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Saudi Privatization Strategy Lifts Logistics Development

Jeddah Islamic Port (SPA)
Jeddah Islamic Port (SPA)
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Saudi Privatization Strategy Lifts Logistics Development

Jeddah Islamic Port (SPA)
Jeddah Islamic Port (SPA)

The launch of the National Privatization Strategy at the end of last month marked a decisive shift toward a sustainable, private sector-led model across Saudi Arabia’s economy, positioning it as a catalyst for advancing the Kingdom’s transport and logistics system and reinforcing the private sector’s role as a central development partner.

More than an administrative step, the strategy acts as a legislative engine designed to boost international competitiveness and translate the National Transport and Logistics Strategy from long-term ambition into measurable economic impact.

At its core is a clear objective: entrench Saudi Arabia’s position as a global logistics hub linking three continents under Vision 2030.

The momentum began in 2018 with the launch of the Privatization Program, one of Vision 2030’s flagship initiatives aimed at accelerating implementation and strengthening coordination across government entities.

By the end of 2025, the program had completed its plan, becoming the second Vision 2030 program to achieve its targets. It identified assets and resources for privatization across key sectors, including water, transport, health and education, improving service quality while creating jobs and attracting high-value investment.

The program laid firm institutional foundations, notably through the establishment of the National Center for Privatization and the approval of the Privatization Law. Together, they streamlined procedures, cataloged assets and services, and prepared sectors for public-private partnerships.

With the program formally concluded, the National Privatization Strategy and the Center now spearhead the next phase, expanding delivery and unlocking further opportunities.

Partnership at the core

Saudi Arabia’s model rests on Public-Private Partnerships (PPPs), aimed at improving economic performance while increasing private-sector participation in managing and owning public facilities and services.

The target is clear: lift the logistics sector’s contribution to GDP to 10% by 2030 by opening facilities to domestic and foreign investors, improving service quality and sharpening the Kingdom’s competitive edge in global trade.

Investment has already followed. Minister of Transport and Logistics Services Saleh Al-Jasser said private investments in the sector have surpassed 280 billion riyals ($74.7 billion), raising transport and logistics’ share of GDP to 6.2%.

In a further step, Airports Holding Company, in cooperation with the National Center for Privatization, announced a PPP project to develop Prince Naif bin Abdulaziz International Airport in Qassim.

Revitalizing logistics

Nashmi Al-Harbi, a logistics and supply chain specialist, said privatization policies have become the primary driver of the transformation of Saudi logistics into a magnet for global investment.

More than 18 billion riyals ($4.8 billion) have been injected into ports and logistics zones, while customs clearance times have been cut to under 24 hours through the FASAH platform. Port capacity has climbed to 40 million containers.

The results have been visible internationally. Saudi Arabia advanced 17 places in the World Bank’s Logistics Performance Index, strengthening confidence among major global shipping lines.

Al-Jasser told the Public Investment Fund and Private Sector Forum that 80% of targeted investments in transport and logistics will come from the private sector. Recently signed maritime and port contracts with private operators exceed 18 billion riyals, with most port investments now executed through private participation.

Al-Harbi said privatization is not simply a supportive policy but a core guarantee of Saudi Arabia’s transformation into a global logistics hub. It attracts financing and international operational expertise while accelerating adoption of technologies such as artificial intelligence and the Internet of Things, driving higher service standards and lower costs.

He said privatizing ports and airports has addressed longstanding bottlenecks, eliminating customs clearance delays that once stretched to nine days. Port operational efficiency has increased by 71%, alongside stronger integration between rail and road networks to ensure smoother cargo flows.

Boosting competitiveness

Logistics expert engineer Hassan Al-Halil said privatization has reshaped the sector, making it more attractive to leading global shipping companies through structural reforms.

Transferring port and airport management to private operators reduced shipping times and operating costs, enhancing market competitiveness. Significant investments modernized ports, warehouses and smart transport systems, offering advanced, user-friendly facilities.

Private sector participation also reduced operational bottlenecks, making shipping, unloading and storage faster and more organized. The introduction of private operators in customs clearance cut bureaucracy, accelerated procedures and increased transparency — key factors in attracting international players. Clear legal frameworks have reinforced investor confidence in major logistics projects.

Linking three continents

Al-Halil described privatization as a foundational pillar for connecting Asia, Europe and Africa, though part of a broader ecosystem. Sustained investment in technological infrastructure, airports and smart warehouses, combined with integrated land, sea and air networks, remains essential.

He stressed the need to align flexible regulation with specialized human capital. In this framework, privatization provides the necessary base, working alongside technology and policy to support the Kingdom’s global logistics ambitions.

Innovation and growth

Competition driven by privatization has spurred innovation, including digital tracking and integrated transport and storage services, strengthening international appeal. The mixed public-private model in ports and airports has created a more efficient, flexible and investment-ready environment that supports economic growth.

