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Head of SAL to Asharq Al-Awsat: We Invest $399 Mn in Infrastructure

SAL facilities in Jeddah (Asharq AL-Awsat)
SAL facilities in Jeddah (Asharq AL-Awsat)
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Head of SAL to Asharq Al-Awsat: We Invest $399 Mn in Infrastructure

SAL facilities in Jeddah (Asharq AL-Awsat)
SAL facilities in Jeddah (Asharq AL-Awsat)

The Saudi Logistics Services (SAL) allocated $399 million worth of investments to implement a series of infrastructure projects by the end of 2027, announced CEO Faisal al-Beddah.

The investment aims to enhance the company's presence and position as a leading company in cargo handling, logistics services, and storage.

It also supports the efforts to establish the Kingdom as a global logistics hub and achieve the goals of Vision 2030.

Beddah told Asharq Al-Awsat that these investments align with the company's aspirations to handle 4.5 million tons of cargo through expansion plans for the company's stations at Riyadh and Jeddah airports until the end of 2027.

The company plans to develop its assets and facilities at the existing facilities in Jeddah, Riyadh, and Dammam.

Jeddah Airport

Beddah presented the company's investment plan for the second phase of development at the Jeddah Airport.

It includes the construction of a storage warehouse with an area exceeding 24,000 square meters within a site extending over 70,000 square meters.

Jeddah airport serves as the company's key ground handling station after undergoing development and expansion in 2021.

The expansion phase of the station's quality and ground handling services covers an area of 40,000 square meters.

It includes various cargo facilities equipped with state-of-the-art facilities, complying with international standards, and automated handling systems.

The services cover export, import, and various types of shipments, including medical, food, high-value, hazardous, and transit.

The station's development will increase the cargo facilities' handling capacity to approximately 1.1 million tons annually.

It is also expected to serve passenger air transportation, with an anticipated increase in transportation movement due to the growing number of flights for Hajj and Umrah travelers.

Express Mail

The official mentioned that among SAL's investments is the launch of the Express Mail station, a new facility for shipping services at Jeddah airport, providing distinguished shipping solutions that meet the specific needs of the e-commerce sector.

The facility will further enhance SAL's position as a prominent facility in the logistics solutions that serve the e-commerce sector, which will positively impact the growth of companies conducting their activities through e-platforms.

Riyadh Airport

The development of SAL's facility at Riyadh Airport includes renovating an operational facility spanning an area of 48,000 square meters within a site of 70,000 square meters.

According to Beddah, the renovations will include structural, electrical, and mechanical constructions and the complete replacement of the cargo handling system with an advanced one.

The development plan for the facilities also includes implementing functional changes in the Phase 1 warehouse to continue the main objective for Riyadh Airport.

Dammam

Beddah added that the plan includes, in its final phase, the development of Dammam Airport to enhance ground handling services in the air cargo sector in the Kingdom.

The building is undergoing limited-scale renovation plans to improve the working environment and enhance operational functions.

Like Riyadh Airport, Dammam Airport's improvements, and renovations will cover all structural, electrical, and mechanical constructions.

However, the main difference lies in the scope of the renovation and restoration works, which will be limited in the area according to a deliberate methodology.

He told Asharq Al-Awsat that the airport would be equipped with modern machines like those used in Jeddah and Riyadh airports.

Robots

As part of its investment strategy, SAL is adopting automated operating systems and digital transformation, which will bring about a qualitative leap within the logistics services sector, including robots and intelligent sorting solutions.

Beddah explained that it would improve SAL's warehouse management, streamline order fulfillment processes, reduce error rates, ensure fast and efficient order handling, and ultimately achieve high customer satisfaction.

SAL relies on advanced tracking and tracing systems while providing customers with real-time information and detailed analytics to monitor their shipments at various stages of the delivery process.

He indicated that the company had signed agreements with Microsoft Arabia to support its ambitions in enhancing digital transformation initiatives in the logistics sector.

Sector Growth

According to Beddah, through its extensive network of operations, the company has played a pivotal role in driving the growth and development of the logistics services sector in the Kingdom.

SAL manages over 162,000 square meters of advanced warehouses and storage facilities at strategic locations across 18 airports in Saudi Arabia.

