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Saudi Crown Prince Launches 'National Strategy for Transport, Logistics'

Saudi Crown Prince Mohammed bin Salman
Saudi Crown Prince Mohammed bin Salman
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Saudi Crown Prince Launches 'National Strategy for Transport, Logistics'

Saudi Crown Prince Mohammed bin Salman
Saudi Crown Prince Mohammed bin Salman

In a move set to anchor Saudi Arabia’s position as a global logistics hub connecting three continents and to revamp the Kingdom’s transportation sector, Crown Prince Mohammad bin Salman unveiled on Tuesday the “National Strategy for Transport and Logistics.”

Apart from consolidating the Kingdom’s position as a logistics center for three of the world’s continents, the strategy looks to improve all transport services and enhance integration between logistics systems and modern modes of transport to support comprehensive development in Saudi Arabia.

It encompasses a host of vital projects that enable the achievement of economic and social goals and promotes effective governance models to enhance institutional work within the transportation sector.

This will be done in a manner consistent with the “Transport Ministry” rebranding to the “Ministry of Transport and Logistics Services.”

“The strategy will strengthen human and technical capabilities in the transport and logistics sector in the Kingdom,” affirmed the Crown Prince.

“It will enhance the connection with the global economy and enable our country to invest its geographical position in the middle of the three continents in diversifying our economy by establishing an advanced logistics services industry, building high-quality systems of services, and applying competitive business models to enhance productivity and sustainability in the logistics sector,” he explained.

“Transport and logistics are a major focus of the programs of the Kingdom’s Vision 2030 and a vital enabling factor for economic sectors towards sustainable development,” he added.

The Crown Prince pointed out that the strategy focuses on developing infrastructure, launching several platforms and logistic zones in the Kingdom, implementing advanced operating models and systems, and strengthening effective partnerships between the government and the private sector.

This direction is steered toward achieving four main goals: transforming Saudi Arabia into a logistics hub, enhancing livability across the Kingdom, enhancing fiscal sustainability, and improving public entities' performance.

The Crown Prince added that the strategy also aims to advance Saudi Arabia to place fifth globally in-transit passengers, increase international destinations to more than 250, and launch a new national air carrier.

These developments would enable other sectors such as Hajj, Umrah, and tourism to achieve their national goals.

Furthermore, the strategy will seek to raise the capabilities of the air cargo sector by doubling its capacity to reach more than 4.5 million tons.

“The strategy enables us to reach a capacity of more than 40 million containers annually including all associated investments in developing port infrastructure and enhancing its integration with the logistic areas in the Kingdom, as well as expanding its connectivity with international shipping lines, to integrate with rail and road networks, which contributes to improving the efficiency of the transport ecosystem and its economics,” said the Crown Prince concerning maritime transport.

He also clarified that railways provide services for both passengers and the freight transport sector through a network of 5,330 km of track, 450 km of which are in the Haramain high-speed railway between Makkah and Madinah, which is the most extensive high-speed transport project in the region.

The strategy will also upgrade the total length of future railways to an estimated 8,080 km, including the “Land Bridge” project, which spans over more than 1,300 km. It will have a capacity to transport over three million passengers and more than 50 million tons of freight annually, connecting the Kingdom’s ports on the coast of the Arabian Gulf with the ports of the Red Sea coasts.

Self-evidently, the plan and “Land Bridge” project unlock new and promising opportunities for the Kingdom’s rail line by having it pass through modern logistic centers, economic hubs, industrial cities, and mining activities.

The Crown Prince added that this would improve the Kingdom’s logistic performance index and rank Saudi Arabia among the top ten countries in the world in the field.

Moreover, the rail line will include an open market for operators and investors. The plan also encourages regional interconnection with Arab Gulf states by a railway line, positioning the Kingdom as an influential player in regional and international transport economies.

The Crown Prince stressed that the strategy is based on essential pillars such as the Kingdom’s major road networks, for which the Kingdom retains top global standing in terms of its connectivity.

Altogether, the Kingdom will be among the most internationally advanced countries in terms of road quality and safety, as the strategy includes many initiatives aimed at reducing the number of road traffic accidents, following the best global practices, as well as achieving efficient connectivity, and developing public transport services in Saudi cities.

