengthening the kingdom’s position among leading countries in transportation and logistics, one of the Saudi economy’s key sectors.

Higher operating efficiency and improved profit margins at several companies also supported the results, alongside expansion in value-added services and digital transformation, which helped increase productivity and improve fleet and supply-chain management, he said.

Revenue growth combined with the sector’s return to profitability was a positive indication of strong and sustainable demand, rather than a temporary improvement in results, Al-Khalidi said.

Saudi Arabia’s economy is expanding across industry, trade, tourism, retail, projects and infrastructure, all of which generate increasing demand for transportation, storage and supply services, he added.

Al-Khalidi said the most important aspect of the first-half results was not merely the increase in revenue, but the companies’ ability to convert that growth into profits and stronger margins, reflecting improved quality of growth and operating efficiency.

He said the sector had significant opportunities for further growth, particularly as investment continues in infrastructure and the development of ports, airports and logistics zones, reinforcing the kingdom’s position as a regional logistics hub linking three continents.



Gold Ticks Up on Softer Dollar, but Heads for Weekly Fall

FILE PHOTO: Gold bangles are displayed inside a jewelry store in the old quarters of Delhi, India, May 11, 2026. REUTERS/Bhawika Chhabra/File Photo
FILE PHOTO: Gold bangles are displayed inside a jewelry store in the old quarters of Delhi, India, May 11, 2026. REUTERS/Bhawika Chhabra/File Photo
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Gold Ticks Up on Softer Dollar, but Heads for Weekly Fall

FILE PHOTO: Gold bangles are displayed inside a jewelry store in the old quarters of Delhi, India, May 11, 2026. REUTERS/Bhawika Chhabra/File Photo
FILE PHOTO: Gold bangles are displayed inside a jewelry store in the old quarters of Delhi, India, May 11, 2026. REUTERS/Bhawika Chhabra/File Photo

Gold edged higher on Friday as the dollar weakened, but the metal was still on track for a small weekly loss as investors weighed signals from the Federal Reserve on interest rates.

Spot gold rose 0.2% to $4,179.19 per ounce by 0633 GMT, but was down 0.4% so far in the week. US gold futures for ‌December delivery climbed ‌0.7% to $4,200.50.

"Gold has been trapped in a ‌range ⁠of $4,221, with the ⁠bottom of the range at $4,075 being met earlier this week," said Kelvin Wong, a senior market analyst at OANDA.

"Inflationary trends still remain hot as the core CPI data and core PPI data for September are hitting beyond expectations."

The US dollar headed for its first weekly fall in five weeks, making greenback-priced bullion more ⁠affordable for buyers overseas.

US producer prices increased by ‌the most in 4-1/2 years ‌last month amid rising costs for goods and services, in the latest sign ‌that inflationary pressures are broadening beyond energy-related products.

The data followed ‌Wednesday's consumer price report, which showed prices accelerated in September on a surge in gasoline costs.

Traders are pricing in a 13% probability of a rate hike later this month and 89% chance of an increase ‌in December, according to CME's FedWatch Tool.

Fed Chairman Kevin Warsh voiced optimism on Friday about ⁠US economic strength ⁠and surprise about how well global economies have been "hanging in there" amid recent geopolitical shocks, despite tighter monetary policy to fight inflation.

However, Chicago Fed President Austan Goolsbee said this week's stronger-than-expected inflation data had been "discouraging".

While gold is considered a hedge against inflation, higher interest rates reduce the appeal of the non-yielding asset.

Elsewhere, several large Indian mutual funds issued public notices late on Thursday suspending bulk subscriptions to gold exchange-traded funds.

Among other metals, spot silver rose 0.5% to $57.73 per ounce, platinum gained 0.3% to $1,630.56 and palladium was up 0.8% at $1,135.11. However, all three metals headed for weekly losses.


ACWA to Asharq Al-Awsat: Energy Storage Key to Saudi Renewable Expansion

Sakaka Solar Photovoltaic Power Plant (ACWA). 
Sakaka Solar Photovoltaic Power Plant (ACWA). 
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ACWA to Asharq Al-Awsat: Energy Storage Key to Saudi Renewable Expansion

Sakaka Solar Photovoltaic Power Plant (ACWA). 
Sakaka Solar Photovoltaic Power Plant (ACWA). 

Saudi Arabia’s ACWA is expanding its renewable energy, electricity storage and water desalination projects as the rapid growth of artificial intelligence and data centers drives up power demand and increases the need for reliable, efficient and competitively priced electricity.

Omar al-Hassan, ACWA CEO in Saudi Arabia, told Asharq Al-Awsat that the accelerating expansion of AI and data centers was reshaping the energy sector’s requirements.

The challenge is no longer limited to generating more electricity, he explained, but also involves ensuring a continuous supply, operational efficiency and competitive costs.

ACWA is developing projects that combine renewable energy and storage with solutions to strengthen supply reliability, drawing on its experience in large-scale power and water projects.

The company’s total power generation capacity stands at 98.2 gigawatts, while its desalination portfolio has a capacity of 9.7 million cubic meters per day.

Al-Hassan also highlighted ACWA’s efforts to harness digital technologies and AI to improve the performance of its assets, going beyond meeting rising electricity demand to developing more efficient and reliable solutions.

Storage supports renewable energy expansion

As Saudi Arabia expands its solar and wind projects, electricity storage is becoming increasingly important, allowing power generated during periods of abundant supply to be stored for use when demand rises.

