Saudi Arabia Freight and Logistics Market Size, Share and Industry Growth 2024-2032

Saudi Arabia Freight and Logistics Market Outlook, Key Players and Report

Saudi Arabia Freight and Logistics Market Outlook

According to the report by Expert Market Research (EMR), the Saudi Arabia freight and logistics market size reached a value of USD 31.82 billion in 2023. Aided by strategic governmental initiatives, infrastructural developments, and a robust increase in trade volumes, the market is projected to further grow at a CAGR of 5.5% between 2024 and 2032 to reach a value of USD 51.60 billion by 2032.

Freight and logistics refer to the management and movement of goods, products, or cargo from one location to another, encompassing various processes involved in the planning, coordination, transportation, and storage of goods throughout the supply chain. Freight logistics involves the strategic planning and execution of transportation, warehousing, distribution, and inventory management activities to ensure the timely and efficient delivery of goods to their intended destinations.

Saudi Arabia’s strategic geographical location, bridging three continents – Asia, Africa, and Europe – is a major factor harnessing the Saudi Arabia freight and logistics market growth. The Kingdom has harnessed this advantage, investing heavily in state-of-the-art transportation infrastructure, including ports, railways, and road networks. These investments are part of Saudi Vision 2030, an ambitious blueprint aimed at diversifying the economy away from oil, fostering economic development, and establishing the country as a leading global logistics hub.

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Efforts to modernise customs processes and streamline trade procedures are underway to facilitate cross-border trade and improve the efficiency of freight logistics in Saudi Arabia. As per the Saudi Arabia freight and logistics market outlook, the implementation of electronic customs clearance systems, simplified import/export procedures, and trade facilitation agreements with key trading partners aim to reduce paperwork, expedite customs clearance, and enhance trade flows. The integration of customs systems with digital platforms and interoperable trade networks enhances transparency, reduces delays, and lowers transaction costs for importers and exporters.

The freight and logistics sector in Saudi Arabia encompasses a wide range of services, from cargo transportation and warehousing to freight forwarding and supply chain management. The government’s proactive approach, through regulatory reforms and the fostering of public-private partnerships, has significantly enhanced the efficiency and competitiveness of the sector. As per the Saudi Arabia freight and logistics market analysis, initiatives such as the National Industrial Development and Logistics Program (NIDLP) are pivotal, aiming to catalyse investment, spur industrial growth, and streamline logistics operations across the Kingdom.

In the realm of sea freight, Saudi Arabia’s ports are witnessing unprecedented upgrades and expansion projects. The Kingdom’s major ports, including King Abdullah Port and Jeddah Islamic Port, are central to its logistics strategy, serving as key nodes in international trade routes and propelling the Saudi Arabia freight and logistics market expansion. These ports are being equipped with advanced technologies for automated container handling and real-time tracking, significantly boosting their capacity and operational efficiency.

The outsourcing of logistics functions to third-party logistics providers (3PLs) is gaining traction among businesses in Saudi Arabia seeking to optimise their supply chain operations and focus on core competencies. 3PL companies in the freight and logistics market in Saudi Arabia offer a range of services including transportation, warehousing, inventory management, freight forwarding, and value-added logistics services tailored to the specific needs of their clients. By leveraging the expertise, resources, and network of 3PL providers, companies can improve flexibility, scalability, and cost-effectiveness in their logistics operations.

Rail and road transportation networks are also undergoing significant enhancements. The Saudi Railways Organisation (SRO) and the Saudi Railway Company (SAR) are at the forefront of expanding the Kingdom’s rail infrastructure, linking major industrial and economic zones with ports and urban centres which is fuelling the Saudi Arabia freight and logistics market share. This expansion not only facilitates the seamless movement of goods across the country but also integrates with regional rail projects, further solidifying Saudi Arabia’s position as a logistical nexus.

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Saudi Arabia Freight and Logistics Market Segmentation

The market can be divided based on function and end use.

Market Breakup by Function

  • Courier, Express and Parcel
    • Domestic
    • International
  • Freight Forwarding
    • Railways
    • Airways
    • Roadways
    • Waterways
  • Freight Transport
    • Railways
    • Airways
    • Roadways
    • Waterways
  • Warehousing and Storage
    • Temperature Controlled
    • Non-Temperature Controlled
  • Others

Market Breakup by End Use

  • Manufacturing
  • Consumer Goods and Retail
  • Food and Beverages
  • IT Hardware and Telecom
  • Healthcare
  • Chemicals
  • Construction
  • Automotive
  • Oil and Gas
  • Others

Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Saudi Arabia freight and logistics market. Some of the major players explored in the report by Expert Market Research are as follows:

  • Kuehne + Nagel Management AG
  • Deutsche Post AG
  • UPS Express Private Limited
  • The Aramex Group
  • FedEx Corporation
  • Agility Public Warehousing Company K.S.C.P.
  • Mosanada Logistics Services
  • Zajil Express
  • Alma Express
  • SMSA Express Transportation Company Ltd.
  • Wared Logistics
  • Saudi Logistics Services Company (SAL)
  • Saudi Post Corporation
  • United Warehouse Co. Ltd.
  • Others

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