The Kingdom is also looking to achieve sustainability goals, preserving the environment, reducing fuel consumption by 25%, and providing intelligent solutions that facilitate traveler mobility between cities and the transport of goods.

According to the Crown Prince, this will be implemented through adopting global cutting-edge and innovative technologies.

He pointed out that one of the strategy's main objectives is to increase the contribution of the transport and logistics sector to the national GDP.

While the contribution of this sector to the Kingdom’s GDP is currently about 6%, the strategy aims to raise it to 10%, making the transport and logistics sector a significant contributor to the national economy, enabling business growth, expanding investments, and increasing the sector’s annual non-oil revenues to reach about SAR45 billion in 2030.

“We are proud of the achievements made under the leadership of Custodian of the Two Holy Mosques King Salman and are planning to move forward in making many more for our country and to advance its leading position in the world by increasing efforts and achieving more successes supported by our highly ambitious people,” noted the Crown Prince.

“We are all confident in our ability to achieve national goals in line with the Kingdom’s Vision 2030,” he asserted.

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Egypt Seeks Faster Progress on Libya Gas, Refining and Power Projects

Egyptian Foreign Minister Badr Abdelatty speaks during a press conference with Minister of Information Diaa Rashwan (not pictured) in Cairo, Egypt, March 25, 2026. (Reuters)
Egyptian Foreign Minister Badr Abdelatty speaks during a press conference with Minister of Information Diaa Rashwan (not pictured) in Cairo, Egypt, March 25, 2026. (Reuters)
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Egypt Seeks Faster Progress on Libya Gas, Refining and Power Projects

Egyptian Foreign Minister Badr Abdelatty speaks during a press conference with Minister of Information Diaa Rashwan (not pictured) in Cairo, Egypt, March 25, 2026. (Reuters)
Egyptian Foreign Minister Badr Abdelatty speaks during a press conference with Minister of Information Diaa Rashwan (not pictured) in Cairo, Egypt, March 25, 2026. (Reuters)

Egypt aims to accelerate energy projects with Libya, including gas pipeline links, refining of Libyan crude in Egypt and an electricity interconnection, Egyptian Foreign Minister Badr Abdelatty said late on Saturday.

Abdelatty's comments were in ‌a ministry ‌statement after a meeting ‌with ⁠Libya’s acting oil ⁠and gas minister Khalifa Abdulsadek in Tripoli.

Abdelatty also ‌called for cooperation on petroleum products and the completion of projects to refine Libyan ‌oil in Egypt and re-export it, the statement said, ⁠adding ⁠that Abdulsadek had said that Libya would continue implementing existing projects and would visit Cairo soon to continue technical talks with Egypt’s petroleum and electricity ministers.

The statement did not provide details on costs or the status of the projects.

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GCC: Railway Agreement Sets Joint Framework for Project Implementation and Operation

GCC transport ministers pose for a group photo following the 27th committee meeting in Kuwait. (GCC Railway Authority)
GCC transport ministers pose for a group photo following the 27th committee meeting in Kuwait. (GCC Railway Authority)
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GCC: Railway Agreement Sets Joint Framework for Project Implementation and Operation

GCC transport ministers pose for a group photo following the 27th committee meeting in Kuwait. (GCC Railway Authority)
GCC transport ministers pose for a group photo following the 27th committee meeting in Kuwait. (GCC Railway Authority)

Jasem Albudaiwi, secretary-general of the Gulf Cooperation Council (GCC), said on Sunday that the signing of the General Agreement on the GCC Railway Project marked an important step toward establishing an integrated regional transport network.

He said the network would facilitate the movement of citizens and residents, ease freight transport, boost intra-GCC trade efficiency and strengthen member states’ economic competitiveness and the region’s position in regional and international trade.

Albudaiwi's remarks came at the signing ceremony in the Bahraini capital, Manama, on Sunday, held under the patronage and in the presence of Bahrain’s Crown Prince and Prime Minister Salman bin Hamad Al Khalifa.

He said the project reflected the GCC’s shared ambition to connect member states and improve mobility and trade by linking their economic and industrial hubs, ports and logistics centers.

