From its current position as a 5.6% contributor to the nation's GDP, Saudi Arabia's logistics sector is being supercharged by colossal investment and ambitious reforms, setting a course to double its economic impact and transform the kingdom into a global supply chain powerhouse by 2030.
Key Takeaways
- Saudi Arabia's logistics sector contributed approximately 5.6% to the national GDP in 2022, with projections to reach 10% by 2030 under Vision 2030 initiatives
- The total value of the Saudi logistics market was estimated at SAR 135 billion (USD 36 billion) in 2023, growing at a CAGR of 7.2% from 2019-2023
- Logistics and supply chain services accounted for 52% of the sector's revenue in 2022, followed by freight forwarding at 28%
- Saudi Arabia invested SAR 180 billion in logistics infrastructure from 2021-2025 as part of the National Transport and Logistics Strategy (NTLS)
- The Riyadh Dry Port expansion added 2 million TEU capacity by 2023, costing SAR 2.5 billion
- King Abdullah Port received SAR 7 billion investment for Phase III expansion, increasing capacity to 7.6 million TEU annually by 2025
- Saudi Arabia's road network spans 470,000 km, with 70,000 km upgraded for heavy freight by 2023 at SAR 25 billion cost
- Annual road freight volume reached 1.2 billion tons in 2023, accounting for 72% of total inland freight
- The truck fleet in Saudi Arabia grew to 850,000 units in 2023, with 40% GPS-enabled for tracking
- King Abdulaziz International Airport (KAIA) handled 800,000 tonnes of cargo in 2023, up 12% YoY
- Riyadh's King Khalid International Airport (KKIA) air cargo throughput reached 650,000 tonnes in 2023
- Dammam King Fahd International Airport processed 250,000 tonnes of freight in 2023, focusing on exports
- Jeddah Islamic Port handled 8.1 million TEU in 2023, the busiest port in the kingdom
- King Abdullah Port (Rabigh) throughput reached 2.9 million TEU in 2023, up 25% YoY
- Dammam Port processed 2.5 million TEU and 40 million tons bulk in 2023
Saudi Arabia's logistics industry is rapidly growing due to massive investments and diversification efforts.
Air Freight and Logistics Hubs
- King Abdulaziz International Airport (KAIA) handled 800,000 tonnes of cargo in 2023, up 12% YoY
- Riyadh's King Khalid International Airport (KKIA) air cargo throughput reached 650,000 tonnes in 2023
- Dammam King Fahd International Airport processed 250,000 tonnes of freight in 2023, focusing on exports
- Air freight market in Saudi Arabia valued at USD 2.8 billion in 2023, growing 9% annually
- 45% of Saudi air cargo is perishables like pharma and food, totaling 1.2 million tonnes in 2023
- New cargo terminal at Jeddah Airport adds 300,000 tonnes capacity, operational since 2023
- Saudia Cargo fleet expanded to 20 freighters in 2023, operating 1,200 weekly flights
- Air express parcels handled 15 million units in 2023, up 35% due to e-commerce
- KKIA free trade zone processed USD 5 billion in cargo value in 2023
- Drone delivery trials covered 10,000 flights for 50 kg payloads in 2023 across Riyadh
- Air cargo export share from Saudi was 60% electronics and machinery, 420,000 tonnes in 2023
- Prince Mohammad bin Abdulaziz Airport (Madinah) cargo up 20% to 120,000 tonnes in 2023
- 12 new air cargo routes launched in 2023 connecting to Asia and Europe
- Cold chain air freight capacity increased by 25% to 200,000 tonnes in 2023
- Airport logistics revenue totaled SAR 6 billion in 2023 across GACA airports
- KAIA ranked top 20 globally for cargo volume with 1.5 million tonnes total throughput 2023 incl. pax belly
- E-freight adoption reached 95% for air cargo documentation in Saudi airports 2023
- Logistics hubs at airports employed 25,000 workers in 2023
- Air waybill processing time reduced to 2 hours average in 2023 via automation
- Pharma air freight imports hit 180,000 tonnes valued at SAR 30 billion in 2023
Air Freight and Logistics Hubs Interpretation
Saudi Arabia is not just moving boxes but strategically building a high-speed, cold-chain fortified trade bridge to the world, powered by a surge in exports, e-commerce, and enough perishables to make a pharaoh's tomb blush.
