Vision 2030 Transforms Saudi Arabia into a Global Logistics Platform

Jeddah Islamic Port (Saudi Ports Authority)
Jeddah Islamic Port (Saudi Ports Authority)
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Vision 2030 Transforms Saudi Arabia into a Global Logistics Platform

Jeddah Islamic Port (Saudi Ports Authority)
Jeddah Islamic Port (Saudi Ports Authority)

In a global landscape rocked by supply chain disruptions, Saudi Arabia has emerged as an indispensable pillar of stability on the international logistics map. Over the past decade, the Kingdom has demonstrated an exceptional ability to overcome global shocks with greater strength, relying on the Vision 2030 approach based on resilience and proactivity.

This systematic investment in "strengths" was not merely a response to local development requirements but also the construction of a cross-border economic defensive shield, transforming current challenges into a launching pad for global leadership.

In light of the Vision, the Kingdom's geostrategic location has transformed from a static comparative advantage into a dynamic tool that has shaped a new economic reality. This was achieved through the high-quality connectivity between vital waterways from the Arabian Gulf in the east to the Red Sea in the west.

This interconnectedness, supported by advanced air and rail transport platforms, has not only enhanced the Kingdom's position as a link between three continents but also made it a vital artery ensuring the sustainability of international trade. It has proven the national system's ability to transform geopolitical challenges into pioneering opportunities that guarantee global prosperity.

Institutional Harmony

The journey of comprehensive development began with the reorganization of the logistics system, aiming to enhance performance efficiency and achieve the highest degree of integration among its various sectors.

This was embodied in the transformation of the Ministry of Transport into the Ministry of Transport and Logistics Services, leading institutional harmony that brings together the Authority General Transport, ports, and civil aviation under its umbrella.

This reform did not stop at the organizational aspect but extended to enhancing the operational role of national entities. This included empowering the Saudi Railway Company (SAR) and establishing new strategic entities such as Riyadh Air, the Saudi Air Navigation Services Company, the General Authority for Roads, and the National Transport Safety Center.

The system also witnessed a qualitative transformation in the postal services sector through the development of the SPL institution and the expansion of its services to meet modern logistics requirements.

Roadmap Towards Strategic Certainty

National strategies for transport, logistics services, and aviation have contributed to creating a state of "strategic certainty" regarding the sector's future, supported by colossal infrastructure projects that ensure sustainable growth through:

- Air Expansion: Working on establishing leading international airports, such as King Salman International Airport, and the new Abha and Jazan airports, in parallel with launching the "Air Connectivity Program" to enhance global access.

- Smart Logistics Centers: Launching the master plan for logistics centers, which includes establishing 59 centers (24 of which were activated by the end of 2025), and developing ports to become "smart ports" that rely on digitalization as a fundamental pillar.

- Rail Connectivity: Expanding the railway network and connecting the northern lines with the eastern ones (Jubail-Dammam), which has provided low-cost, highly reliable logistics solutions.

How the Kingdom Digitalized the Future of Investment?

The logistics environment has undergone fundamental development, enabling it to assume a prominent position as an attractive destination for global investment, thanks to the adoption of a comprehensive digitalization strategy for services and integrated connectivity through unified digital platforms. This transformation has led to enhanced ease of doing business by simplifying regulatory procedures and automating license issuance, making it more flexible and faster in responding to market demands.

This digital path has also contributed to raising the efficiency of real-time coordination among various regulatory bodies, which in turn has shortened the "investor's journey" and solidified reliability levels in national logistics operations.

In terms of direct economic impact, these digital enablers have played a pivotal role in stimulating growth and diversification rates. They have contributed to revitalizing re-export sectors and providing effective logistical support for non-oil exports. Technical integration has also facilitated the access of local products to international markets according to competitive standards in terms of efficiency and cost, making the logistics system a key driver for supporting cross-border trade and expanding the Saudi economy's global influence.

The Language of Numbers

These strategic efforts culminated in tangible progress for the Kingdom in the most important international forums, reflecting the efficiency of sustainable infrastructure investment and continuous improvement in logistics performance.