The transformation extends beyond seaports. Air cargo volumes have risen 34% annually to 1.2 million tons. Saudi Arabia ranked fourth among emerging markets in the 2025 Agility Logistics Index, reinforcing its ambition to enter the global top 10.

Domestically, 30 new logistics centers have been added, supporting an ecosystem that now employs more than 651,000 people.

Structural enablers

These gains reflect institutional efforts led by the National Industrial Development and Logistics Program (NIDLP), launched in 2019 to strengthen infrastructure and expand capacity. The program serves as a structural enabler linking domestic and regional networks, facilitating cross-border goods movement and ensuring competitively priced services for investors and consumers.

By engaging the private sector, NIDLP aims to reduce shipping costs through network integration, streamline customs procedures and ease cross-border trade while maintaining competitive domestic distribution services.

To sustain progress and address private-sector challenges, the Logistics Partnership Council was established as a bridge between investors and policymakers, turning on-the-ground feedback into policies that enhance competitiveness.

Saudi Arabia is moving beyond its traditional role as a facility operator to redefine its place in global logistics. Privatization and strategic partnerships are not only improving efficiency but positioning the Kingdom as a critical link in future supply chains, advancing Vision 2030’s goal of building a diversified and sustainable economy.

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Oil Edges Lower after Oman Says Mina al Fahal Operations Proceeding Normally

Oil pumpjacks operating in a farmer’s field near Calgary, Alberta, Canada, November 26, 2025. (Reuters)
Oil pumpjacks operating in a farmer’s field near Calgary, Alberta, Canada, November 26, 2025. (Reuters)

Oil prices edged lower after Oman said operations at Mina al Fahal port were proceeding normally, following a Reuters report that oil loadings had been suspended after an explosion.

Brent crude futures fell by 50 cents, or 0.53%, to $94.53 a barrel by 0915 GMT after settling down 2.84% in the previous session.

US West Texas Intermediate crude was at $92.61 a barrel, down 43 cents, or 0.46%, following a 3.1% loss on Thursday.

Both contracts still looked set to post their first weekly gains in three weeks, with Brent up 2.7% and WTI around 6%.

The contracts rose after fighting flared in the Middle East as US-Iran war peace talks dragged on while traffic in the Strait of Hormuz, where a fifth of the world's oil passes, remained limited, Reuters reported.

Petroleum Development Oman said on Friday that operations at Mina Al Fahal port were proceeding normally, after three sources told Reuters earlier that oil loading had been suspended following an explosion near its mooring berths.

Oman exports 800,000 to 900,000 barrels per day of crude from the terminal.

Hezbollah leader Naim Qassem rejected on Thursday a US-brokered agreement between Israel and the Lebanese government to halt the fighting. Iran has made a ceasefire in Lebanon a condition for any peace deal with Washington.

US President Donald Trump said on Thursday he believed progress was being made between Israel and Lebanon and that Lebanon deserved to have peace.

"Any optimism remains heavily clouded by a tangled web of headlines and counter-headlines," IG market analyst Tony Sycamore said in a note. OPEC is sticking to its oil demand growth forecast of 1.2 million barrels per day for this year, Secretary General Haitham Al Ghais said on Thursday, despite the Middle East conflict and closure of the Strait of Hormuz.

Iranian oil exports have fallen to their lowest level in six years mainly due to the US naval blockade, according to shipping data, although weak demand in China has depressed prices for the oil.

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A shopper buys vegetables with her son at a street market in Urcos, Peru, Tuesday, June 2, 2026. (AP Photo/Rodrigo Abd)
A shopper buys vegetables with her son at a street market in Urcos, Peru, Tuesday, June 2, 2026. (AP Photo/Rodrigo Abd)
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FAO: World Food Prices Slip in May, Still Near Three-year High

A shopper buys vegetables with her son at a street market in Urcos, Peru, Tuesday, June 2, 2026. (AP Photo/Rodrigo Abd)
A shopper buys vegetables with her son at a street market in Urcos, Peru, Tuesday, June 2, 2026. (AP Photo/Rodrigo Abd)

World food prices slipped in May from a revised April level, with vegetable oil prices falling for the first time this year while cereals and sugar jumped, the United Nations Food and Agriculture Organization said on Friday.

The FAO Food Price Index, which measures changes in a basket of globally traded food commodities, averaged 130.8 points in May, ⁠0.2% down from ⁠its revised April level of 131.0, but up 2.9% from a year earlier, Reuters reported.

Despite the small downward correction for the April data, the index remained near its highest level since January 2023 and 18.4% below its March 2022 peak. Cereal prices rose more than 2.6% on the month, with wheat up for a fourth straight month on smaller export harvest prospects, including in ⁠the United States, and higher fuel and fertilizer costs linked to the Iran conflict.

