Saudi Arabia to Develop Seven Logistics Zones in Eastern Province

A view of the logistics forum held by the Asharqia Chamber in Saudi Arabia. (Asharq Al-Awsat)
A view of the logistics forum held by the Asharqia Chamber in Saudi Arabia. (Asharq Al-Awsat)
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Saudi Arabia to Develop Seven Logistics Zones in Eastern Province

A view of the logistics forum held by the Asharqia Chamber in Saudi Arabia. (Asharq Al-Awsat)
A view of the logistics forum held by the Asharqia Chamber in Saudi Arabia. (Asharq Al-Awsat)

The head of Saudi Arabia’s Transport General Authority, Rumaih Al-Rumaih, revealed on Monday that the national transport strategy aims to bring the Kingdom’s performance index to the world’s top ten, adding that seven logistics zones will be developed in the Eastern Province.

In statements at the Asharqia Chamber’s Logistics Forum 2021, Al-Rumaih said that the national strategy paves the way for a promising future that includes mega projects and ambitious goals that will further consolidate the Kingdom’s position as a global logistics hub connecting three continents.

He stressed that focus is directed towards building the needed regulatory infrastructure, realizing the automation of procedures, establishing partnerships between the private and public sectors, and fighting pollution.

The Transport General Authority is working to develop national competencies by providing training channels and institutes specialized in port, aviation, and railway activities, the latest of which is the “Logistics Academy,” he added.

Saudi Arabia’s logistics strategy aims to raise the level of service performance from 55th in the world to reach the level of the top 10 countries by 2030. It also aims to raise the level of the logistics sector’s contribution to development from 6 to 10%.

Undersecretary for Logistics Services at the Ministry of Transport and Logistics, Louay Mashabi stated that Saudi Arabia’s logistics sector is redefining itself at the global level.

He disclosed that the ministry has provided several products in this field, most notably the establishment of the Logistics Services Agency that works to standardize licensing.

There are 150 logistics-related businesses, which will be integrated into 80 activities, revealed Mashabi.

He pointed out that 30 international and local companies have expressed their willingness to work in warehouse management, customs clearance, and transportation locally in the Kingdom.



OPEC Again Cuts 2024, 2025 Oil Demand Growth Forecasts

The OPEC logo. Reuters
The OPEC logo. Reuters
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OPEC Again Cuts 2024, 2025 Oil Demand Growth Forecasts

The OPEC logo. Reuters
The OPEC logo. Reuters

OPEC cut its forecast for global oil demand growth this year and next on Tuesday, highlighting weakness in China, India and other regions, marking the producer group's fourth consecutive downward revision in the 2024 outlook.

The weaker outlook highlights the challenge facing OPEC+, which comprises the Organization of the Petroleum Exporting Countries and allies such as Russia, which earlier this month postponed a plan to start raising output in December against a backdrop of falling prices.

In a monthly report on Tuesday, OPEC said world oil demand would rise by 1.82 million barrels per day in 2024, down from growth of 1.93 million bpd forecast last month. Until August, OPEC had kept the outlook unchanged since its first forecast in July 2023.

In the report, OPEC also cut its 2025 global demand growth estimate to 1.54 million bpd from 1.64 million bpd, Reuters.

China accounted for the bulk of the 2024 downgrade. OPEC trimmed its Chinese growth forecast to 450,000 bpd from 580,000 bpd and said diesel use in September fell year-on-year for a seventh consecutive month.

"Diesel has been under pressure from a slowdown in construction amid weak manufacturing activity, combined with the ongoing deployment of LNG-fuelled trucks," OPEC said with reference to China.

Oil pared gains after the report was issued, with Brent crude trading below $73 a barrel.

Forecasts on the strength of demand growth in 2024 vary widely, partly due to differences over demand from China and the pace of the world's switch to cleaner fuels.

OPEC is still at the top of industry estimates and has a long way to go to match the International Energy Agency's far lower view.

The IEA, which represents industrialised countries, sees demand growth of 860,000 bpd in 2024. The agency is scheduled to update its figures on Thursday.

- OUTPUT RISES

OPEC+ has implemented a series of output cuts since late 2022 to support prices, most of which are in place until the end of 2025.

The group was to start unwinding the most recent layer of cuts of 2.2 million bpd from December but said on Nov. 3 it will delay the plan for a month, as weak demand and rising supply outside the group maintain downward pressure on the market.

OPEC's output is also rising, the report showed, with Libyan production rebounding after being cut by unrest. OPEC+ pumped 40.34 million bpd in October, up 215,000 bpd from September. Iraq cut output to 4.07 million bpd, closer to its 4 million bpd quota.

As well as Iraq, OPEC has named Russia and Kazakhstan as among the OPEC+ countries which pumped above quotas.

Russia's output edged up in October by 9,000 bpd to about 9.01 million bpd, OPEC said, slightly above its quota.