Ports, Logistics Drive Saudi Transport Sector’s First-Half Growth Surge

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

Ports, Logistics Drive Saudi Transport Sector’s First-Half Growth Surge

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

Saudi Arabia’s transport sector gathered financial momentum in the first half of 2026 as operating activity expanded and several listed companies, particularly those in logistics, ports and transportation, delivered improved performances.

The nine companies’ combined net profit surged 155.5%, or about 395.6 million riyals, to approximately 650 million riyals ($173.3 million), from 254.4 million riyals ($67.8 million) in the same period of 2025.

The improvement was supported by a strong second-quarter performance. Combined revenue rose 13.1% year on year to about 6.21 billion riyals, while the sector swung to a net profit of 156.1 million riyals from a loss of 341.4 million riyals in the second quarter of 2025.

The marked turnaround reflected improved performances by logistics, port and transportation companies, despite continued pressure on some rental and aviation-related services.

The sector comprises nine companies: SAL Saudi Logistics Services Co., Saudi Ground Services Co., United International Transportation Co. (Budget Saudi), Theeb Rent a Car Co., Lumi Rental Co., Saudi Public Transport Co. (SAPTCO), SISCO Holding, flynas and Cherry Trading Co.

SAL Saudi Logistics Services leads profits

SAL Saudi Logistics Services accounted for about 53.5% of the sector’s total first-half profit after its net profit rose 10.4% to approximately 348 million riyals, from 315.3 million riyals in the same period of 2025.

The company attributed the increase to improved operating performance and revenue growth in its cargo handling and logistics segments.

United International Transportation Co. (Budget Saudi) ranked second by profit, reporting a first-half net profit of 127.8 million riyals, down 24% from 168.4 million riyals in the same period a year earlier.

The company attributed the decline to lower utilization rates in its short-term rental business amid geopolitical conditions, as well as higher insurance costs and increased provisions for receivables under a more conservative policy.

SISCO Holding ranked third after its net profit jumped 91% to 85.4 million riyals, from 44.7 million riyals in the first half of 2025, driven by revenue growth and strong performances in its ports and logistics segments.

Sector returns to profitability

At the second-quarter level, the sector’s companies recorded a sharp turnaround in financial performance, posting a combined net profit of about 156 million riyals, compared with a loss of 341 million riyals in the corresponding quarter of 2025.

Combined revenue, meanwhile, continued to grow, reaching 6.213 billion riyals from 5.5 billion riyals a year earlier, an increase of about 13%.

The turnaround is particularly significant because it indicates that the expansion in activity is no longer reflected solely in revenue but is increasingly translating into improved profitability and operating efficiency.

Logistics demand supports growth

Commenting on the results, financial and economic expert Dr. Suleiman Al-Humaid Al-Khalidi, a member of the Saudi Economic Association, told Asharq Al-Awsat that Saudi Arabia’s transport and logistics sector delivered a strong improvement in financial performance during the first half of 2026.

He said the improvement was driven by several factors, chiefly rising demand for logistics services, growth in freight and transportation activity and an expansion in economic activity linked to major projects and Saudi Vision 2030. These factors, he added, have placed Saudi Arabia among the advanced countries in this vital sector.

Al-Khalidi said the factors were strengthening the kingdom’s position among leading countries in transportation and logistics, one of the Saudi economy’s key sectors.

Higher operating efficiency and improved profit margins at several companies also supported the results, alongside expansion in value-added services and digital transformation, which helped increase productivity and improve fleet and supply-chain management, he said.

Revenue growth combined with the sector’s return to profitability was a positive indication of strong and sustainable demand, rather than a temporary improvement in results, Al-Khalidi said.

Saudi Arabia’s economy is expanding across industry, trade, tourism, retail, projects and infrastructure, all of which generate increasing demand for transportation, storage and supply services, he added.

Al-Khalidi said the most important aspect of the first-half results was not merely the increase in revenue, but the companies’ ability to convert that growth into profits and stronger margins, reflecting improved quality of growth and operating efficiency.

He said the sector had significant opportunities for further growth, particularly as investment continues in infrastructure and the development of ports, airports and logistics zones, reinforcing the kingdom’s position as a regional logistics hub linking three continents.



China, US Discuss Tariffs, Farm Trade at First Trade Council Meeting

US and Chinese flags are seen in this illustration taken March 20, 2025. (Reuters)
US and Chinese flags are seen in this illustration taken March 20, 2025. (Reuters)
TT

China, US Discuss Tariffs, Farm Trade at First Trade Council Meeting

US and Chinese flags are seen in this illustration taken March 20, 2025. (Reuters)
US and Chinese flags are seen in this illustration taken March 20, 2025. (Reuters)

China and the United States held their first trade council meeting under a bilateral economic and trade consultation mechanism via ‌video link ‌on Friday, China's ‌commerce ⁠ministry said on ⁠Saturday.

