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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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Vision 2030 Progress Accelerates Saudi Arabia’s Economic Growth

The Saudi capital Riyadh. SPA
The Saudi capital Riyadh. SPA
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Vision 2030 Progress Accelerates Saudi Arabia’s Economic Growth

The Saudi capital Riyadh. SPA
The Saudi capital Riyadh. SPA

Saudi Arabia is nearing the end of the second phase of its Vision 2030 plan (2021-2025), a period that has seen strong growth and expanding opportunities across multiple sectors, with key economic indicators reflecting the Kingdom’s progress.

Performance data for 2024 shows that Saudi Arabia, the Arab world’s largest economy, is firmly on course to meet its Vision 2030 targets, with a significant number of metrics exceeding initial projections.

According to the latest figures, 93% of the tracked indicators have been either fully or partially achieved. A total of 299 indicators have met their goals entirely.

Meanwhile, data on Vision 2030 initiatives show that 85% have either been completed or remain on schedule, with 674 initiatives fully implemented and another 596 progressing according to plan, out of a total of 1,502 active initiatives.

Saudi Arabia’s economy continued to expand in 2024, with real non-oil GDP rising by 3.9% year-on-year, driven by a 4.3% increase in non-oil sectors. The non-oil private sector Purchasing Managers’ Index (PMI) also posted a strong performance, climbing to 58.1 points in the fourth quarter.

The Kingdom’s unemployment rate among Saudi citizens fell to a record low of 7% in 2024, achieving the Vision 2030 target six years ahead of schedule, compared to 12.3% in 2016.

Meanwhile, Saudi Arabia maintained inflation at 1.7% by the end of 2024, one of the lowest rates among G20 nations, supported by balanced economic policies.

Boosting Competitiveness

Saudi Arabia advanced to 16th place in the 2024 IMD World Competitiveness Ranking, up from 36th in 2017, reflecting ongoing reforms to improve the business environment.

Global credit rating agencies also reaffirmed their confidence in the Kingdom’s economic outlook. Moody’s maintained Saudi Arabia’s rating at “A1” with a stable outlook, Fitch Ratings assigned it “A+” and S&P Global rated the Kingdom at “A/A-1.”

A Vibrant Society and Ambitious Nation

Saudi Arabia recorded major achievements on the social and cultural fronts. The number of UNESCO World Heritage sites in the Kingdom rose to eight, reaching the Vision 2030 target ahead of schedule.

The number of foreign Umrah pilgrims hit a record 16.92 million in 2024, surpassing the year’s target of 11.3 million.

Homeownership among Saudi families reached 65.4% in 2024, exceeding the year's target of 64%.

In digital governance, Saudi Arabia climbed to sixth place globally in the United Nations E-Government Development Index, rising 25 spots and nearing its Vision 2030 goal of fifth place.

Volunteerism also surged, with the number of volunteers exceeding 1.2 million, surpassing the Vision 2030 target of one million volunteers and reflecting a growing culture of civic engagement.

Positive Growth Outlook

International institutions forecast a strong outlook for Saudi Arabia’s economy in 2025.

The Organization for Economic Co-operation and Development (OECD) projects growth of 3.8%, the International Monetary Fund (IMF) expects 3% growth, and the World Bank forecasts an expansion of 3.4%. Saudi Arabia’s Ministry of Finance projects a higher growth rate of 4.6%.

The sustained economic momentum and rapid transformation under Vision 2030 have strengthened Saudi Arabia’s position as an attractive investment destination and a rising hub for promising opportunities.