Al-Hassan expects storage to play a growing role in the Kingdom’s energy system alongside generation facilities and transmission networks.

In August 2026, ACWA signed three agreements with the Saudi Power Procurement Company, acting as the principal buyer, to develop battery energy storage projects in Haden, Muwayh and Al-Kahfah.

The projects have a combined power capacity of 1,500 megawatts and an energy storage capacity of 6,000 megawatt-hours, under agreements spanning 15 years.

Al-Hassan described the projects as evidence of opportunities in the Saudi market and the importance of storage in supporting renewable energy expansion.

He expects storage to become an increasingly significant factor in planning new projects, depending on grid needs, individual project requirements and economic feasibility.

Red Sea project demonstrates off-grid potential

ACWA’s Red Sea project, which combines solar generation and battery storage, has demonstrated the feasibility of operating an integrated utilities system powered by renewable energy and storage without connecting to the national electricity grid.

The project began commercial operations in September 2026 and includes a 340-megawatt solar power plant and a battery storage system with a capacity of 1,227 megawatt-hours.

According to al-Hassan, the project underscores the importance of integrated planning from the outset, with generation and storage capacities designed to meet actual demand and ensure uninterrupted supplies.

He emphasized that the success of renewable energy projects depends not only on generation capacity but also on the integration of system components and operational efficiency, while accounting for differences in site requirements, costs and operating conditions.

Partnerships to advance desalination

In the water sector, ACWA sees opportunities to advance desalination through greater use of renewable energy and more efficient technologies, helping reduce energy consumption and production costs while meeting growing demand.

With a desalination portfolio capable of producing 9.7 million cubic meters of water per day, the company is focusing on improving plant efficiency, developing desalination technologies and reducing reliance on conventional energy sources wherever technically and economically feasible.

In August 2026, ACWA signed a memorandum of understanding with Veolia to cooperate on improving desalination plant designs, equipment and operational performance.

It also signed a joint development agreement with Indonesia’s PT Garam to establish a project combining seawater desalination with industrial salt production.

The project would use shared infrastructure to meet water needs and support industrial activities.

Al-Hassan identified further growth opportunities in increasing water production, improving the efficiency of existing plants, developing new technologies and expanding partnerships to provide reliable water supplies at competitive costs.

 

 


25th WPC Energy Congress in Riyadh Draws Record Attendance of More than 33,000 Visitors

Prince Abdulaziz bin Salman during the opening of the World Petroleum Congress in Riyadh (Asharq Al-Awsat)
Prince Abdulaziz bin Salman during the opening of the World Petroleum Congress in Riyadh (Asharq Al-Awsat)
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25th WPC Energy Congress in Riyadh Draws Record Attendance of More than 33,000 Visitors

Prince Abdulaziz bin Salman during the opening of the World Petroleum Congress in Riyadh (Asharq Al-Awsat)
Prince Abdulaziz bin Salman during the opening of the World Petroleum Congress in Riyadh (Asharq Al-Awsat)

The 25th WPC Energy Congress in Saudi Arabia drew a record audience of more than 33,000 visitors, alongside participants from 135 countries and 489 media representatives, making it the most attended edition in the event’s more than 90-year history.

Saudi Arabia hosted the congress for the first time from October 11 to 15 as part of Riyadh Energy Week, under the theme “Pathways to an Energy Future for All.” The event brought together ministers, officials, company executives and energy experts to discuss supply security, investment, innovation and the future of oil and gas markets.

Prince Abdulaziz bin Salman bin Abdulaziz, Minister of Energy and Minister of Industry and Mineral Resources, officially opened the congress alongside Pedro Miras, president of the WPC.

The sessions explored key issues shaping the future of the energy sector, including artificial intelligence, digital transformation, energy efficiency, transport technologies, financing and resilient infrastructure. Discussions also examined the policies and investments needed to enhance energy security and foster international partnerships across the energy value chain.

Ministerial discussions also examined the future of global oil and gas markets, priorities for developing Saudi Arabia’s energy sector under Vision 2030, and ways to build more resilient systems capable of responding to crises and meeting the needs of different countries.

In recognition of achievements in the sector, the Dewhurst Award was presented to Vicki Hollub, a board member and former chief executive of Occidental Petroleum, making her the first woman to receive the award, according to the statement.

The congress also hosted the inaugural Energy Hackathon, launched by the Ministry of Energy as part of Riyadh Energy Week, attracting more than 6,700 participants from over 40 Saudi cities. Prince Abdulaziz bin Salman honored six winning teams across three categories: operational efficiency, innovative vision and smart control.

Alongside the congress, Riyadh hosted the 16th meeting of the Arab Ministerial Council for Electricity, which discussed updates to the two agreements governing the Arab Common Electricity Market and a pilot electricity exchange project involving Saudi Arabia, Egypt and Jordan. The meeting also addressed cooperation in renewable energy, energy efficiency, and clean hydrogen.

Riyadh Energy Week also featured the 17th Clean Energy Ministerial (CEM17) and the 11th Mission Innovation Ministerial (MI-11), as part of efforts to strengthen international cooperation in the energy sector.

At the close of the congress, Kazakhstan was named host of the 26th edition, which will take place in the capital, Astana, from June 11 to 15, 2028. It will mark the first time the congress has been held in Central Asia.