Maize prices were also supported by stronger import demand and tighter supplies in Brazil and the US, the agency said.

By contrast, vegetable oil prices fell 4.6% from last month, their first monthly decline this year, as lower palm and soy oil prices outweighed gains in rapeseed and sunflower oil. After rising for five consecutive months, international palm oil prices declined, reflecting expectations of weaker global import demand and uncertainty in crude oil markets.

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Sugar prices jumped 7.5% from last month to 95.1 points, but remained 13.1% below their level a year ago. The increase was mainly driven by concerns over an anticipated tightening of global sugar supplies in the coming months.

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US Employers Likely Added 105,000 Jobs in May with Labor Market Stable Despite Costly Iran War

Workers continue putting the finishing touches on the Lincoln Memorial Reflecting Pool on June 04, 2026 in Washington, DC. (Getty Images/AFP)
Workers continue putting the finishing touches on the Lincoln Memorial Reflecting Pool on June 04, 2026 in Washington, DC. (Getty Images/AFP)
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US Employers Likely Added 105,000 Jobs in May with Labor Market Stable Despite Costly Iran War

Workers continue putting the finishing touches on the Lincoln Memorial Reflecting Pool on June 04, 2026 in Washington, DC. (Getty Images/AFP)
Workers continue putting the finishing touches on the Lincoln Memorial Reflecting Pool on June 04, 2026 in Washington, DC. (Getty Images/AFP)

The American job market has climbed out of a rut. But it's still trudging along tepidly, frustrating young people and others out of work.

The Labor Department is expected to report Friday that companies, non-profits and government agencies added 105,000 jobs last month, according to a survey of forecasters by the data firm FactSet. That would be solid by the labor market's recent, diminished standards -- but down from 115,000 in April.

Hiring has bounced back this year from a miserable 2025, showing unexpected resilience in the face of economic uncertainty and painfully high energy prices caused by the Iran war.

Unemployment is expected to have remained at a low 4.3% in May, FactSet says. But despite the improvement from last year, job creation is way down from the boom that followed pandemic lockdowns.

Workers, jobseekers and employers are stuck in an awkward “no-hire, no-fire" labor market. “Those who have jobs are clinging to them, while those without are left wanting,” Diane Swonk, chief economist at the tax and consulting firm KPMG, wrote in a commentary ahead of the jobs report. “The result is a sense of being frozen or left in a sort of labor market purgatory.”

Many young people are finding it tough to break into a stagnant job market and workers who have been laid off struggle to get back to work. More than a quarter of the unemployed in April had been jobless for more than six months, up from less than 20% two years ago.

Seeing their prospects diminished, Americans are reluctant to leave their jobs and seek something better elsewhere. In April, the number of people who quit dropped to the lowest level since the frightening days of August 2020, when the COVID-19 was running rampant.

Last year, employers added 9,700 jobs a month, fewest outside a recession since 2002.

This year, hiring has rebounded, averaging 76,000 new jobs a month from January through April. Big tax refunds — the product of President Donald Trump’s 2025 tax cuts — have given the economy a lift, offsetting the impact of higher energy prices since the United States and Israel attacked Iran in late February. But the refunds have mostly been pocketed, and gasoline prices remain above $4 per gallon.

Healthcare companies have been propping up the job market.

Over the past year, they've added more than 456,000 jobs; all other US employers have collectively cut 205,000.

Martha Gimbel and Ryan Nunn of Yale University's Budget Lab note that strong healthcare hiring isn't surprising as Americans age and need more prescriptions and trips to the doctor. In fact, the industry's job growth is in line with Labor Department predictions from a decade ago.

“The question is not why healthcare has kept hiring—it is why other industries have not,” they wrote in a report published Tuesday, suggesting that one explanation might be an immigration crackdown that has reduced the supply of foreign-born workers.

At least the United States doesn’t need as many new jobs as it used to. The drop in immigrants and rising Baby Boomer retirements mean that fewer people are competing for work. As a result, the so-called break-even point — the number of new jobs required to keep the unemployment rate stable — has likely dropped to near zero, from the 155,000 new jobs per month that was typical two or three years ago, according to a Federal Reserve report.

Some analysts fear that artificial intelligence will wipe out entry-level jobs. But economists Gregory Daco and Lydia Boussour of the tax and consulting firm EY-Parthenon wrote in a commentary Tuesday that AI “adoption is proving more gradual and costly than many anticipated. Firms are increasingly using AI to enhance productivity and control labor costs.” But AI, they wrote, has reduced hiring rather than “triggering broad-based layoffs.”

And a new study by the Federal Reserve Bank of New York identified a different culprit for young people's struggle to land jobs after college: the rise of remote work. Businesses, it seems, are reluctant to hire new grads for work-at-home jobs because it is harder to train and mentor them when they aren't coming into the office.