Saudi Arabia is accelerating efforts to position itself as a “connector economy” and a key global logistics hub, capitalizing on its strategic location between Europe, Asia, and Africa. This initiative forms a central part of Saudi Vision 2030, the country’s economic diversification plan designed to reduce reliance on oil exports and strengthen non-oil revenue streams.
The Kingdom is leveraging shifts in global supply chains and its access to major trade routes, including the Red Sea, which handles approximately 12% of annual container trade. Saudi Arabia’s strategy combines massive infrastructure investment, regulatory reforms, and the digital transformation of logistics services to enhance trade and connectivity across continents.
Key initiatives include:
- National Transport and Logistics Strategy (NTLS): Launched in 2021, NTLS aims to increase the transport and logistics sector’s contribution to GDP to 10% and raise annual non-oil revenues to SAR 45 billion ($12 billion) by 2030.
- Infrastructure Investments: Over $100 billion has been invested in port expansions, including King Abdullah Port and Jeddah Islamic Port, airport upgrades such as King Salman International Airport in Riyadh, and railway developments.
- Major Projects: The Saudi Landbridge, a 1,300-km rail network connecting the Red Sea to the Arabian Gulf, and NEOM city, which will feature an integrated logistics hub, are central to the strategy.
- Logistics Zones: The country is developing 59 integrated logistics areas and special economic zones with incentives for foreign direct investment and streamlined trade facilitation.
- Digitalization and Technology: The adoption of AI, automation, and data analytics is enhancing supply chain efficiency, reducing delays, and improving operational performance.
These combined efforts aim to transform Saudi Arabia into a critical trade bridge connecting continents, strengthening its role in global commerce while supporting long-term economic diversification and growth.
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