عربي English Türkçe اردو فارسى
Logo
Latest News
Business

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)
TT
TT

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.

Most Viewed

 
 
Business

Dollar Resumes Upward Trend, Euro Hits Lowest since Nov 2022

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
TT
TT

Dollar Resumes Upward Trend, Euro Hits Lowest since Nov 2022

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

The dollar hit new multi-month highs against the euro and the pound on Thursday, the first day of 2025 trading, as it built on last year's strong gains on expectations US interest rates will remain high relative to peers.

The euro fell to as low as $1.0314, its lowest since November 2022, down around 0.3% on the day. It is now down nearly 8% since its late September highs above $1.12, one major victim of the dollar's recent surge.

Traders anticipate deep interest rate cuts from the European Central Bank in 2025, with markets pricing in at least four 25 basis point cuts, while not being certain of even two such moves from the US Federal Reserve, Reuters reported.

The dollar was hitting milestones across the board and the pound was last down 0.65% at $1.2443, its lowest since April, with its fall accelerating after it broke through resistance around $1.2475.

"It's more of the same at the start of the new calendar year with the dollar continuing to extend its advances in anticipation of Trump putting in place friendly policies at the start of his term," said Lee Hardman, senior currency analyst at MUFG.

US President-elect Donald Trump's policies are widely expected to not only boost growth but also add to upward price pressure. That will lead to a Fed cautious about cutting rates too much further, in turn underpinning US Treasury yields and boost dollar demand.

A weaker growth outlook outside the US, conflict in the Middle East and the Russia-Ukraine war have also added to demand for the dollar.

The dollar also reversed an early loss on Thursday to climb against the Japanese yen, and was last up 0.17% at 157.26.

It reached a five-month high above 158 yen in late December, potentially putting pressure on the Bank of Japan, which is expected to raise interest rates early this year, but possibly not immediately.

"If dollar/yen were to break above 160 ahead of the next BOJ meeting, that could be a catalyst for the BOJ to hike in January rather than wait until March," said Hardman.

"Though for now markets are leaning towards March after the dovish comments from (governor Kazuo) Ueda at his last press conference."

Even those who are more cautious about sustained dollar strength think it could take a long time to play out.

"The dollar may be vulnerable – but only if the US data confound market expectations that the Fed doesn’t cut rates more than once in the first half of this year, and not by more than 50bp in the whole of 2025," said Kit Juckes chief FX strategist at Societe Generale in a note.

"There's a good chance of that happening, but it seems very unlikely that cracks in US growth will appear early in the year – hence my preference for taking any bearish dollar thoughts with me into hibernation until the weather improves."

China's yuan languished at 14-month lows as worries about the health of the world's second-biggest economy, the prospect of US import tariffs from the Trump administration and sliding local yields weighed on investor sentiment.

Elsewhere, the Swiss franc, another victim of the recent dollar strength, gave back early gains to last trade flat at 0.90755 per dollar.

The Australian and New Zealand dollars, however, managed to break away from two-year lows touched on Tuesday. The Aussie was 0.36% higher at $0.6215 having dropped 9% in 2024, its weakest yearly performance since 2018.

The kiwi rose 0.47% to $0.5614.