Saudi logistics to see 20% growth in next five years
Analysts speaking to Saudi Arabia’s Asharq Al-Awsat newspaper have forecast that the country’s logistics industry will experience significant growth in the coming five years.
Asharq Al-Awsat newspaper quoted the unnamed officials as saying that the 20% growth in logistics will be supported by the government’s expansion of industrial cities and ports. More than 45 km2 have been allotted to the Saudi Industrial Property Authority.
The Saudi Industrial Property authority encourages investment and employment through the development of industrial cities. Development covering 25 km2 in Jeddah has already begun while the other 20km2 are still underway.
Muwaffaq al-Harith, chairman of Saudi Al Harithy Company for Exhibitions (ACE), agrees that logistics flow in the Kingdom of Saudi Arabia is enhancing substantially due to sustained expansion in industrial and retail sectors.
Al-Harith added that the development of infrastructure for transport would improve the supply chain in light of implementation of the Kingdom’s vision 2020.
He explained that as industrial cities grow logistics services will be needed to keep up with the progress, which will present promising opportunities for specialised companies.
These reports come as Messe Frankfurt Middle East prepares for the first ever Materials Handling Saudi Arabia exhibition. Messe Frankfurt Middle East CEO Ahmed Pauwels says that the Saudi logistics market is “one of the most promising” in the world.