Infrastructure Investments
- Saudi Arabia invested SAR 180 billion in logistics infrastructure from 2021-2025 as part of the National Transport and Logistics Strategy (NTLS)
- The Riyadh Dry Port expansion added 2 million TEU capacity by 2023, costing SAR 2.5 billion
- King Abdullah Port received SAR 7 billion investment for Phase III expansion, increasing capacity to 7.6 million TEU annually by 2025
- Jeddah Islamic Port upgraded its container terminal with SAR 4.2 billion, handling 8.1 million TEU in 2023
- The construction of Dammam Logistics Park Phase 1 completed with 1.5 million sqm warehousing at SAR 3 billion cost
- Saudi Arabia allocated SAR 12 billion for rail infrastructure under the North-South Railway expansion by 2024
- New cargo city at King Khalid International Airport developed with SAR 5 billion investment, adding 1 million tonnes capacity
- Jubail Commercial Port expanded by 1.2 million TEU with SAR 2.8 billion funding in 2023
- Logistics parks development reached 15 operational sites covering 12 million sqm by 2023, with SAR 45 billion total investment
- SAR 8.5 billion invested in smart logistics corridors connecting Riyadh to Jeddah and Dammam
- The Red Sea Port modernization project cost SAR 6 billion, enhancing capacity by 40% to 2.5 million TEU
- Over 500 km of dedicated freight rail lines under construction with SAR 15 billion budget by 2025
- Riyadh Ultra Logistics Park built with SAR 4 billion, featuring 2 million sqm automated warehouses
- Yanbu Commercial Port received SAR 3.2 billion for deep-water berths addition
- National Logistics Network includes 22 dry ports planned with SAR 20 billion investment
- SAR 10 billion for highway widening projects dedicated to trucks between major industrial cities
- Prince Sultan bin Abdulaziz Airport cargo terminal expanded by SAR 1.8 billion to 500,000 tonnes capacity
- Qassim Logistics City developed at SAR 2.7 billion, covering 5 million sqm
- Total inland container depots (ICDs) increased to 12 by 2023 with SAR 7.5 billion cumulative investment
- SAR 5.5 billion for digital twin technology implementation across 10 major logistics hubs
Infrastructure Investments Interpretation
While the numbers are impressively colossal—with billions flowing into ports, rails, and automated warehouses—this isn't just a spending spree; it's Saudi Arabia meticulously building the circulatory system for its future economy, ensuring ambition never gets bottlenecked by logistics.
Maritime and Ports
- Jeddah Islamic Port handled 8.1 million TEU in 2023, the busiest port in the kingdom
- King Abdullah Port (Rabigh) throughput reached 2.9 million TEU in 2023, up 25% YoY
- Dammam Port processed 2.5 million TEU and 40 million tons bulk in 2023
- Total container throughput across Saudi ports was 14.5 million TEU in 2023
- Yanbu Commercial Port handled 1.8 million tons of crude oil exports daily average in 2023
- Jubail Port throughput 85 million tons in 2023, 70% industrial products
- Red Sea ports collectively managed 3.2 million TEU in 2023
- 1,200 vessel calls recorded at Saudi ports in 2023, average dwell time 1.5 days
- Liquid bulk cargo at Ras Tanura Port reached 250 million tons annually in 2023
- Port of Jazan throughput up 30% to 1.2 million TEU in 2023 due to agri-exports
- Shore power installation at 5 major ports reduced emissions by 15% in 2023
- Container vessel size average increased to 12,000 TEU at Jeddah Port in 2023
- Dry bulk imports at Dammam Port 25 million tons grains and minerals in 2023
- Port community system (PCS) digitized 98% of transactions across Mawani ports in 2023
- New berths at King Abdullah Port add 2.2 million TEU capacity by 2024
- Cruise port visits totaled 450 in Jeddah 2023, supporting logistics for 500,000 passengers
- LNG imports at 8 terminals reached 15 million tons in 2023
- Port tariffs reduced by 10% in 2023 to boost competitiveness
- 75% of Saudi non-oil exports routed via sea, 9.5 million tons value SAR 120 billion in 2023
- Automated gate systems at Jeddah Port processed 2.5 million trucks in 2023
Maritime and Ports Interpretation
Jeddah leads the kingdom with an ocean of containers, but across Saudi ports you’ll find a serious and witty race for efficiency, where bigger ships, smarter tech, and ambitious expansions are all docking to prove this logistics network is far more than just oil on troubled waters.
