The Saudi Railway Company (SAR) is preparing to launch a specialized program to localize the railway industry in the coming days. This comes as SAR surpassed 50% local spending in 2023, with plans to reach 60% by 2025 through partnerships with industry stakeholders.
In remarks to Asharq Al-Awsat, CEO of SAR Dr. Bashar Al Malik said the program will be unveiled during the Saudi International Railway Conference, set to take place on November 20–21 in Riyadh.
Held under the patronage of Eng. Saleh Al-Jasser, Minister of Transport and Logistics Services and Chairman of SAR, the inaugural edition of the conference will showcase the latest advancements and innovations in the railway sector at both local and international levels.
According to Al Malik, the conference will outline specific objectives and present promising investment opportunities in the railway sector. These include establishing manufacturing facilities within Saudi Arabia, localizing services, and transferring expertise through partnerships with leading global railway companies. The initiative aims to empower the private sector, support small and medium enterprises (SMEs), and invest in cutting-edge technologies to ensure sustainability in operations.
He further explained that SAR has implemented numerous initiatives in recent years in collaboration with public and private entities to localize industries related to the operation and maintenance of rail infrastructure. This effort has significantly increased local spending, enhanced private sector participation, and created over 10,000 direct and indirect jobs, with a Saudization rate exceeding 88%.
Al Malik highlighted Saudi Arabia’s leadership in adopting electric high-speed trains with zero carbon emissions, such as the Haramain High-Speed Railway. Additionally, SAR has conducted hydrogen train trials, marking the first such initiative in the Middle East and Africa. This reflects the company’s commitment to the Saudi Green Initiative, he remarked.
According to Al Malik, rail transport represents a sustainable and environmentally friendly option, significantly reducing the number of trucks and cars on highways. He stressed that this shift directly contributes to lowering harmful carbon emissions, protecting the environment, preserving road infrastructure, and improving traffic safety.
Moreover, Al Malik emphasized the critical role of railways as a key enabler of logistics in many countries, facilitating cargo transportation, promoting trade, and driving economic growth.
In Saudi Arabia, railways play a vital role in maintaining the smooth flow of global trade, especially during geopolitical challenges, he told Asharq Al-Awsat.
He revealed that Saudi trains efficiently transported large volumes of containers and goods from the Red Sea after many shipping lines rerouted their vessels to ports in the Eastern Province, such as Dammam and Jubail, which are connected to SAR’s rail network. These shipments were then seamlessly transported to Riyadh’s dry port via SAR freight trains.
Al Malik further noted that Saudi Arabia is developing two flagship projects: the Land Bridge and the GCC Railway Link, which he said will play a pivotal role in achieving Saudi Arabia’s Vision 2030 goal of becoming a global logistics hub connecting three continents.