He added that the project would create opportunities for safe, reliable, affordable and environmentally friendly transport services that meet development needs, serve the aspirations of future generations and strengthen economic integration among GCC states.

Albudaiwi said the agreement sets a common framework for member states to implement and operate the project in coordination with their national railway networks, while establishing mechanisms and a timetable to accelerate its completion.

Albudaiwi praised GCC leaders and transport ministers for their support of strategic regional projects, thanking Bahrain’s crown prince and prime minister for hosting the signing ceremony and officials for advancing the railway project.

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Mega Projects Drive Growth for Saudi Small and Medium Factories

A factory in Madinah’s industrial city. (SPA)
A factory in Madinah’s industrial city. (SPA)
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Mega Projects Drive Growth for Saudi Small and Medium Factories

A factory in Madinah’s industrial city. (SPA)
A factory in Madinah’s industrial city. (SPA)

Mega projects in Saudi Arabia are offering increasing opportunities for small and medium-sized factories to expand their businesses and integrate into local supply chains. This shift is accompanied by growing demand for industrial products and auxiliary services, including transport, warehousing, maintenance, and engineering services.

This demand has the potential to broaden the domestic manufacturing base, enabling factories to scale up capacity and upgrade their products rather than limiting their operations to meeting existing market needs. However, capitalizing on these opportunities remains contingent on the factories' ability to overcome financing and liquidity challenges, secure qualification from major corporations, and meet strict requirements for volume, specifications, and delivery schedules.

Experts speaking to Asharq Al-Awsat noted that integrating small and medium-sized industrial enterprises into supply chains requires tailoring opportunities to match their actual capacities. They also stressed the need to develop financing solutions that assist these companies in executing contracts, alongside creating avenues for them to build a track record that qualifies them to compete for larger orders.

A worker at a factory in Saudi Arabia. (SPA)

Mega projects expand domestic demand base

Dr. Abdullah Al-Salloum, a finance professor at Imam Mohammad Ibn Saud Islamic University, stated that small and medium-sized enterprises represent roughly 90 percent of global businesses, provide 60 to 70 percent of employment, and account for about 50 percent of the world's GDP.

Strengthening their role in industrial activity remains a primary developmental objective, he added.

He explained that Saudi Arabia is working to expand the contribution of these enterprises by developing the regulatory environment and national industrial strategies, improving logistics services, and reducing investment risks, as well as stimulating demand for local products through mega projects, value chains, procurement, and local content programs.

Al-Salloum added that the industrial ecosystem provides financing solutions and demand guarantees for national products, alongside qualification and operational support programs. He cited the industrial business accelerator affiliated with the Public Investment Fund, which he said received 350 applications over the past year.

These initiatives offer domestic manufacturing an opportunity to strengthen its presence in the local market and leverage that footing to expand into regional and international markets, he remarked.

The participation of small and medium-sized enterprises in the supply chains of mega projects is not limited to factories producing goods, but extends to supporting activities and services, such as transport, warehousing, maintenance, and engineering services, thereby expanding the base of beneficiaries from investment spending, he said.

The higher the capacity of local industry to meet the needs of these projects, the greater the share of spending that remains within the national economy, he explained.

He cited as an example the spending of the PIF and its subsidiaries on local content, which reached 207 billion riyals ($55.2 billion) during 2024, according to an announcement by the fund's governor, Yasir Al-Rumayyan. He explained that while this figure is not exclusive to small and medium enterprises or industrial factories, it reflects the volume of demand that local factories can leverage to expand their businesses and develop their products.

Visitors at the 2025 Saudi Industrial Expo. (Saudi Made)

Al-Salloum explained that recurring orders help factories raise their capacity utilization rates and distribute fixed costs across a larger number of units, thereby improving efficiency and enabling them to invest in equipment, technologies, and workforce training. It also provides them with a supply track record and practical experience that can be leveraged to attract new clients both within Saudi Arabia and abroad.

He said that reducing reliance on imports is linked to the capacity of local industry to produce a wider range of goods, components, and services that were previously imported, increasing domestic value-added, while acknowledging the continued need for certain imports during the initial stages of industrial development.