Market Size and Economic Impact
- Saudi Arabia's logistics sector contributed approximately 5.6% to the national GDP in 2022, with projections to reach 10% by 2030 under Vision 2030 initiatives
- The total value of the Saudi logistics market was estimated at SAR 135 billion (USD 36 billion) in 2023, growing at a CAGR of 7.2% from 2019-2023
- Logistics and supply chain services accounted for 52% of the sector's revenue in 2022, followed by freight forwarding at 28%
- E-commerce logistics demand surged by 45% in Saudi Arabia between 2021 and 2023, driven by platforms like Noon and Amazon
- The third-party logistics (3PL) market in Saudi Arabia reached USD 4.2 billion in 2023, with a forecasted CAGR of 8.5% until 2028
- Warehousing capacity in Saudi Arabia expanded by 25% from 2020 to 2023, totaling over 20 million square meters
- Logistics costs represent 13% of Saudi Arabia's GDP as of 2023, compared to the global average of 10.6%
- The freight and logistics market in Saudi Arabia is projected to grow from USD 28.5 billion in 2024 to USD 42.3 billion by 2029 at a CAGR of 8.2%
- Road freight transportation dominated the Saudi logistics market with a 58% share in terms of revenue in 2023
- The cold chain logistics segment grew by 12% annually in Saudi Arabia from 2021-2023 due to food import demands
- Saudi Arabia's logistics performance index (LPI) improved from 3.01 in 2018 to 3.26 in 2023, ranking 55th globally
- Investment in logistics reached SAR 50 billion in 2023, with 40% allocated to digital transformation projects
- The number of logistics companies operating in Saudi Arabia increased by 18% from 2021 to 2023, totaling over 5,000 firms
- Express delivery services market value hit SAR 12 billion in 2023, growing 22% YoY
- Logistics sector employment grew to 1.2 million jobs in 2023, representing 8% of total workforce
- Reverse logistics market in Saudi Arabia valued at USD 1.1 billion in 2023, with 15% growth due to e-commerce returns
- The Saudi logistics market is expected to attract USD 20 billion in FDI by 2025 under NTP
- Contract logistics segment contributed 35% to total logistics revenue in 2023
- Healthcare logistics grew by 28% in 2023, driven by pharmaceutical imports worth SAR 25 billion
- The overall freight forwarding market size was SAR 38 billion in 2023
Market Size and Economic Impact Interpretation
Saudi Arabia's logistics sector isn't just growing; it's on a carefully caffeinated Vision 2030 sprint to double its GDP contribution by transforming from a cost center into a revenue-generating, e-commerce-delivering, cold chain-building economic engine, albeit one that still pays a premium for its own ambition.
Road and Rail Logistics
- Saudi Arabia's road network spans 470,000 km, with 70,000 km upgraded for heavy freight by 2023 at SAR 25 billion cost
- Annual road freight volume reached 1.2 billion tons in 2023, accounting for 72% of total inland freight
- The truck fleet in Saudi Arabia grew to 850,000 units in 2023, with 40% GPS-enabled for tracking
- Average road freight speed improved to 65 km/h in 2023 from 52 km/h in 2019 due to dedicated lanes
- Rail freight transported 25 million tons in 2023, up 15% YoY, primarily dry bulk and containers
- North-South Railway handles 80% of phosphate and grain shipments, with 2,200 km track length
- 150 new electric trucks deployed for logistics in 2023 under green initiative, covering 5 million km
- Road accident rate for freight trucks dropped 22% in 2023 to 1.2 per million km due to safety tech
- Haramain High-Speed Rail carried 2.5 million passengers and 500,000 tons freight equivalent in 2023
- Container train services increased to 1,200 runs annually in 2023, moving 1.1 million TEU
- Riyadh-Dammam highway freight corridor handles 300,000 trucks monthly with 6 lanes each way
- Rail network expansion to 5,800 km by 2025 includes 1,200 km freight-dedicated lines
- Last-mile delivery trucks numbered 120,000 in urban areas, with 30% electric in Riyadh by 2023
- Fuel consumption for road logistics reduced by 18% per ton-km in 2023 through efficient routing
- GCC Railway project connects Saudi to UAE, handling pilot 100,000 tons in 2023
- Truck platooning trials covered 50,000 km in 2023, improving fuel efficiency by 12%
- Rail freight revenue reached SAR 4.5 billion in 2023, with 65% from industrial goods
- 4,500 km of smart roads with IoT sensors deployed for freight monitoring by 2023
- Intermodal freight volume grew 28% to 800,000 TEU via road-rail transfers in 2023
Road and Rail Logistics Interpretation
While Saudi Arabia’s logistics arteries are impressively fortified with billions spent on smarter, safer roads, its true economic pulse is increasingly measured by the efficient, data-driven rhythm of goods shifting from a booming truck fleet onto a growing and strategically expanding rail network.
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