This was embodied by the Kingdom reaching the top ten countries globally in the Logistics Performance Index (LPI) issued by the World Bank, in addition to ranking second globally in growth rates among G20 countries, with a growth of 32 percent compared to 2024.
The Kingdom also maintained its strong presence among the top four centers in the Agility Emerging Markets Logistics Index for 2025, which confirms the competitiveness and stability of the Saudi investment environment.

To facilitate global trade movement, the Kingdom achieved qualitative leaps in the efficiency of border operations; it successfully reduced customs clearance times from 9 hours in 2021 to less than two hours by 2025. This achievement coincided with a strategic expansion in logistics facilities, represented by an increase in the number of licensed deposit areas to 21, which enhanced the Kingdom's ability to accommodate global goods flows and support supply chain fluidity with efficiency and capability.

The Story of 24 Million Containers

The geography of the Arabian Gulf and the Red Sea are among the most vital and influential waterways in international trade movement, which gives Saudi ports, extending along the eastern and western coasts, immense strategic importance as fundamental pillars of global navigation.

By serving as logistics convergence points connecting three continents, these ports have succeeded in solidifying their pivotal role in ensuring the sustainability of global supply chains and the flow of goods, transforming the Kingdom's geographical advantages into an active economic force that supports the stability of cross-border trade.

In pursuit of maximizing these gains, the Kingdom launched a series of qualitative development projects to modernize port infrastructure and expand shipping services. These efforts resulted in a major leap in handling capacity, which increased by 50 percent to reach 24.3 million standard containers, in parallel with a tangible increase in the number of added maritime shipping services, totaling 101 services.

This expansion has not only contributed to increasing the Kingdom's interconnectedness with global markets but also enabled it to establish new shipping routes that enhance flexible access to key international ports.

This development vision has extended beyond ports to include the establishment of integrated logistics zones and centers designed to be attractive incubators for major investments. These zones allow investors to maximize the benefits of integrated logistics services for their business growth, in addition to activating re-export activities, which represent added value to the national economy.

Through this integrated system, the Kingdom reaffirms its commitment to its role as a global leader in the maritime sector, providing an advanced logistics environment that ensures efficient operational processes and supports the sustainability of global economic growth.
 

The Vision Train: A Railway Artery Connecting Cities to Ports

The Kingdom invested early in building a robust aviation sector, recognizing the importance of connecting with the world, facilitating the arrival of pilgrims, and finding innovative solutions for cargo shipping.

The sector underwent pivotal regulatory stages, starting with the establishment of the Civil Aviation Department and Saudi Arabian Airlines, leading to structural independence with the establishment of the General Authority of Civil Aviation, which laid the foundations for institutional work that paved the way for major transformations aligning with growing international requirements.

With the emergence of Vision 2030, the Kingdom foresaw exceptional opportunities to develop the aviation sector and effectively contribute to economic growth, leveraging its strategic location connecting the world's three continents.

This vision was translated through the reorganization of the General Authority of Civil Aviation and the establishment of new strategic entities, such as Riyadh Air and the Saudi Air Navigation Services Company, in parallel with the launch of the National Aviation Strategy and the Air Connectivity Program, which aimed to expand international reach through new air routes connecting Saudi cities with global capitals.

In the context of infrastructure modernization, the pace of establishing major international airports accelerated, with development work continuing across all regions of the Kingdom, alongside accelerating private sector involvement in airport management to enhance operational efficiency.

Thanks to these efforts, Saudi airports today have transformed into pivotal connectivity hubs linking global and regional destinations, which has contributed to achieving qualitative leaps in passenger numbers and air cargo activity.

The Kingdom is steadily moving towards its ambitious targets of connecting to 250 global destinations via 29 airports, serving 330 million passengers, and transporting 4.5 million tons of cargo annually by 2030.

Railway Network

The story of railways in the Kingdom began as a strategic necessity to connect the capital, Riyadh, with Dammam Port, leading to the establishment of the Saudi Railways Organization to enhance import and export movement and freight transport.

With the expansion of development projects, especially in the mining sector, the Saudi Arabia Railways (SAR) was established to extend the network, reaching the farthest north of the Kingdom, thereby creating a solid infrastructure for transporting passengers, minerals, and commercial goods with high efficiency.

