In this Global Platform video, Farooq Shaikh, CEO, LogiPoint, identifies the key characteristics that make Saudi Arabia a competitive location for logistics and transport activities in the wake of the Covid-19 pandemic. Along with new warehousing developments in Modon and its strategic position along global trade routes, the Kingdom is targeting net-zero and strategic diversification goals through Vision 2030 to propel its economy into the future.
Logistics and supply chains play an integral role in our daily life. We saw a great example of this during the Covid-19 pandemic when everything required delivery, and that is the reason why the transport and logistics sector has the second-highest carbon footprint globally. In Saudi Arabia, the leadership is cognizant of the role that the country could play in environmental and socio-economic development globally. It could also be an international logistics hub in the future.
This is reflected in how Vision 2030 emphasizes the environmental, social, and governance (ESG) goals of reducing the Kingdom’s carbon footprint and net emissions, increasing the ratio of renewable energy production, and reducing global methane emissions. Similarly, providing a healthy lifestyle supported by training and education, and adequate social protection have been key initiatives of Vision 2030.
Transport and logistics are key components of Vision 2030. The initiatives taken by the government as well as by the private sector have provided important challenges and opportunities in regards to socio-economic and environmental development, which varies from region to region and country to country. We standardized transparent reporting and measurement, which could provide a framework. We are investing in green buildings, green technologies, recycled materials, energy efficiency, and minimizing waste. Our Warehouse Village Five and United Warehouse Company in Modon are a testament to that commitment.
We have designed processes and procedures to minimize our carbon footprint. We were among the first organizations in the country that realised the value of a female workforce. Our social inclusion is based on merit, without any consideration for nationality, ethnicity, or gender. Saudi Arabia, due to its geography, is the gateway to three different continents where we can reach over 1 billion people in fewer than two days of sailing time.
LogiPoint, together with Mawani, is working towards realizing a center for the Middle East, East Africa, and the Eastern Mediterranean. We are not only on the main east-west trade route but also at the center of it, so that we can provide a buffer to anyone who is impacted by black swan events. In order to achieve that future, investment in the sector has to be flexible enough to incorporate any sudden changes in supply chains.
Saudi Arabia has been progressing by leaps and bounds over the past few years when it comes to digital transformation, including plans for NEOM, and the processes of Saudi Customs, the Saudi Food and Drug Authority (SFDA), Modon, and the General Directorate of Civil Defence. More than 65% of Saudi Arabia’s population is below 30 years of age. That is why you see Saudi Arabia becoming the next center for e-commerce and digital innovation. All the initiatives under Vision 2030 are bearing fruit.
We are in the right place at the right time with the right mix, and the right type of environment is being provided to the country at this point in time.
