Maritime Alliances Propel Saudi Arabia Toward Building Global Logistics Influence

Containers assembled at a Saudi port (SPA)
Containers assembled at a Saudi port (SPA)
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Maritime Alliances Propel Saudi Arabia Toward Building Global Logistics Influence

Containers assembled at a Saudi port (SPA)
Containers assembled at a Saudi port (SPA)

In a short period, Saudi Arabia has moved into a phase of building global logistics influence through maritime alliances with major international companies. The latest step is the launch of a new shipping route linking the Kingdom with Europe, alongside 18 other maritime services currently in operation, supporting national exports, improving access to markets, and reinforcing the country’s position as a key logistics hub.

The Saudi Ports Authority (Mawani) announced on Saturday the addition of a new shipping service by MSC, the world’s largest container shipping company, named “Europe–Red Sea–Middle East,” to Jeddah Islamic Port and King Abdullah Port in Rabigh, as part of ongoing efforts to strengthen maritime connectivity between the Kingdom and global ports and to support import and export flows in cooperation with leading global shipping lines.

MSC said in a statement on its X platform that the new fast shipping service is designed to meet growing demand and provide reliable and efficient connections in a complex operating environment.

The new service links Jeddah Islamic Port with several major global ports, including Gdansk, Klaipeda, Bremerhaven, Antwerp, Valencia, Barcelona, Gioia Tauro, and Abu Qir, extending to King Abdullah Port, Jeddah, and Aqaba, with a capacity of up to 16,000 TEUs.

The authority also revealed on Sunday the launch of 18 maritime shipping services at present, supporting the growth of national exports, improving their efficient access to international markets, and strengthening the Kingdom’s position as a central logistics hub.

Strategic Shift

Specialists told Asharq Al-Awsat that the Kingdom is undergoing a strategic transformation that strengthens its position as a logistics hub linking three continents and supports the goals of Vision 2030 to position Saudi Arabia as a global logistics platform. They said this reflects cumulative investments in port infrastructure, digital transformation, technical integration, and partnerships with leading global shipping lines.

They added that linking the Kingdom with Europe reduces time and cost and enhances the global reach of Saudi products.

Sovereign Tool

Zaid Al-Jarba, an expert in digital transformation and logistics services, told Asharq Al-Awsat that amid rapid shifts in global supply chains, efficient logistics connectivity is no longer merely an operational advantage but a sovereign tool reshaping economic power balances between countries. He said the launch of the new maritime route to Europe, alongside the addition of 18 services in a short period, signals the Kingdom’s transition to an advanced stage in building its logistics influence.

He added that what distinguishes this step is not only the expansion in the number of routes, but the quality of operational integration across Saudi ports, describing an interconnected system that begins at Jeddah Islamic Port and King Abdullah Port and extends through King Abdulaziz Port in Dammam via feeder vessels, reflecting a unified logistics network rather than separate gateways.

He said the move supports Vision 2030 and the National Transport and Logistics Strategy, which aims to establish the Kingdom as a global logistics platform by improving logistics hub performance, upgrading infrastructure, and adopting modern transport systems.

Operational Capacity

Al-Jarba said recent figures, including the launch of 18 new maritime services within a short timeframe with a total capacity of 123,552 TEUs, reflect high operational capacity and flexibility in responding to global changes.

He noted that the presence of global companies such as MSC, Maersk, and CMA CGM within the operating ecosystem reflects international confidence in Saudi Arabia’s logistics environment, indicating that the sector has moved beyond efficiency improvements toward maximizing economic and competitive impact.

He added that improved maritime connectivity not only supports imports but also serves as a key enabler for national exports by reducing delivery times to European markets, improving reliability, and lowering logistics costs, thereby enhancing the competitiveness of Saudi goods, particularly in industrial, food, and petrochemical sectors.

He said developments in Saudi ports go beyond expanding shipping routes to reflect a broader strategic shift toward building an integrated, globally competitive logistics system, adding that the Kingdom is steadily advancing toward cementing its position as a global logistics hub and a key link in international supply chains.

Logistics Integration

Khaled AlGhamdi, a supply chain and logistics expert, told Asharq Al-Awsat that adding these services expands alternative options that integrate with other logistics modes, including land, rail, and air, as part of broader efforts to enhance integration across the transport and logistics sector through multiple initiatives and international partnerships aimed at reducing time, lowering costs, and boosting productivity.

He said the new Europe link in particular will significantly accelerate cargo movement in both directions, from King Abdulaziz Port in Dammam to Jeddah Islamic Port and King Abdullah Port, reflecting efforts to enhance sector integration through expanded services, improved efficiency, and greater reliability, further cementing the Kingdom’s position as a global hub linking three continents.