With the launch of Vision 2030, the railway sector entered an ambitious phase aiming for complete integration with all other logistics sectors.

This phase witnessed an unprecedented expansion in train operations, making Saudi cities more interconnected; the north of the Kingdom was linked to its center and east, providing reliable and sustainable transport solutions. Work on the Haramain High-Speed Railway also accelerated, representing a qualitative leap in serving pilgrims, connecting Makkah, Madinah, Jeddah, and King Abdullah Economic City in Rabigh with the highest standards of speed and safety.

Today, the Kingdom is moving towards a more interconnected future through ambitious projects that support tourism activity and enhance regional connectivity between Saudi cities and the Gulf Cooperation Council (GCC) countries.

This advanced network is no longer just a means of transport; it has become a fundamental pillar for enhancing the quality of life and supporting economic diversification by reducing logistics costs and improving service reliability, thereby solidifying the Kingdom's position as a global logistics hub connecting industrial centers, ports, and urban communities.

It is clear that the radical transformation witnessed by the Saudi logistics sector is not just a race towards numbers and indicators, but a complete reshaping of the "Kingdom's economic identity" to become the vital and reliable link for global trade.



Saudi Arabia Tightens Auto Dealer Obligations to Protect Consumers, Improve Ownership Experience

People are seen at the Riyadh Motor Show. (Riyadh Season)
People are seen at the Riyadh Motor Show. (Riyadh Season)
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Saudi Arabia Tightens Auto Dealer Obligations to Protect Consumers, Improve Ownership Experience

People are seen at the Riyadh Motor Show. (Riyadh Season)
People are seen at the Riyadh Motor Show. (Riyadh Season)

Saudi Arabia’s auto market is moving toward greater discipline and competition as the Ministry of Commerce steps up oversight of dealers, seeking to strengthen consumer protection and improve compliance with after-sales service requirements.

The ministry announced it had suspended an auto dealership, barred it from importing vehicles and fined it SAR 8.12 million ($2.1 million) after recording 175 violations. These included failure to provide spare parts and replacement vehicles to customers during maintenance, as well as other breaches involving consumer rights, the Commercial Agencies Law and its implementing regulations.

The ministry investigated the violations, contacted affected consumers and followed up to ensure they received their rights and due compensation, including replacement vehicles.

It also summoned the manufacturer, oversaw corrective measures and recall campaigns, and began transferring the brand to another dealer after verifying its readiness and ability to provide the necessary services.

Mohammed Al-Farraj, chief asset management officer at Arbah Capital, told Asharq Al-Awsat that Saudi Arabia’s large auto market and sustained demand make it one of the region’s most attractive, supported by population and economic growth, expansion of the non-oil economy and mega-projects, and growth in tourism and logistics.

The availability and variety of financing options play a key role in supporting demand, particularly because cars are a necessity for a large segment of the population rather than a luxury, Al-Farraj noted.

Market performance is influenced by vehicle prices, financing costs, income levels and supply, as well as competition among brands and the quality of after-sales services.

Al-Farraj described the ministry’s tougher oversight as a positive step toward protecting consumers and improving market discipline, stressing that a dealer’s obligations do not end with a sale but extend to warranties, maintenance, spare parts and replacement vehicles when needed.

Stronger after-sales compliance should bolster market confidence and gradually shift competition toward quality and reliability rather than price alone.

Al-Farraj expects intensifying competition to push dealers to focus more on the value offered throughout vehicle ownership, including total cost of ownership and customer service.


Mega-Projects, Investment Flows Draw Bank of Jordan to Saudi Arabia

A group photo of Bank of Jordan officials following the inauguration ceremony for the bank’s first branch in Riyadh. (Asharq Al-Awsat)
A group photo of Bank of Jordan officials following the inauguration ceremony for the bank’s first branch in Riyadh. (Asharq Al-Awsat)
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Mega-Projects, Investment Flows Draw Bank of Jordan to Saudi Arabia

A group photo of Bank of Jordan officials following the inauguration ceremony for the bank’s first branch in Riyadh. (Asharq Al-Awsat)
A group photo of Bank of Jordan officials following the inauguration ceremony for the bank’s first branch in Riyadh. (Asharq Al-Awsat)

Saudi Arabia’s appeal extends beyond rising foreign investment and expanding mega-projects to the banking sector, where institutions see the economic transformation driven by Vision 2030 as an opportunity to establish a long-term presence in one of the region’s fastest-growing markets.

