Page 36 - Logistics News - September October 2023

S A UD I A R ABI A

The world’s newest logistics hub

With its strategic location and thriving industry, Saudi Arabia is poised to step into the global logistics spotlight.
ndustry is the backbone of much of the economic high-quality systems and services and applying competitive
development that is happening today, and logistics is its key business models to the sector to enhance productivity and
I enabler. sustainability in logistics.

In recent times, it has become evident that the supply chains A direct outcome and proof of the consolidated efforts by
we depend upon are not as robust as previously believed. the Ministry of Transport and Logistics Services (MOTLS) to
Factors such as global trade tensions, geopolitical disputes transform the Kingdom’s logistics sector is its vastly improved
and the impact of the pandemic have led to the scattering and performance on the latest Logistics Performance Index (LPI)
disturbance of these supply chains. As a result, the logistics published recently by the World Bank. Saudi Arabia moved up 17
sector has assumed a central role within the industry, acting ranks to reach 38 position among the139 countries included in
th
as a vital link between markets, consumers and the ongoing the index.
equilibrium between supply and demand.
The country’s world-class infrastructure, combined with
This has helped elevate the sector to the point where it recent legal and regulatory ecosystem transformations that it
now plays a key role in the socio-economic transformation has undertaken, has positioned Saudi Arabia well to be a strong
of nations, the creation of high-value jobs and connections of competitor in the logistics space. One of the drivers of this
people to essential services such as health care and education. transformation, and which was a key outcome of Vision 2030,
Logistics often is highlighted as leading the current trend is the National Industrial Development and Logistics Program
towards globalisation and promoting competitiveness. (NIDLP), whose mission is to make the country an industrial
powerhouse and global logistics hub. Working at the nexus of
As the Kingdom of Saudi Arabia diversifies its economy, four key sectors – energy, industry, mining and logistics services

guided by its ambitious Vision 2030, logistics is at the core – NIDLP aims to improve logistics services, including making

of its economic diversification programme. With the volume import and export processes more accessible; enhancing
of current investments currently reaching $559-million, the infrastructure, including ports, air, rail and roads; transforming
Kingdom’s logistics sector is witnessing unprecedented legal and regulatory frameworks; and privatising the sectors that
transformation as the nation strives to play a leading role in make sense.
global industry and trade.
global industry and trade.
In alignment with NTLS, trade zones such as Jazan
In 2021, Saudi Arabia launched its comprehensive National Economic City are being introduced with additional duty
In 2021, Saudi Arabia launched its comprehensive National

Strategy for Transport and Logistics Services (NTLS) to
Strategy for Transport and Logistics Services (NTLS) to exemptions, subsidies and benefits. New transport
systematically advance the
systematically advance the infrastructure developments such as Jazan Airport, NEOM Bay
logistics industry by building
logistics industry by building Airport, SPARK, expansion of the Red Sea Gateway Terminal

Suliman Almazroua, CEO of the
National Industrial Development
and Logistics Program (NIDLP).
King Abdulaziz
International Airport.

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