Al-Salloum added that the expansion of domestic production creates jobs across multiple fields, including technicians, engineers, and workers in quality control, operations, and maintenance.

The sustainability of these jobs depends on the factories' capacity to diversify their client base and avoid relying on a single project or entity, he remarked.

Liquidity and demand continuity present challenges for factories

Consulting engineer Abdulaziz Aba Arrous, CEO of A&BC for Safety Tools and Materials Manufacturing, stated that while the Saudi industrial sector has received government support and incentives that helped boost confidence in investment and expansion, factories still face daily challenges related to liquidity and demand continuity.

He explained that executing a large order requires the factory to purchase raw materials and pay wages and production costs before collecting its dues, creating a financing gap between the start of implementation and receiving the supply value. Furthermore, scaling up production capacity demands investment in equipment and recruiting qualified technical labor, as well as bearing continuous operational obligations.

Clarity regarding future demand, the availability of long-term contracts, and the regular settlement of dues are factors that help enterprises plan, expand, and utilize available support and incentives, rather than operating under intermittent orders that make it difficult to determine production and investment needs, he continued.

Aba Arrous said that opportunities for small and medium-sized factories to enter the supply chains of mega projects exist, but they vary depending on the nature of the product, the volume of demand, and the factory's ability to commit to specifications, quantities, and delivery schedules.

He added that the "Etimad" platform allows enterprises to view government tenders, while the preference for national products, in accordance with applicable regulations, contributes to boosting the competitiveness of local factories. However, the challenge with major corporations often begins at the stage of registration and qualification as an approved supplier, prior to accessing an actual supply opportunity.

Aba Arrous explained that while a factory may possess a quality product and adequate production capacity, it often faces lengthy qualification procedures, or orders with volumes and payment terms that exceed its financial capabilities. Therefore, he highlighted the importance of awarding small and medium-sized enterprises initial orders tailored to their capacities, with the volume of business scaling up based on execution quality and adherence to delivery schedules.

This approach allows the factory to prove its capability while enabling the buyer to assess its actual performance, he noted.

Qualification and financing requirements determine expansion opportunities

Regarding the obstacles preventing factories from securing supply contracts, Al-Salloum stated that financing challenges, production capacity, qualification requirements, and contract accessibility are interconnected.

A factory may possess a quality product but lack the experience necessary to qualify as a supplier, or it may secure a contract without having sufficient liquidity to execute it, he explained.

He pointed to the PIF's announcement in September 2026 of the launch of the "Tawreed" company, aimed at providing supply chain financing products, including early payment against approved invoices. He said that while these solutions can improve cash flows for factories, they do not replace the need for pre-invoice financing, which is essential for the enterprise to purchase raw materials and commence production.

Quality, safety, and compliance requirements are essential, but experience, financial solvency, and guarantee demands should align with the contract size and the nature of its risks, preventing qualification criteria from becoming a barrier to smaller factories, he added.

He also called for providing these enterprises with opportunities to prove their capabilities through smaller orders before moving to larger contracts.

A view inside of a Saudi factory. (Vision 2030)

For his part, Aba Arrous explained that small and medium-sized factories are capable of supplying various products to mega projects, including metal products, electrical components, packaging materials, and safety equipment, alongside maintenance services and custom manufacturing.

He noted that his company operates in the field of industrial safety equipment, and its products include personal protective equipment for industrial sector workers, such as flame- and heat-resistant clothing and cut-resistant gloves, whose specifications are determined according to the nature of the hazards and usage requirements.

He added that the proximity of local factories to clients gives them an advantage in monitoring their needs, managing variations in quantities and sizes, and responding to required modifications, compared to direct imports which may take longer in some cases. This proximity helps in developing products and building ongoing supply relationships with clients.

Client diversification ensures sustainable growth

Al-Salloum stressed that overreliance on mega projects or government initiatives could expose enterprises to single-customer concentration risks, making productivity improvements, cost controls, and customer base diversification essential for business sustainability, rather than tying the factory's future to specific contracts or a single entity.

The most significant developmental impact of small and medium factories participating in these projects extends to building more productive enterprises, developing worker skills, and forming a baseline of competitive national products, enabling local industry to sustain itself and grow after the projects conclude, he said.