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Largest Logistics Center in Saudi Ports Starts Operating

Saudi Arabia moves forward in implementing transformation strategy in the logistics and port service industry (Asharq Al-Awsat)
Saudi Arabia moves forward in implementing transformation strategy in the logistics and port service industry (Asharq Al-Awsat)
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Largest Logistics Center in Saudi Ports Starts Operating

Saudi Arabia moves forward in implementing transformation strategy in the logistics and port service industry (Asharq Al-Awsat)
Saudi Arabia moves forward in implementing transformation strategy in the logistics and port service industry (Asharq Al-Awsat)

Saudi Binzagr Company announced Tuesday that the Industrial Valley in King Abdullah Economic City (KAEC) started the trial phase for the largest integrated logistics center in the Kingdom worth more than one billion riyals ($266,600).

Saudi Arabia has been working to expand its ports and establish logistics centers to facilitate import and export.

The center is one of the largest in the region, with an area of 97,000 square meters and a capacity of more than 110,000 pallets for storing medical and food products.

It includes 50-meter high shelves that operate automatically with the latest technologies for storing and rearranging goods, in addition to 56 gates to receive all types of trucks, and parking lots for 180 trucks at the same time to facilitate loading and unloading.

A strategic partnership has been concluded for storing and distributing medicines with the National Unified Procurement Company for Medical Supplies (NUPCO) and for storing Binzagr Company's food products as well as those for international companies in KAEC Industrial Valley.

Binzagr CEO Ahmed Binzagr announced that the center’s construction was in line with the latest international standards.

“It includes a mechanism to facilitate storage, distribution, transportation and value-added services.”

Binzagr also spoke of an area of more than 8,000 square meters for all customers to provide consumer products for the Saudi market.

KAEC CEO Ahmed bin Ibrahim Linjawy said Binzagr selected the Industrial Valley as the headquarters of its logistic services center because it is one of the largest logistics platforms in the Kingdom and a major advanced connection hub in international trade between the east and the west.

Linjawy pointed out that KAEC and its strategic sectors have become part of the Kingdom’s ambitious Vision 2030 by supporting the industrial sector and attracting foreign investments.

CEO of TAD Logistics Khalid al-Bawardi told Asharq Al-Awsat that the expansion of ports, the establishment of logistical centers and the simplification of import and export procedures are necessary to achieve Vision 2030’s objective to make the Kingdom a global logistics hub and help it advance in the global index of logistics services from 48th in the world to 25th, and become the first regionally.

This step will attract local and global investments, enable the Kingdom to create jobs and increase the contribution of the logistics sector to the GDP, Bawardi explained.

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Mandatory Insurance for Board Members of Saudi Financial Institutions Against Failures

Employees at the Saudi Investment Bank. (Saudi Investment Bank)
Employees at the Saudi Investment Bank. (Saudi Investment Bank)
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Mandatory Insurance for Board Members of Saudi Financial Institutions Against Failures

Employees at the Saudi Investment Bank. (Saudi Investment Bank)
Employees at the Saudi Investment Bank. (Saudi Investment Bank)

Asharq Al-Awsat learned that the Saudi Central Bank (SAMA) is taking steps to require financial institutions that are listed on the Saudi stock markets—both the main market (TASI) and the parallel market (Nomu)—to provide insurance coverage for their board members against professional errors and failures.

The measure aims to protect board members from potential liabilities while also safeguarding shareholder interests. The move aligns with SAMA’s supervisory and regulatory role in maintaining the stability and growth of the financial sector.

According to information obtained by Asharq Al-Awsat, this insurance offers financial protection, but does not exempt board members from their legal responsibilities or any penalties resulting from regulatory violations.

Directors and Officers (D&O) liability insurance provides coverage for executives, board members, or the company itself against fines, lawsuits, or compensation claims that may arise from their decisions. This applies in cases such as regulatory non-compliance, the issuance of misleading statements, or the dissemination of incorrect information.

Under D&O liability insurance, professional failures include errors, negligence, and the dissemination of inaccurate information due to lapses in professional duties. Financial claims covered under this insurance may include legal costs, fines, and lawsuit settlements.

Last year, the Capital Market Authority (CMA) issued a final ruling against 14 individuals, including board members and employees of Raydan Food Company (formerly Raydan Kitchens & Restaurants), for violating Article 49(a) and Article 50(a) of the Capital Market Law, as well as Article 6(a) of the Market Conduct Regulations. They were ordered to pay over SAR 77 million ($20.56 million) in avoided losses and fined SAR 50.6 million ($13.4 million).

The ruling implicated the chairman, vice chairman, managing director, and six other board members—including the head of the audit committee and two committee members—under Article 49(a) of the Capital Market Law. Additionally, the chairman, vice chairman, managing director, two other board members, and others were found guilty under Article 50(a) of the law, along with Article 6(a) of the Market Conduct Regulations.