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Saudi Arabia to Establish 18 Logistics Zones with Investments Exceeding $2.6 Billion

Saudi Minister of Transport and Logistics Services Eng. Saleh Al-Jasser speaks at the conference. (Asharq Al-Awsat)
Saudi Minister of Transport and Logistics Services Eng. Saleh Al-Jasser speaks at the conference. (Asharq Al-Awsat)
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Saudi Arabia to Establish 18 Logistics Zones with Investments Exceeding $2.6 Billion

Saudi Minister of Transport and Logistics Services Eng. Saleh Al-Jasser speaks at the conference. (Asharq Al-Awsat)
Saudi Minister of Transport and Logistics Services Eng. Saleh Al-Jasser speaks at the conference. (Asharq Al-Awsat)

Saudi Minister of Transport and Logistics Services Eng. Saleh Al-Jasser underlined on Sunday the remarkable progress in the Kingdom's port network, with an increase of 231.7 points on the UNCTAD Maritime Connectivity Index for 2024. He also disclosed the signing of contracts to develop 18 logistics zones with investments exceeding SAR 10 billion ($2.6 billion).

The announcement was made during the inauguration of the sixth edition of the Supply Chain and Logistics Services Conference in Riyadh, which aims to enhance integration across different transport modes and improve logistics efficiency as part of Saudi Arabia’s efforts to position itself as a global logistics hub.

The two-day conference, held from December 15–16, brought together international experts and specialists to share insights on best practices and strategies to enhance supply chain performance. A new platform was also introduced to empower women in the logistics sector by providing training and development opportunities.

Al-Jasser emphasized the Ministry’s plan to increase the number of logistics zones in Saudi Arabia from the current 22 to 59 by 2030. He highlighted the successful implementation of the first phase of logistics integration, linking ports, airports, and railways through streamlined protocols and mechanisms. This integration ensures smooth freight movement across sea, air, and land, further solidifying Saudi Arabia’s status as a global logistics hub under Vision 2030.

Speaking at a panel discussion entitled “The Role of Logistics in Enhancing Supply Chain Performance and Global Competitiveness under Vision 2030”, Al-Jasser revealed that the Saudi Railway Company (SAR) is working on doubling and expanding the Northern Train line. The project, with investments exceeding SAR 5 billion ($1.3 billion), is designed to support the growing mining sector in Saudi Arabia.

Minister of Industry and Mineral Resources Bandar Alkhorayef announced that Saudi Arabia achieved SAR 61 billion ($16.2 billion) in re-export revenues in 2023, marking a 23% increase from the previous year. He attributed this success to strong infrastructure and collaboration among relevant entities, which have ensured the provision of efficient, high-quality services.

Alkhorayef added that the Saudi Arabian Mining Company (Ma’aden) exported SAR 7 billion ($1.8 billion) worth of products in 2023. Saudi Arabia currently ranks fourth globally in fertilizer exports, with ambitions to become the global leader in the future.

Eng. Suleiman Al-Rubaian, Vice President of Procurement and Supply Chain Management at Aramco, highlighted the iktva program, which focuses on maximizing the added value of Saudi supply chains. The program has built a network of over 3,000 local suppliers and service providers, fortifying domestic supply chains.

The first day of the conference witnessed the signing of 86 agreements aimed at improving supply chain performance. The event also includes an exhibition featuring 65 international and local companies, as well as eight specialized workshops.

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Aljadaan: Emerging Markets Account for 70% of Global Growth

Al-Jadaan speaking to the attendees at the "AlUla Conference for Emerging Market Economies" (Asharq Al-Awsat
Al-Jadaan speaking to the attendees at the "AlUla Conference for Emerging Market Economies" (Asharq Al-Awsat
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Aljadaan: Emerging Markets Account for 70% of Global Growth

Al-Jadaan speaking to the attendees at the "AlUla Conference for Emerging Market Economies" (Asharq Al-Awsat
Al-Jadaan speaking to the attendees at the "AlUla Conference for Emerging Market Economies" (Asharq Al-Awsat

Saudi Minister of Finance Mohammed Aljadaan stressed Sunday that the world economy is going through a “profound transition,” saying emerging markets and developing economies now account for nearly 60 percent of the global Gross Domestic Product (GDP) in purchasing power terms and over 70 percent of global growth.

In his opening remarks at the AlUla Conference for Emerging Market Economies, organized by the Saudi Ministry of Finance and the IMF in AlUla, the minister said these economies have become an increasingly important driver of global growth with their share of global economy more than doubling since 2010.

“Today, the 10 emerging economies in the G20 alone account for more than half of the world growth. Yet, they face a more complex and fragmented environment, elevated debt levels, slower trade growth and increasing exposure to geopolitical shocks.”

“Unfortunately, more than half of low income countries are either in or at the risk of debt distress. At the same time global trade growth has slowed at around half of what it was pre the pandemic,” Aljadaan added.

The Finance Minister stressed that the Saudi experience over the past decade has reinforced three lessons that may be relevant to the discussions at the two-day conference, which brings together a select group of ministers and central bank governors, leaders of international organizations, leading investors and academics.

