Saudi Arabia Anticipates More Investment in Kingdom’s Logistics Sector

View shows the King Abdullah Financial District, north of Riyadh, Saudi Arabia, on March 1, 2017. REUTERS/Faisal Al Nasser
View shows the King Abdullah Financial District, north of Riyadh, Saudi Arabia, on March 1, 2017. REUTERS/Faisal Al Nasser
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Saudi Arabia Anticipates More Investment in Kingdom’s Logistics Sector

View shows the King Abdullah Financial District, north of Riyadh, Saudi Arabia, on March 1, 2017. REUTERS/Faisal Al Nasser
View shows the King Abdullah Financial District, north of Riyadh, Saudi Arabia, on March 1, 2017. REUTERS/Faisal Al Nasser

The Saudi market is bracing for the influx of more foreign and local investments in its logistics sector, especially as the world starts to recover from the coronavirus pandemic’s aftermath.

Meanwhile, experts predicted that giant Saudi entities specialized in supply chains and support, and logistics services will emerge because of alliances among small enterprises looking for a larger local market share.

On Thursday, Saudi Arabia handed over the first 32 logistic licenses for several international and local companies. The small and medium enterprises have investments in the Kingdom’s logistic services.

Experts confirmed to Asharq Al-Awsat that the local market will likely see more investments, especially with the announcement of signing an agreement to establish the largest integrated logistics zone in the Middle East at the Jeddah Islamic Port (west of Saudi Arabia) with investments exceeding 500 million riyals ($132 million).

Hussain Al-Zahrani, Chairman of the Aviation and Support Services Committee at the Jeddah Chamber of Commerce, told Asharq Al-Awsat that the logistics sector will witness a growth in the volume of investment flows in the coming period.

Zahrani pointed out that the growth is in line with the size of the Saudi market and the spread of large industrial areas in the Kingdom.

These areas need supply chains for many years, which means that the market is promising.

According to global expectations, the global logistics services market will reach more than 15 trillion dollars by the end of 2024, according to Zahrani, who stressed that the market was large.

Zahrani pointed out to the importance of the Saudi Cabinet approving the profit-sharing decision.

This will give a strong boost to investment, said Zahrani, noting that companies invest and the government shares profits without having fixed wages over the years. Such a plan helps in the presence of large entities, as firms suffer from long-term fixed rents.



Saudi Arabia to Host World Investment Conference on November 25-27

A general view of Riyadh, Saudi Arabia. (SPA)
A general view of Riyadh, Saudi Arabia. (SPA)
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Saudi Arabia to Host World Investment Conference on November 25-27

A general view of Riyadh, Saudi Arabia. (SPA)
A general view of Riyadh, Saudi Arabia. (SPA)

Under the patronage of Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, the World Association of Investment Promotion Agencies (WAIPA) and Invest Saudi will hold the 28th annual World Investment Conference (WIC) in Riyadh from November 25 to 27.

The event will gather global leaders in investment, government, and international organizations to tackle the theme “Harnessing Digital Transformation and Sustainable Growth: Scaling Investment Opportunities”.

On the occasion, Saudi Minister of Investment Khalid Al-Falih said: “Under the wise leadership of Custodian of the Two Holy Mosques King Salaman bin Abdulaziz Al Saud and Crown Prince Mohammed, the Kingdom, driven by its ambitious Vision 2030, has become a premier world investment destination and is experiencing unprecedented growth in overall investment amounts and diversity.”

This year’s World Investment Conference in Riyadh “will be a platform for sharing our nation’s strategic vision with our partners, and an invaluable opportunity to highlight our status as a trusted partner for sustainable economic growth,” he added.

“We look forward to welcoming investment leaders from around the world to forge partnerships that will benefit both the Kingdom and global economies,” he stressed.

Vision 2030 has driven significant economic reforms in Saudi Arabia, attracting substantial foreign investment. Over 28,900 foreign investment licenses have been issued, reflecting the Kingdom's transformation into a major global investment hub.

Key factors contributing to this growth include 100% foreign ownership in specific sectors, streamlined commercial register procedures, simplified visa issuance, and other investor-friendly initiatives that have created a favorable and appealing environment for investors in various sectors, including renewable energy, logistics services, and AI.

The Kingdom's attractive investment landscape has also facilitated the development of a dynamic economy that leads in innovation and growth.

WAIPA Executive Director and CEO Ismail Ersahin said: “WAIPA is excited to bring the 28th WIC to Riyadh, a city that perfectly embodies the future of investment. The conference will provide a crucial platform for Investment Promotion Agencies and investors to discuss emerging opportunities in a rapidly evolving global landscape.”

“We deeply appreciate Saudi Arabia’s vision and leadership, which will ensure that this edition of WIC is an impactful gathering for all participants,” he remarked.

Key highlights of this year’s WIC are a range of conference tracks, such as high-level dialogues with government ministers, insightful sessions on technology, sustainability, and economic cooperation, as well as practical masterclasses for investment professionals, a dedicated entrepreneurship track that will emphasize the transformative role of startups and innovators, and exclusive matchmaking sessions that will facilitate strategic partnerships between investors, SMEs, and potential collaborators.

Participants will also have the opportunity to celebrate the achievements of Investment Promotion Agencies on the Awards Track, honoring innovation and excellence in investment facilitation.

This year’s WIC promises to be a pivotal forum as it aligns with global investment drivers: the disruptive influence of technology and AI, global supply chain resilience, energy transition toward sustainability, and the transformative role of entrepreneurs and startups in reshaping investment landscapes traditionally led by multinational corporations.

Leaders and stakeholders will discuss and explore how these factors are redefining economies and driving forward-looking investment models worldwide.

With its focus on scaling investment opportunities, WIC is designed to equip attendees with the tools, knowledge, and connections necessary to drive meaningful economic impact.