Saleh bin Nasser Al-Jasser

Saudi Arabia has made significant advancements in the logistics sector, including the launch of logistics centers, initiatives for efficiency improvement, and achievements such as a notable rise in the global Logistics Performance Index.

It is a pleasure to be with you today at the Supply Chain and Logistics Services Conference, which represents a specialized platform for exchanging visions, ideas, and experiences about the best methods and latest practices in the logistics and supply chain sector.

The Kingdom of Saudi Arabia—with the support of the wise leadership—is currently witnessing an unprecedented leap in the growth and development of the transport and logistics sector business since His Highness the Crown Prince launched the National Strategy for Transport and Logistics Services.

In order to enhance the efficiency of the sector, the Crown Prince launched the General Scheme for Logistics Centers, which includes 59 logistics centers on an area of 110 million sqm, distributed in a practical and scientific way across various regions of the Kingdom to develop the efficiency of supply chains and raise the competitiveness of the logistics sector.

The Ministry of Transport and Logistics has also launched a package of initiatives to boost performance efficiency, re-engineer procedures, and apply international best practices in this vital sector in order to enhance the Kingdom’s position as a global logistics center.

During the past short period, a special and integrated logistics zone was launched at King Khalid International Airport in Riyadh, with Apple announced as the first international investor, while 19 other logistics zones were launched across all regions of the Kingdom. In addition, the ministry has launched a unified logistics license to develop the work environment, facilitate licensing procedures, and speed up business in the logistics sector. In addition, the two-hour customs clearing initiative was launched in cooperation with the relevant government authorities.

The logistics sector in the Kingdom witnessed notable achievements in 2023, with Saudi Arabia jumping 17 places in the global Logistics Performance Index issued by the World Bank, advancing from 55th place to 38th.

In the ports sector, national and international investments from major companies are ongoing in the logistics sector. In the past two years, agreements have been signed to establish 12 logistics zones by the private sector in Jeddah Islamic Port, King Abdulaziz Port in Dammam, and King Fahad Industrial Port in Yanbu, with an investment value of approximately SAR4.2 billion, which will contribute to creating more than 13,000 direct and indirect jobs in the logistics sector.

The Kingdom has also increased its capabilities in the maritime navigation network connectivity index, according to the UNCTAD report for 3Q2023, issued by the United Nations Conference of Trade and Development, by increasing navigational shipping services to 24 new services in 2023, which contributes to enhancing trade and export movement and increasing the effectiveness of linking the Kingdom to global markets.

As for rail freight, more than 12 million tons were transported during the first half of 2023, an increase of 13% over the same period in 2022, contributing to a reduction of more than 970,000 truck trips.

In the field of air transport, 1H2023 witnessed a significant increase in air traffic, passenger rates, and growth in air cargo business in line with the objectives of the aviation strategy to raise air cargo capacity to 4.5 million tons and boost airline connections to 250 destinations to and from the Kingdom’s airports by 2030.

All this progress came with the support and empowerment of His Highness the Crown Prince and his continuous support to strengthen the Kingdom’s position as a global logistics center in accordance with the goals of the National Strategy for Transport and Logistics Services.

Our efforts are integrated with the public and private sectors to strengthen supply chains and raise the Kingdom’s ranking among the top 10 countries in the Logistics Performance Index by 2030, develop the logistics services sector, expand investment opportunities, and devote partnerships with the private sector, in this strategic sector, which is one of the main pillars supporting economic and developmental diversity in the Kingdom.