“First, macroeconomic stability is not the enemy of growth. It is actually the foundation,” he said.

“Structural reforms deliver results only when institutions deliver. So there is no point of reforming ... if the institutions are unable to deliver,” he stated.

Finally, he said that “international cooperation matters more, not less, in a fragmented world.”

Business

Georgieva from AlUla: Growth Still Lacks Pre-pandemic Levels

Kristalina Georgieva speaking to attendees at the second edition of the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat)
Kristalina Georgieva speaking to attendees at the second edition of the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat)
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Georgieva from AlUla: Growth Still Lacks Pre-pandemic Levels

Kristalina Georgieva speaking to attendees at the second edition of the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat)
Kristalina Georgieva speaking to attendees at the second edition of the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat)

International Monetary Fund (IMF) Managing Director Kristalina Georgieva said Sunday that world growth still lacks pre-pandemic levels, expressing concern as she expected more shocks amid high spending and rising debt levels in many countries.

Georgieva spoke at the AlUla Conference for Emerging Market Economies, organized by the Saudi Ministry of Finance and the IMF in AlUla.

The two-day conference brings together a select group of ministers and central bank governors, leaders of international organizations, leading investors and academics to deliberate on policies to global stability, prosperity, and multilateral collaboration.

Georgieva said that the conference was launched last year in recognition of the growing role of emerging market economies in a world of sweeping transformations.

“I came out of this gathering .... With a sense of hope for the pragmatic attitude and determination to pursue good policies and build strong institutions,” she said.

Georgieva stressed that “good policies pay off,” and said that growth rates across emerging economies reached four percent this year, exceeding by a large margin those of advanced economies that are around 1.5 percent.

Business

Saudi Arabia’s flynas, Syrian Civil Aviation Authority Partner to Launch 'flynas Syria'

The new airline will operate commercial air transport services in accordance with approved regulations and standards (flynas)
The new airline will operate commercial air transport services in accordance with approved regulations and standards (flynas)
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Saudi Arabia’s flynas, Syrian Civil Aviation Authority Partner to Launch 'flynas Syria'

The new airline will operate commercial air transport services in accordance with approved regulations and standards (flynas)
The new airline will operate commercial air transport services in accordance with approved regulations and standards (flynas)

Saudi budget carrier flynas has signed an agreement with the Syrian General Authority of Civil Aviation and Air Transport to establish a new commercial airline under the name "flynas Syria," with operations scheduled to begin in the fourth quarter of 2026.

Saturday’s agreement comes within the framework of bilateral cooperation between Saudi Arabia and Syria, as well as the strategic investment agreements between the two countries, coordinated with the Saudi Ministry of Investment and the Syrian General Authority of Civil Aviation and Air Transport.

The new airline will operate commercial air transport services in accordance with approved regulations and standards, meeting the highest safety and aviation security requirements. All licensing and operational procedures will be completed in coordination with the relevant authorities.

The carrier will be established as a joint venture, with 51% ownership held by the Syrian General Authority of Civil Aviation and Air Transport and 49% by flynas.

The new airline will operate flights to several destinations across the Middle East, Africa, and Europe. This expansion aims to bolster air traffic to and from Syria, enhance regional and international connectivity, and meet growing demand for air travel.

"This step is part of our commitment to supporting high-quality cross-border investments. The aviation sector is a key enabler of economic development, and the establishment of 'flynas Syria' serves as a model for constructive investment cooperation,” said Saudi Minister of Investment Khalid Al-Falih.

“This partnership enhances economic integration and market connectivity and supports development goals by advancing air transport infrastructure, ultimately serving the mutual interests of both nations and promoting regional economic stability,” he added.

President of the Syrian General Authority of Civil Aviation and Air Transport Omar Hosari also stated that the establishment of flynas Syria represents a strategic step within a comprehensive national vision aimed at rebuilding and developing Syria's civil aviation sector on modern economic and regulatory foundations.

“This will be achieved while balancing safety requirements, operational sustainability, investment stimulation, and passenger services. The partnership reflects the state's orientation toward smart cooperation models with trusted regional partners, ensuring the transfer of expertise, the development of national capabilities, and the enhancement of Syria's air connectivity with regional and international destinations, in line with global best practices in the air transport industry."

flynas Chairman Ayed Al-Jeaid stated that the company continues to pursue strategies aimed at growth and international expansion, describing the agreement as a historic milestone in the company's journey and a promising investment model in partnership with Syria.

flynas CEO Bander Al-mohanna said the step represents a qualitative leap in the company's strategy and financial performance, highlighting the transfer of the company's low-cost aviation experience to the Syrian market to support regional and international air connectivity.

flynas currently operates 23 weekly flights from Riyadh, Jeddah, and Dammam to Damascus, including two daily direct flights from Riyadh, one daily flight from Jeddah, and two weekly flights from Dammam.

The airline made history on June 5, 2025, by adding the Syrian capital to its network, becoming the first Saudi carrier to resume scheduled flights to Damascus.