The two sides held "candid, in-depth and constructive discussions" on implementing outcomes ⁠from previous trade consultations, ‌including ‌tariffs, a reciprocal ‌tariff-reduction arrangement involving $30 ‌billion on each side, agricultural trade and other issues of ‌note, the ministry said.

Both sides will ⁠continue ⁠to use the council to address trade concerns, expand cooperation and reduce outstanding issues, it added.


IMF Says More Work Needed on Lebanon Reforms

A man walks past Lebanon's Central Bank headquarters in Beirut on November 10, 2026. (AFP)
A man walks past Lebanon's Central Bank headquarters in Beirut on November 10, 2026. (AFP)
TT

IMF Says More Work Needed on Lebanon Reforms

A man walks past Lebanon's Central Bank headquarters in Beirut on November 10, 2026. (AFP)
A man walks past Lebanon's Central Bank headquarters in Beirut on November 10, 2026. (AFP)

The International Monetary Fund said on Friday that more work was needed to reach an agreement on restructuring Lebanon's banking sector, one of the steps towards unlocking billions of dollars in financial assistance.

An IMF staff-level agreement reached in April 2022 laid out conditions to unlock assistance, including a law on the distribution of losses in the banking sector, known as the financial gap law, which parliament has still not voted on.

In a statement at the end of meetings that began on Tuesday, the IMF said "there was progress in further clarifying the approaches under consideration by the Banque du Liban (BdL) and the Government regarding banking sector reform, the draft financial regulation law and the recovery of deposits, and aligning them with international standards".

It however noted that "further work is needed to reach an agreement on a strategy for an effective and durable restructuring of Lebanon's banking sector, leading to a sound and resilient system".

The cabinet submitted a draft of the law to parliament in 2025, but the text is contested by the banking sector and political parties, preventing a vote.

Differences over estimates of losses and their distribution have stalled negotiations with the IMF.

In 2022, the government estimated losses resulting from the 2019 financial crisis at around $70 billion, a figure believed to have increased over the last seven years during which the crisis has remained unresolved.

Lebanese Finance Minister Yassin Jaber said during a news conference that he hoped to "achieve progress that would allow us to reach an agreement on a program with the IMF and sign it during the first quarter of next year, and by its end at the latest".

Lebanon's economic crisis, which the World Bank has ranked among the worst since 1850, has deprived depositors of access to all of their funds, destroyed confidence in the banking sector and led to greater reliance on cash liquidity in various economic and commercial activities.


Silver Demand Seen Down 5% This Year Due to Weaker Jewellery Purchases

Silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. (Reuters)
Silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. (Reuters)
TT

Silver Demand Seen Down 5% This Year Due to Weaker Jewellery Purchases

Silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. (Reuters)
Silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. (Reuters)

Silver demand is expected to fall by 5% in 2026 due to weaker jewellery demand and lower consumption in solar cells, where high prices have accelerated substitution, research showed on Friday.

Research done by consultancy Metals Focus for the Silver Institute puts demand at 1.08 billion troy ounces this year.

Silver, used in jewellery, electronics, electric vehicles and solar panels as well as for investment, is ‌down 59% ‌to $50 an ounce since retail buying drove prices ‌to ⁠a record high ⁠of $121.6 in January.

The base for that rally was created in 2025, when silver surged 147%, as massive inflows of the metal to US inventories due to tariff uncertainty and into silver-backed exchange-traded products (ETPs) tightened liquidity in the London market.

This year, expectations for higher interest rates, a stronger dollar and higher bond yields have weighed on investment ⁠sentiment.

Silver released through ETP selling, outflows from stocks ‌in the US and a smaller ‌market deficit improved liquidity in the physical market, the Silver Institute and ‌consultancy Metals Focus said on Friday.

Metals Focus sees net ETP ‌outflows of 45 million ounces this year after 278 million ounces of inflows in 2025.

As of early November, ETP holdings stood at 1.25 billion ounces.

Industrial demand is expected to fall by 3% in 2026 as installations ‌in photovoltaics have fallen short of expectations, particularly in China, while January's record silver prices accelerated ⁠substitution.

Meanwhile, demand ⁠for jewellery and silverware is forecast to decline by 22% and 17%, respectively, as higher prices and weaker rural spending in India encouraged purchases of smaller, lighter products.

Demand in China and the US is also subdued. Strong retail investment in late 2025 and early 2026 gave way to far more subdued buying from March as silver prices fell, Metals Focus said.

It expects global bar and coin demand to fall 2% this year, with US retail investment hitting its lowest level since 2010.