The world’s largest express transportation company FedEx Express is moving to a direct-serve presence in Saudi Arabia.
FedEx Express will invest more than 1.5 billion Saudi riyals ($400 million) into the Saudi economy over the next 10 years to meet the country's growing international shipping demands.
The investment will go into talent management, local operations and infrastructure, the company said in a statement.
The company's investment, in line with Saudi's Vision 2030 goals and the ‘National Industrial Development and Logistics Program’, seeks to increase non-oil exports to more than 1 trillion riyals ($266 billion).
FedEx Express has been facilitating trade in Saudi Arabia since 1994, offering international solutions and connectivity through local service providers, most recently through SAB Express.
Its direct presence will further help local businesses trade with ease and expand their reach into the more than 220 countries and territories that it serves, the statement added.
“This strategic expansion in the kingdom will help Saudi-based businesses connect to new markets and customers around the world, supporting Saudi Arabia’s Vision 2030 goals to diversify the national economy,” said Jack Muhs, regional president of FedEx Express Middle East, Indian Subcontinent, and Africa.
“In addition to our commitment to the Saudi economy, we see FedEx Express playing an important role in developing the small- and medium-enterprise environment in Saudi Arabia, which forms the backbone of the economy, and represents 99 percent of Saudi Arabia’s private sector.”
FedEx Express will continue to work closely with SAB Express to provide pickup, delivery, and customs clearance services across the country, the statement read.
“We’re happy to continue supporting FedEx Express in Saudi Arabia with their growth journey and join them in playing a critical role in developing Saudi Arabia’s logistics infrastructure, in line with the country’s coordinated efforts and strategy in diversifying the economy,” Sheikh Salah Al Bluewi, chairman of SAB Express, said.
“The logistics sector is a key contributor towards employment, investment, and overall economic growth in our nation.”
