The speed and cost of transporting shipments are no longer the only factors determining companies' choices in the logistics services market. Geopolitical disruptions and changes in global trade routes have redefined the concept of supply chain efficiency. Securing transportation alternatives, the ability to shift quickly between routes and modes of transport, and ensuring the uninterrupted flow of goods have become more prominent factors in customer decisions.
In Saudi Arabia, this shift is reflected in growing demand for integrated logistics services, alongside the expansion of industrial activity, imports, and infrastructure investment. Companies operating in the sector are taking advantage of this trend to expand their operational capabilities and develop solutions that combine air, land, and sea transport, providing greater flexibility in response to changes in global trade.
SAL is among the leading beneficiaries of this demand, having recorded its highest quarterly revenue in its history during the second quarter of this year, at SAR512.1 million ($136.6 million), up 30 percent year on year. Net profit rose 18 percent to about SAR191 million ($50.9 million). In the first half of the year, revenue increased 23.1 percent to SAR957.9 million ($255.4 million).
Rayan Al-Bakri, CEO of SAL's logistics business, said that "reliability and flexibility have become among the most important factors influencing customer decisions and global supply chains." He noted that when certain trade routes or transportation channels face operational challenges or unexpected changes, customers turn to solutions that ensure business continuity and speed of access to markets.
He added in an exclusive statement to Asharq Al-Awsat that SAL is seeing growing interest in integrated logistics solutions that combine more than one mode of transport according to each customer's needs. He explained that the company does not view air or land freight as direct alternatives to sea transport, but rather as complementary elements within a single system designed to achieve efficiency and flexibility in the movement of goods.
Al-Bakri said that "goods always find a way to reach the end customer, with the means varying," noting that the company continues to leverage strategic partnerships to expand logistics connectivity options for customers.
In this context, he pointed to SAL's cooperation with SPARK Logistics to activate a new land corridor between the Port of Sohar in Oman and the dry port at King Salman Energy Park (SPARK). He said the route strengthens regional trade flows and increases the flexibility and reliability of supply chains.
He also pointed to increased operating capacity at airports and the provision of solutions to receive and accommodate demand from customers and partners in the domestic and Gulf markets, alongside connecting airports through an integrated operating network to enhance supply chain flexibility.
Positive Demand Outlook
Al-Bakri views the outlook for demand for SAL's services positively in the coming period, amid continued growth in inbound shipments and expanding imports of spare parts and equipment related to industrial activities, as well as rising demand for more integrated and flexible logistics solutions across the region.
According to Al-Bakri, this outlook is based on several factors, including the diversity of the customer base, the expansion of specialized logistics services, and the investments the company is making to strengthen its operational capabilities and infrastructure.
Domestic consumption and the building of strategic inventories for most products are also creating opportunities for sustainable growth across the sector as a whole.
At the same time, the sector is dealing with a range of global variables that could affect profitability and operating costs, including transportation, insurance, and energy costs, as well as geopolitical developments that could affect international trade flows.
Al-Bakri said SAL is focusing instead on improving operational efficiency, increasing productivity, leveraging modern technologies, and diversifying revenue sources to support sustainable performance over the long term.
He added that the ability to adapt quickly to changes, along with operational discipline and continued investment in value-added services, would remain among the key factors supporting the company's performance in the coming period, ensuring business continuity and maintaining service levels for partners and customers across different sectors and services.
Infrastructure Expansion
Investment in infrastructure and operational capabilities is a key part of SAL's growth strategy. The company is working on a range of parallel initiatives aimed at increasing operational readiness, enabling the logistics sector, and strengthening the Kingdom's position as a global logistics hub.
Al-Bakri said the company's current priorities include expanding operational capabilities at airports across the Kingdom, developing SAL logistics zones, and investing in digital solutions and smart technologies that improve operational efficiency and accelerate the flow of shipments through the various stages of the supply chain.
SAL is also focusing on developing infrastructure that supports specialized services and integrated logistics solutions in line with the needs of the Kingdom's vital and growing sectors.
In this context, Al-Bakri said the company is continuing to expand its international presence through the acquisition of Aviapartner Liège, strengthening connections between its customers and one of Europe's air cargo hubs and supporting SAL's reach across global trade routes.
At the same time, the company is expanding its network of global partnerships supporting the development of advanced infrastructure and logistics services. These include two memorandums of understanding signed with CIMC Middle East to explore cooperation opportunities in cargo handling systems, automation, robotics, and autonomous vehicles.
The areas of cooperation include developing facilities and warehouses within SAL's logistics zones and attracting global investments and companies to the Kingdom, strengthening its position as a regional hub for manufacturing, logistics services, and international trade.
Automation and Specialized Services
As part of its digital transformation, SAL continues to invest in modern technologies and smart solutions, including cooperation with Huawei Tech Investment Saudi Arabia to explore applications of artificial intelligence, 5G, and cloud computing in the logistics sector.
Al-Bakri said these efforts support the development of smarter logistics zones, improve operational efficiency, and enhance the customer experience across the various stages of the supply chain.
At the same time, specialized logistics services, particularly pharmaceutical, medical, and temperature-controlled shipments, continue to grow amid the high levels of precision and reliability required by these sectors.
He said these services are becoming increasingly important within SAL's strategy because they require advanced operational capabilities, specialized infrastructure, and specialized expertise, in addition to the value they provide to customers.
According to Al-Bakri, the company continues to accelerate its automation and digital transformation efforts through investment in smart technologies and solutions that improve operational efficiency, handling accuracy, and decision-making speed.
SAL is also focused on sustainability by adopting practices and solutions that contribute to more efficient use of resources and support the objectives of the logistics sector in the Kingdom.
Al-Bakri said the company's direction is to expand specialized and integrated services, support them with modern technologies, and develop more sustainable logistics solutions that meet customer expectations and keep pace with the transformation taking place in the sector at both the regional and global levels.
