Transport & Logistics
From The Report: Saudi Arabia 2025
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Saudi Arabia’s transport and logistics industry continues to experience robust expansion and is a pillar of Vision 2030, the national blueprint for economic diversification. Sector growth is driven by the roadmap’s aims to position the Kingdom as a global logistics, aviation and trading centre. Giga-projects, including port and airport upgrades and the construction of large-scale new cities, coupled with rising tourism and population growth, are driving development in the sector backed by significant public funding and growing public-private partnerships. Ongoing metro and high-speed rail construction and expanded bus networks are enhancing urban and intercity connectivity, particularly in Riyadh, Makkah and Jeddah. The Kingdom’s nascent electric vehicle industry is poised to flourish in the coming years. Underpinning Saudi Arabia’s transport networks and logistics industry is a focus on renewable energy use, technological innovation and digital infrastructure as the Kingdom seeks sustainable economic growth beyond oil.

This chapter contains an interview with Saleh bin Nasser Al Jasser, Minister of Transport and Logistics Services; Gabriel Semelas, President, Airbus Africa and Middle East; and Anef Abanomi, President, Saudi Post and Logistics Services Company.

Articles from this Chapter

Overview

International gateway: Increased investment, private participation and digital integration are reshaping the Kingdom’s role in global trade and mobility
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Saudi Arabia’s transport and logistics industry continues to experience robust expansion and is a pillar of Vision 2030, the national blueprint for economic diversification. Sector growth is driven by the roadmap’s aims to position the Kingdom as a global logistics, aviation and trading centre. Giga-projects, including port and airport upgrades and the construction of large-scale new cities, coupled with rising tourism and population growth, are driving development in the sector backed by significant public funding and growing public-private partnerships (PPPs). Ongoing metro and high-speed rail construction, and expanded bus networks are…

Interview

Strengthened competitiveness: Saleh bin Nasser Al Jasser, Minister of Transport and Logistics Services, on creating a gateway for the movement of goods
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Interview: Saleh bin Nasser Al Jasser, Minister of Transport and Logistics Services, on creating a gateway for the movement of goods In what ways does the National Transport and Logistics Strategy (NTLS) align with Vision 2030 in positioning the Kingdom as a global logistics hub? SALEH BIN NASSER AL JASSER: Saudi Arabia is privileged with a unique geographical position connecting Europe, Asia and Africa. This advantage allows the Kingdom to serve as a natural gateway for trade and the movement…

Analysis

Reshaping aviation: Poised for substantial growth, success in the segment depends on execution of strategy and timely delivery of infrastructure
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Saudi Arabia’s aviation industry is a cornerstone of Vision 2030, contributing to economic diversification and propelling the tourism, infrastructure and logistics sectors as it positions itself as a leading global air transport hub. The Kingdom aims to nearly triple annual passenger traffic to 330m by 2030, expand connectivity to over 250 international destinations from its 29 airports and increase annual air freight capacity five-fold to 4.5m tonnes of cargo by 2030. These ambitious targets underscore the importance of the aviation sector in a broader strategy to reduce the Kingdom’s reliance on oil revenue. Saudi Arabia’s aviation sector…

Analysis

Sector developments: Sustained international demand drives growth, as eco-friendly fuels play a growing role in sector strategy
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Global tourism activity has continued its recovery momentum after the Covid-19 pandemic, supported by sustained investment in tourism infrastructure and expanding air connectivity. This trend is expected to continue over the medium term, underpinned by rising disposable incomes in key source markets and targeted government strategies to position tourism as a driver of economic diversification. Revenue performance has strengthened across the global aviation industry. After several years of volatility, the sector returned to profitability in 2023 and has since moved into a phase of stabilisation. According to industry estimates, global aviation…

Interview

Take to the skies: Gabriel Semelas, President, Airbus Africa and Middle East, on how the aviation sector contributes to long-term diversification targets and effective strategies to cultivate expertise
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Interview: Gabriel Semelas, President, Airbus Africa and Middle East, on how the aviation sector contributes to long-term diversification targets and effective strategies to cultivate expertise In what ways is the growing aviation ecosystem contributing to Vision 2030 goals of economic diversification and connectivity? GABRIEL SEMELAS: Passenger volumes are rising rapidly, and several domestic and regional routes are now among the busiest worldwide. This reflects efforts to position the Kingdom…

Interview

Enhanced efficiency: Anef Abanomi, President, Saudi Post and Logistics Services Company, on how digitalisation supports growth and ways the sector is addressing sustainability considerations
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Interview: Anef Abanomi, President, Saudi Post and Logistics Services Company, on how digitalisation supports growth and ways the sector is addressing sustainability considerations In what ways are emerging technologies being leveraged to modernise logistics and e-commerce? ANEF ABANOMI: Technology investment in the postal and logistics sector falls into two categories: data capture and data processing. In capture, the industry is adopting tools such as radio frequency identification, automated…

Analysis

Enhanced mobility: Urban solutions across emerging markets lower carbon emissions and reduce congestion, contributing to economic growth
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Transport inefficiencies are among the most persistent barriers to growth in emerging markets, particularly in urban areas. Congestion, pollution and unreliable mobility systems impose measurable costs on productivity and competitiveness. Globally, traffic congestion is estimated to cost some $70.4bn per year in lost time. Though statistics vary, most estimates show the transport sector regularly accounting for one-fifth of total greenhouse gas emissions. For emerging markets, the challenge is twofold: reducing externalities that undermine growth; and providing affordable, efficient mobility for rapidly expanding urban populations. Electrified…