All facilities have the latest advanced technological solutions and automated operating systems.

Beddah further stated that the company possesses a large fleet of vehicles and operates a vast network of distribution centers, ensuring its ability to execute delivery operations quickly and with high reliability across different regions.

Market share

The market share of SAL is estimated at 95 percent in the Saudi market for air freight, and it provides integrated services and solutions that serve the logistical sector.

 

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Business

UN's FAO: World Food Prices Fall for 3rd Month in November

FILE PHOTO: Prices of food are displayed at the Borough Market in London, Britain May 22, 2024. REUTERS/Maja Smiejkowska/File Photo
FILE PHOTO: Prices of food are displayed at the Borough Market in London, Britain May 22, 2024. REUTERS/Maja Smiejkowska/File Photo
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UN's FAO: World Food Prices Fall for 3rd Month in November

FILE PHOTO: Prices of food are displayed at the Borough Market in London, Britain May 22, 2024. REUTERS/Maja Smiejkowska/File Photo
FILE PHOTO: Prices of food are displayed at the Borough Market in London, Britain May 22, 2024. REUTERS/Maja Smiejkowska/File Photo

World food commodity prices fell for a third consecutive month in November, with all major staple foods except cereals showing a decline, the United Nations' Food and Agriculture Organization said on Friday.

The FAO Food Price Index, which tracks a basket of globally traded food commodities, averaged 125.1 points in November, down from a revised 126.6 in October and the lowest since January, Reuters reported.

The November average was also 2.1% below the year-earlier level and 21.9% down from a peak in March 2022 following Russia's full-scale invasion of Ukraine, the FAO said.

The agency's sugar price reference fell 5.9% from October to its lowest since December 2020, pressured by ample global supply expectations, while the dairy price index dropped 3.1% in a fifth consecutive monthly decline, reflecting increased milk production and export supplies.

Vegetable oil prices fell 2.6% to a five-month low, as declines for most products including palm oil outweighed strength in soy oil.

Meat prices declined 0.8%, with pork and poultry leading the decrease, while beef quotations stabilized as the removal of US tariffs on beef imports tempered recent strength, the FAO said.

In contrast, the FAO's cereal price benchmark rose 1.8% month-on-month. Wheat prices increased due to potential demand from China and geopolitical tensions in the Black Sea region, while maize prices were supported by demand for Brazilian exports and reports of weather disruption to field work in South America.

In a separate cereal supply and demand report, the FAO raised its global cereal production forecast for 2025 to a record 3.003 billion metric tons, compared with 2.990 billion tons projected last month, mainly due to increased wheat output estimates.

Forecast world cereal stocks at the end of the 2025/26 season were also revised up to a record 925.5 million tons, reflecting expectations of expanded wheat stocks in China and India as well as higher coarse grain stocks in exporting countries, the FAO said.

Business

World Bank Forecasts 4.3% Growth for Saudi Economy, Supported by Non-Oil Activities

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat
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World Bank Forecasts 4.3% Growth for Saudi Economy, Supported by Non-Oil Activities

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat

The World Bank affirmed on Thursday that Saudi Arabia's economy has gained significant momentum for 2026-2027, driven by robust non-oil sector expansion under Vision 2030.

In a report titled “The Gulf’s Digital Transformation: A Powerful Engine for Economic Diversification,” the World Bank said growth is expected to persist in the Kingdom with non-oil activities expanding by 4% on average.

The report lifted its forecast for Saudi Arabia’s real GDP growth to 3.8% in 2025 compared to a 3.2% last October.

The forecast represents a major upward revision affirming the resilience of the Saudi economy and its ability to absorb external volatility. It also indicates growing confidence in the effectiveness of ongoing structural reforms within Vision 2030.

On Tuesday, Saudi Arabia approved its state budget for 2026, projecting real GDP growth of 4.6% in 2026.

The report showed that in the Kingdom, economic momentum is strengthening across oil and non-oil sectors with non-oil activities expanding by 4% on average and oil activities expanding by 5.4%, bringing overall real growth to an average of 4.3%.

It said oil activities grew by 1.7% y/y in the first half of 2025, benefiting from the phase-out of OPEC+ voluntary production cuts starting in April 2025.