He added that since the launch of Vision 2030, Saudi Arabia has seen broad progress in transport and logistics, including the rollout of a national strategy and projects exceeding 280 billion riyals, contributing to the Kingdom’s rise to 17th place in the Logistics Performance Index, underscoring the scale of progress achieved.



Saudi Arabia Emerges as Global AI Hub as Tech Firms Base Regional Operations in Riyadh

The SAS pavilion at the Global AI Show in Riyadh. (Asharq Al-Awsat)
The SAS pavilion at the Global AI Show in Riyadh. (Asharq Al-Awsat)
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Saudi Arabia Emerges as Global AI Hub as Tech Firms Base Regional Operations in Riyadh

The SAS pavilion at the Global AI Show in Riyadh. (Asharq Al-Awsat)
The SAS pavilion at the Global AI Show in Riyadh. (Asharq Al-Awsat)

Saudi Arabia is no longer preparing for the age of artificial intelligence; it is helping shape it. After designating 2026 as the Year of AI, the Kingdom has evolved from a promising market into a major technology hub, attracting global companies eager to establish regional operations.

Reflecting that momentum, US data and AI company SAS selected Riyadh as its regional headquarters for the Middle East and North Africa a year ago. Founded in 1976, SAS is marking its 50th anniversary this year and is among the world’s leading providers of predictive analytics, data management, and machine learning solutions, serving industries including energy, finance, and healthcare.

Speaking to Asharq Al-Awsat on the sidelines of the Global AI Show, held in Riyadh on June 29-30, Khaled Moussa, Senior Customer Account Manager at SAS, said Saudi Arabia’s Vision 2030 has accelerated the adoption of advanced and sophisticated technologies.

He noted that the Kingdom’s modern digital infrastructure has enabled increasingly complex technological operations, fueling demand for SAS solutions and those of other technology firms across multiple sectors.

“The remarkable growth taking place in Saudi Arabia is attracting significant attention in the United States and beyond,” Moussa said. “That has encouraged international companies to make serious commitments to the market because of its rapid adoption of intelligent technologies.”

Although SAS has operated in Saudi Arabia since 1984, he added, “the market has reached a new level of maturity, both in terms of regulation and technology adoption.”

Moussa said SAS maintains a strong presence across several strategic sectors, particularly energy, through its collaboration with Saudi Aramco, the world’s largest energy company.

The company also works with the Saudi Electricity Company, providing advanced forecasting tools to predict electricity demand and support long-term planning, helping improve operational efficiency and future preparedness. SAS also supplies analytical solutions for the water sector to strengthen sustainability efforts.

Moussa highlighted two areas where predictive analytics deliver particular value. The first is market forecasting, where SAS helps organizations anticipate trends and make data-driven decisions while reducing unnecessary costs. The second is predictive maintenance, which allows industrial operators to identify potential equipment failures before they occur, minimizing downtime and avoiding costly repairs.

He also underlined SAS’s long-term commitment to developing Saudi talent. The company partners directly with universities to offer six-month paid internships, equipping students with practical experience before they enter the workforce.

In addition, SAS extends its training initiatives to schools and universities, teaching students how to apply AI technologies and preparing them for future careers.

The Global AI Show brought together more than 100 experts and global leaders from 80 countries, including government officials, innovators, and digital transformation specialists.

The event attracted more than 10,000 participants, 100 exhibitors and sponsors, and coverage from 200 international media organizations, reinforcing Riyadh’s growing role as a global platform for AI policymaking and international technology cooperation.


China Factory Activity Returns to Expansion Riding AI Global Boom

 A man stands next to a poster of a humanoid robot during the China International Supply Chain Expo (CISCE) in Beijing on June 25, 2026. (AFP)
A man stands next to a poster of a humanoid robot during the China International Supply Chain Expo (CISCE) in Beijing on June 25, 2026. (AFP)
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China Factory Activity Returns to Expansion Riding AI Global Boom

 A man stands next to a poster of a humanoid robot during the China International Supply Chain Expo (CISCE) in Beijing on June 25, 2026. (AFP)
A man stands next to a poster of a humanoid robot during the China International Supply Chain Expo (CISCE) in Beijing on June 25, 2026. (AFP)

China's factory activity returned to expansion in June, driven by demand for chips, computers and other AI-related products, as robust export orders and front-loading to the United States to get ahead of tariffs offset weakness elsewhere in the economy.

The data suggest global AI investment is providing an important cushion for manufacturers in China's $20 trillion economy, even as disruption from the Middle East conflict and a prolonged property slump continue to weigh on broader growth.

