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Saudi Arabia Makes Great Strides in Global Logistics Services

Saudi Arabia has recently witnessed significant development in the logistics services industry (Asharq Al-Awsat)
Saudi Arabia has recently witnessed significant development in the logistics services industry (Asharq Al-Awsat)
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Saudi Arabia Makes Great Strides in Global Logistics Services

Saudi Arabia has recently witnessed significant development in the logistics services industry (Asharq Al-Awsat)
Saudi Arabia has recently witnessed significant development in the logistics services industry (Asharq Al-Awsat)

Saudi Arabia has jumped 17 ranks in the World Bank’ Logistics Performance Index (LPI) 2023, which allows it to attract more investments, and increase the volume of exports, imports, and international trade, experts told Asharq Al-Awsat.

The Kingdom’s progress in the international index came after achieving large leaps in several indicators, namely: logistical efficiency, tracking and tracing, timing, customs, infrastructure, and maritime freight.

Nashmi Al-Harbi, a logistics expert, told Asharq Al-Awsat that with unlimited empowerment and support from the government, Saudi Arabia will be able to reach the top ten positions, based on its development of the basic pillars of the LPI, namely: customs and ease of procedures, diversity, and transportation means, as well as facilities infrastructure, such as ports, airports, railways and land lines.

He also pointed to the initiatives recently launched by Crown Prince Mohammad bin Salman, including the establishment of four economic zones that are aimed at attracting major foreign investments and companies and creating many job and commercial opportunities for the local market.

For his part, Economist Nasser Al-Qarawi told Asharq Al-Awsat that the Kingdom’s jump in the LPI came as a result of a national strategic plan that seeks to transform the Kingdom into an international logistical business hub.

Saudi Arabia launched the National Strategy for Transport and Logistics Services, with the aim of increasing the sector’s contribution to the national GDP from 6 to 10 percent by 2030.

Minister of Transport and Logistic Services Eng. Saleh Bin Nasser Al-Jasser announced last week that Saudi Arabia has jumped 17 ranks in the World Bank’ Logistics Performance Index.

This jump was achieved within the support and empowerment of Crown Prince and Prime Minister Mohammed bin Salman, the minister said, adding that the system will continue, through the directives of Saudi Arabia’s leadership, to move forward to consolidate the Kingdom’s position as a global logistic hub, in accordance with the national strategy for transportation and logistics services.

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Dollar Rises ahead of Fed; Turkish Lira Drop Reins in G10 Currencies

Banknotes of Japanese yen are seen in this illustration picture taken September 22, 2022. REUTERS/Florence Lo/Illustration/File Photo
Banknotes of Japanese yen are seen in this illustration picture taken September 22, 2022. REUTERS/Florence Lo/Illustration/File Photo
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Dollar Rises ahead of Fed; Turkish Lira Drop Reins in G10 Currencies

Banknotes of Japanese yen are seen in this illustration picture taken September 22, 2022. REUTERS/Florence Lo/Illustration/File Photo
Banknotes of Japanese yen are seen in this illustration picture taken September 22, 2022. REUTERS/Florence Lo/Illustration/File Photo

The dollar rallied on Wednesday ahead of the Federal Reserve's decision on interest rates, but retreated from the day's highs after markets stabilized from an early shock caused by the detention

of Turkish President Tayyip Erdogan's main rival.

Traders are also digesting the Bank of Japan's earlier decision to hold interest rates steady, while the Fed's policy decision later will be crucial for investors eager to know what the central bank makes of Trump's policies and their impact on the US economy, and how that affects the rate outlook.

Fed policymakers are widely expected to keep rates on hold, and will also release new economic projections at the conclusion of the meeting later in the day, Reuters reported.

Feeding into an earlier rally in the dollar was news out of Turkey which saw the lira briefly tumble by the most in a day on record, rippling through major currencies as investors shifted into safe-haven assets.

By 1226 GMT, the euro was down 0.3% versus the dollar to $1.091, having fallen as much as 0.6% earlier. Even so, it remains near a five-month high of $1.0955 scaled in the previous session.

"The news from Turkey is having an impact on G10 currency markets and risk appetite in general," said Jane Foley, head of FX strategy at Rabobank.

"But I would think some of the initial impact of what's happened will begin to filter out from some of the euro trade once the market has become a bit more accustomed to it."

The yen weakened against the dollar, which rose 0.3% to 149.805 in volatile trade as investors mulled the BOJ decision to hold rates steady and comments from Governor Kazuo Ueda .

The widely expected BOJ decision underscored policymakers' preference to spend more time gauging how mounting global economic risks from higher US tariffs could affect Japan's fragile recovery.

"The decision to leave monetary policy unchanged itself is not a surprise, so its impact on exchange rates is limited. However, the earlier-than-usual timing of the announcement seems to have led financial markets to initially interpret that the BOJ (did not consider) bringing forward a rate hike," said Hirofumi Suzuki, chief FX strategist at SMBC.

Adding to nervousness among investors, Israeli airstrikes pounded Gaza overnight, while US President Donald Trump and Russian President Vladimir Putin failed to reach an agreement on a Ukraine ceasefire.

The more risk-sensitive currencies edged lower, with sterling down 0.2% at $1.29795, not far from the previous session's four-month high of $1.3010, while the Australian and New Zealand dollars fell 0.4% and 0.5%, respectively.

Against a basket of currencies, the dollar ticked up 0.2% to 103.55, coming off a five-month low of 103.19 on Tuesday.

The dollar has fallen nearly 4% for the month, pressured by Trump's erratic approach to tariffs and as fears mount of a recession in the world's largest economy.

Traders are currently pricing in nearly 60 basis points of Fed rate cuts by the year end.

"The March FOMC meeting will likely be all about policy uncertainty. The Fed will almost certainly stay on hold, emphasising patience over panic," said analysts at Bank of America Securities.

"The (Summary of Economic Projections) forecasts and distribution of risks are both likely to reflect stagflation: weaker growth and higher inflation."