At the financial level, the fiscal deficit between 2025 and 2027 is projected to remain at an average of 3.8% of GDP.

Meanwhile, the current account balance slightly recovered, settling at 0.5% of GDP in the first quarter of 2025 against -2.6% in the second half of 2024.

The report said real GDP growth remained stable at 3.6% y/y in the first half of 2025, thanks to the stabilization of the oil sector and sustained non-oil growth.

Non-oil activities expanded by 4.8% over the period, in line with the performance of 2024 while non-oil growth was driven by the wholesale, retail trade, restaurants, and hotels sector (+7.5% y/y in the first half of 2025), consolidating the role of hospitality and tourism as engines of economic diversification.

The report also indicated that oil activities grew by 1.7% y/y in the first half of 2025, benefiting from the phase-out of OPEC+ voluntary production cuts starting in April 2025.

These trends are expected to persist in 2026-2027, with non-oil activities expanding by 4% on average and oil activities expanding by 5.4%, bringing overall real growth to an average of 4.3%.

Job Market and Inflation
The report said the labor market mirrors the stabilization of the real economy and is rapidly becoming more inclusive to women.

Overall unemployment decreased by 0.7 point between the first quarter of 2024 and the first quarter of 2025, with the female unemployment rate dropping from 11.8% to 8.1% over the same period.

Also, inflation remained low and stable in Saudi Arabia, settling at an average of 2.2% in the first half of 2025.

However, price increases have been concentrated in the housing and utilities sector as rental prices have become a key issue, largely because rental supply has failed to match demographic growth, especially in Riyadh.

While this reflects the government’s efforts to dynamize the Kingdom’s urban centers, the price increases prompted the government to freeze rental prices in Riyadh for the next five years, as anticipated increases in housing supply should help control rental prices.

Finally, the report said Saudi Arabia’s external position stabilized in the second half of 2024 and the first quarter of 2025.

Although net foreign direct investment has remained relatively stable, the World Bank has emphasized that recent changes in foreign ownership regulations in Saudi Arabia, coupled with continued structural reforms, are positive steps to attract greater flows of foreign direct investment (FDI).

Business

Visa Relocates European Headquarters to London's Canary Wharf

FILE PHOTO: A drone view of London's Canary Wharf financial district, two days before the government presents its critical pre-election budget, in London, Britain March 3, 2024. REUTERS/Yann Tessier/File Photo
FILE PHOTO: A drone view of London's Canary Wharf financial district, two days before the government presents its critical pre-election budget, in London, Britain March 3, 2024. REUTERS/Yann Tessier/File Photo
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Visa Relocates European Headquarters to London's Canary Wharf

FILE PHOTO: A drone view of London's Canary Wharf financial district, two days before the government presents its critical pre-election budget, in London, Britain March 3, 2024. REUTERS/Yann Tessier/File Photo
FILE PHOTO: A drone view of London's Canary Wharf financial district, two days before the government presents its critical pre-election budget, in London, Britain March 3, 2024. REUTERS/Yann Tessier/File Photo

Visa is relocating its European headquarters to London's Canary Wharf financial district, the Canary Wharf Group said on Friday.

The firm is leasing 300,000 square feet on a 15-year term at One Canada Square, and is set to relocate from Paddington in the summer of 2028, the group added.

Canary Wharf Group, which runs the wider financial district and is co-owned by QIA and Canada's Brookfield, was hit hard by the pandemic-induced fall in office demand.

The area is now enjoying a rebound as more firms push staff to return to office, Reuters reported.

"Canary Wharf continues to attract a diverse range of global businesses. We are delighted to welcome Visa who have chosen the Wharf for their European headquarters as the best location to support their business growth," Shobi Khan, Canary Wharf Group CEO, said.

JPMorgan Chase last week unveiled a plan to build a tower in the Canary Wharf financial district that will contribute 9.9 billion pounds ($13.2 billion) over six years to the local economy - including the cost of construction - and create 7,800 jobs.

Qatar's sovereign wealth fund is revising plans for a revamp of its HSBC skyscraper in the east London district to retain more office space, Reuters reported in November.