Saudi Arabia is leading the region in the logistics market, customs clearance technology, and port operations, experts told Asharq Al-Awsat, noting that the value of the logistics services in the Kingdom amounted to USD 18 billion, and represented 55 percent of the total logistics services in the Gulf countries.
The Vice President of Al-Khaldi Company for Logistic Services, Moqren Al-Khaldi, told Asharq Al-Awsat that Saudi Arabia was a pioneer in adopting latest technologies in customs clearance, port operations, and the logistics center that serves the entire region of the Gulf Cooperation Council (GCC).
He also noted that Saudi Arabia was investing huge sums to raise the level of infrastructure by building new airports, seaports, and bridges to improve communication with other GCC states and other importing countries.
“The Kingdom’s geographic location facilitates focus on developing logistics centers for both domestic and transit goods. The Coronavirus pandemic led to a sharp decline in economic and commercial activities, due to border closures that affected shipping capacity and the flow of goods. It is expected that the region will witness further recovery in 2021,” Khaldi said.
The value of the logistics market in the Kingdom is 67.5 billion riyals (USD 18 billion), which makes it the largest among the Gulf States, he underlined, adding that Saudi Arabia was also one of the fastest-growing logistics sectors in the world.
He stressed that the value of the Saudi logistics services market was expected to exceed 94 billion riyals (USD 25 billion) this year.
Moreover, Khaldi underlined the importance of a recent agreement between his company - Al-Khaldi Company for Logistics Services, and Bertling Logistics, which aims to achieve significant market growth in the coming years.
For his part, Bertling CEO Colin MacIsaac noted that Saudi Arabia was an important and attractive market for international companies specializing in logistics, adding: “Our global team is excited about all the new business opportunities emerging in the country.”
“Saudi Arabia’s ‘Beyond Oil Program’ is critical for the diversification (especially in non-oil sectors), modernization, and well-being of the local business environment and society”, he said.
“The empowerment and employment of nationals (including women), the expansion of the private sector as well as the ease of doing business in the country and the increased support of local suppliers and partners are key of the Kingdom’s future vision and also anchored in the ambitions of our Joint Venture company”, MacIsaac continued, noting that local content would be “key to make our new setup in Saudi Arabia a success”.
For his part, Abdul-Rahman Baashen, head of the Al-Shorouk Center for Economic Studies, told Asharq Al-Awsat that Saudi Arabia has overcome the pandemic test with success, in terms of strengthening supply chains and raising the quality of the Saudi logistics market.
“Several economic reports indicate that Saudi Arabia tops the list of countries in the region in terms of infrastructure dedicated to customs clearance technology, port operations, and logistics services,” he remarked.
Baashen said he expected the year 2021 to witness more foreign investment in this field, amid increasing interest in new and current business opportunities in the Kingdom’s oil and gas sector, energy, and the non-oil sector.