Bank of Jordan Group’s entry into the Kingdom reflects growing interest among regional financial institutions in tapping the country’s expanding investment cycle.

The group opened its first branch in Riyadh on Monday, launching its financial and banking operations in Saudi Arabia. The move underscores the Kingdom’s ability to attract not only capital, but also financial institutions seeking to finance the next phase of investment.

Mega-projects, private sector expansion and growing foreign and domestic investment are creating significant opportunities for banks to provide financing solutions and services to companies and investors. At the same time, Saudi Arabia is seeking to deepen the financial sector’s role as a driver of growth and economic diversification.

Saleh Hammad, general manager of Bank of Jordan Group, told Asharq Al-Awsat that the bank’s strategy is based on a clear view of the economic transformations reshaping Saudi Arabia and the wider region.

The group has pursued carefully considered regional expansion, focusing on markets with sustainable economic fundamentals and strategic importance, with Saudi Arabia at the forefront.

Hammad said the Kingdom is undergoing an unprecedented economic transformation under Vision 2030, fueled by investment growth, private-sector expansion and the development of its financial and banking environment.

Establishing a presence in one of the region’s leading financial and economic hubs strengthens Bank of Jordan’s position as a regional institution capable of supporting trade, development and investment opportunities, he noted.

Hammad also highlighted Saudi Arabia’s strong banking system and evolving regulatory environment, supported by the Saudi Central Bank, as key advantages that enhance the group’s position while creating added value for clients and investors.


Gold Eases from Over Two-Month Peak, Inflation Reports in Focus

Ingots of 99.99 percent pure gold are placed in a workroom at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, January 31, 2023. (Reuters)
Ingots of 99.99 percent pure gold are placed in a workroom at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, January 31, 2023. (Reuters)
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Gold Eases from Over Two-Month Peak, Inflation Reports in Focus

Ingots of 99.99 percent pure gold are placed in a workroom at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, January 31, 2023. (Reuters)
Ingots of 99.99 percent pure gold are placed in a workroom at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, January 31, 2023. (Reuters)

Gold ticked lower on Tuesday after hitting its highest level in more than two months, while investors focused on upcoming inflation data for clues on the U.S. interest-rate outlook.

Spot gold was down 0.3% to $4,374.82 per ounce by 0548 GMT, after hitting its highest level since June 5 earlier in the session at $4,434.84.

US gold futures rose 0.4% ‌to $4,435.00.

Gold's move higher ‌in early session trading beyond $4,400 appears to ‌be ⁠driven primarily by ⁠renewed flows into the metal and a notable shift in the metal market sentiment, said Ahmad Assiri, Research Strategist at Pepperstone.

"If this change in sentiment continues to attract further flows, it could remain an important factor in determining whether gold can consolidate around $4,400 and potentially extend the recovery towards higher levels."

The US ⁠consumer price report due on Wednesday and ‌producer price data on Thursday are ‌likely to shape monetary policy expectations after weak July US jobs ‌data last week led markets to scale back bets that ‌the Federal Reserve would raise rates next month.

At its July meeting, the Federal Reserve kept rates steady, with three officials dissenting in favor of a hike.

Lower interest rates tend to support gold as ‌bullion pays no interest.

"If the data continue to point towards a cooling economy without a meaningful ⁠resurgence in ⁠inflation, markets could further reduce expectations for tighter policy. That would likely leave the dollar vulnerable and provide another supportive backdrop for gold," Fawad Razaqzada, a market analyst at Forex.com, said in a note.

On the geopolitical front, US President Donald Trump responded to Iran's conditions for a peace deal with his own demands that Iran pay compensation for people killed in wars, attacks and protests, in a rhetorical escalation likely to complicate efforts to reopen the Strait of Hormuz.

Among other metals, spot silver fell 1.7% to $64.64, platinum lost 0.4% to $1,745.68 and palladium declined 0.8% to $1,372.44.