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.



Gold Rises on Fed Rate Cut Expectations, Weaker Dollar

A one-ounce gold bar is displayed at Witter Coins on October 07 2025 in San Francisco. (AFP)
A one-ounce gold bar is displayed at Witter Coins on October 07 2025 in San Francisco. (AFP)
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Gold Rises on Fed Rate Cut Expectations, Weaker Dollar

A one-ounce gold bar is displayed at Witter Coins on October 07 2025 in San Francisco. (AFP)
A one-ounce gold bar is displayed at Witter Coins on October 07 2025 in San Francisco. (AFP)

Gold prices rose on Monday, driven by growing expectations of a US interest rate cut that pressured the dollar, ahead of a Federal Reserve policy meeting this week.

Spot gold rose 0.3% to $4,209.43 per ounce by 0851 GMT. US gold futures for December delivery fell 0.1% to $4,239.40 per ounce.

The dollar index edged lower, hovering near the one-month low reached on December 4, making dollar-priced gold more affordable for overseas buyers.

"Gold is benefiting from a weaker U.S. dollar and market participants expecting the Fed to cut interest rates this week," said UBS analyst Giovanni Staunovo.

Data last week showed that US consumer spending grew moderately in September. That reflected a slowdown in economic momentum amid rising costs and weakness in the labor market as private payrolls saw their steepest decline in over two-and-a-half years in November.

According to CME's FedWatch tool, markets are pricing in an 87% probability of a 25-basis-point rate cut at the Fed's December 9-10 policy meeting, following the release of weak economic data and dovish remarks from several Fed officials.

Lower interest rates typically bolster demand for non-yielding assets like gold.

"We still look for more rate cuts next year, which should push gold to $4,500/oz next year," added Staunovo.

Silver was up 0.3% at $58.43 per ounce, after hitting a record high of $59.32 on Friday.

"Silver is benefiting from the same factor as gold. Additionally the expectation of improving industrial demand as a result of monetary and fiscal stimulus helped silver to outperform gold in recent weeks," Staunovo said.

The white metal has doubled in price this year, driven by supply deficits and its designation as a critical mineral by the US.

Elsewhere, platinum gained 0.6% to $1,650.90 and palladium rose 1% to $1,471.26.


Saudi Arabia’s Mawani, ARASCO to Establish Logistics Center at King Abdulaziz Port

Saudi Arabia’s Mawani, ARASCO to Establish Logistics Center at King Abdulaziz Port
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Saudi Arabia’s Mawani, ARASCO to Establish Logistics Center at King Abdulaziz Port

Saudi Arabia’s Mawani, ARASCO to Establish Logistics Center at King Abdulaziz Port

The Saudi Ports Authority (Mawani) signed a contract with Arabian Agricultural Services Company (ARASCO) to establish a logistics center for storage and distribution at King Abdulaziz Port in Dammam, reported the Saudi Press Agency on Monday.

Valued at SAR200 million, the center will span 40,000 square meters and aims to bolster food security in the Kingdom while increasing port capacity.

The move aligns with the objectives of the National Transport and Logistics Strategy to solidify the Kingdom's position as a global logistics hub.

The contract further strengthens Mawani’s ongoing efforts to boost the efficiency of national supply chains and optimize operations at King Abdulaziz Port.

The investment is designed to bolster King Abdulaziz Port's capabilities in grain unloading and storage by constructing warehouses capable of handling up to 100,000 metric tons.


Iranian Products Featured at Arab, Global Expo in Makkah 

The Iranian pavilion at the Arab and Global Expo in Makkah. (SPA)
The Iranian pavilion at the Arab and Global Expo in Makkah. (SPA)
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Iranian Products Featured at Arab, Global Expo in Makkah 

The Iranian pavilion at the Arab and Global Expo in Makkah. (SPA)
The Iranian pavilion at the Arab and Global Expo in Makkah. (SPA)

The Iranian pavilion at the Arab and Global Expo in Makkah displayed a variety of Iranian products from numerous sectors, attracting a large number of visitors.

The pavilion featured food items, spices, sweets, and nuts, as well as textiles, leather goods, handicrafts, and handmade items, all representing Iranian heritage.

The pavilion's participation aims to strengthen trade relations with the Saudi and Gulf markets and open new channels for economic cooperation.

The exhibition provides an important platform to showcase the quality and competitiveness of Iranian industries.

The Arab and Global Expo in Makkah, running until December 12, is one of the most prominent trade events, bringing together companies and institutions from several countries to promote trade and present innovative and diverse products to visitors.