The official manufacturing purchasing managers' index (PMI) rose to 50.3 in June from 50.0 in May, according to a survey by the National Bureau of Statistics (NBS). It beat a median forecast of 50.0 in a Reuters poll.

"Exports to meet international demand for chips and other AI-related products, as well as front-loading to get ahead of new US Section 301 ‌tariffs due late ‌July and improved domestic demand due to lower upstream costs underpinned the improvement," said ‌Dan ⁠Wang, China director ⁠of consultancy Eurasia Group.

The number of domestic infrastructure projects ticked up over the last month too, she added. US retailers have brought forward orders from China by four to six weeks to secure their inventories for Black Friday and Christmas holiday sales before the expected tariff hikes later this year, shipping executives said.

The sub-index for new export orders returned to expansion in June, rising to 50.1 from 48.6, while the production and overall new orders gauges edged up to 51.4 and 51.2 from 51.2 and 49.9, respectively.

Factory gate prices slipped to 48.2 from 51.9 in May, however, following five months of expansion, with ⁠employment also continuing to trend downward.

"The export strength is set to continue, driven by ‌global AI investment demand," said Xu Tianchen, senior economist at the Economist Intelligence ‌Unit. "Second, more policy easing will come."

"For example, fiscal spending has lagged behind budget arrangements, and it should accelerate in the coming months. There ‌is also room for monetary easing," he added.

The non-manufacturing PMI, which includes services and construction, improved to 50.2 ‌versus 50.1 in May, while the composite PMI came in at 50.6 compared with 50.5 a month earlier.

AI BOOM OR BUST

With the property crisis showing little sign of stabilizing and household spending remaining subdued, policymakers face the challenge of managing a two-speed economy.

There is enormous international demand for semiconductors powering data centers and advanced electronics, playing to China's manufacturing strengths, but there does not seem ‌to be much demand for anything else.

Exports of furniture, for example, grew just 1.9% in value terms year-on-year, according to the latest trade data for May, while shipments of ⁠automated data processing equipment ⁠jumped 60% over the same period.

Furthermore, retail sales, a proxy for domestic demand, fell for the first time in over three years, the most recent data for May showed, along with a faster slump in new home prices.

Julian Evans-Pritchard, head of China Economics at Capital Economics, said the improvement "remains heavily dependent on exports and AI-related tech," and warned that "despite the improvement in activity, the manufacturing sector appears to be slipping back into deflation."

China has set a 2026 growth target of 4.5% to 5.0%, slightly below last year's 5% expansion.

With signs of precautionary buying in the wake of Middle East-related price pressures fading, input costs rising and overseas customers running down inventories while awaiting a ceasefire, Chinese manufacturers may increasingly need demand from the world's largest consumer market to regain momentum.

A closely watched meeting in May between US President Donald Trump and Chinese leader Xi Jinping, however, produced no meaningful breakthroughs, whether on tariffs or Beijing using its influence over Tehran to end the Iran war.

"The sluggish data from the past few months will likely result in a notable slowdown in second-quarter GDP," said Lynn Song, chief economist for China at ING.

"We're looking for a slowdown to 4.6% year-on-year, with risks slightly balanced to the downside."


EU's Side of US Trade Deal to Come Into Force on July 1

FILED - 03 June 2024, Berlin: FILE PHOTO - The European Union flag flies in the wind. Photo: Sebastian Gollnow/dpa
FILED - 03 June 2024, Berlin: FILE PHOTO - The European Union flag flies in the wind. Photo: Sebastian Gollnow/dpa
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EU's Side of US Trade Deal to Come Into Force on July 1

FILED - 03 June 2024, Berlin: FILE PHOTO - The European Union flag flies in the wind. Photo: Sebastian Gollnow/dpa
FILED - 03 June 2024, Berlin: FILE PHOTO - The European Union flag flies in the wind. Photo: Sebastian Gollnow/dpa

The European Union's side of a trade deal struck with the United States last year, which will remove import duties on many US goods, will come into force on July 1, said a formal European Union regulatory filing.

The EU said this ⁠regulation would apply ⁠from July 1 until December 31, 2029, Reuters reported.

"Where appropriate, the Commission shall submit together with the comprehensive assessment a legislative proposal to extend ⁠the period of application of this Regulation," added the regulatory filing.

Under the agreement, the EU agreed to remove import duties on US industrial goods and provide preferential access to US farm produce.

It will also extend duty-free imports of ⁠US lobster, ⁠a mini-deal struck with Trump during his first term as president.

The EU legislation expires at the end of 2029 and includes multiple safeguards that would allow the EU to suspend concessions if the United States breaches the trade deal's terms.