Saudi Arabia’s Investment Minister Khalid Al-Falih unveiled that the government plans to allow private operators to manage four Saudi airports during 2025.
According to the Arab News, the announcement was made during the Global Logistics Forum at the King Abdullah Financial Center in Riyadh on Sunday.
Private Sector Management
“The government is moving away from direct business involvement. Empowering and enabling the private sector is essential,” the Minister said.
Al-Falih explained that some Saudi airports and ports are privately operated such as Madinah airport and King Abdullah Port.
“In the coming months and years, you will see continued privatization, with four airports entering the market. This is just the beginning,” he added.
New Investment Law
The Minister also underscored that Saudi Arabia’s entrepreneurship sector is highly favorable. Meanwhile, the new investment law is capturing promising investments in logistics and transport.
The new law provides visitors with various features including stronger protections, adherence to the rule of law, fair treatment, property rights, robust intellectual property safeguards, and streamlined fund transfers.
Regionalized Supply Chain
Al-Falih stressed the significance of establishing a regionalized supply chain within the Gulf Cooperation Council.
“What is essential for us in the region is the regionalization of global supply chains. While globalization has benefitted humanity and the global economy, it is evolving toward a multi-hub regional logistics and transport system,” he explained.
Moreover, he indicated that Saudi Arabia is actively working to create its own regional logistics hub, and he anticipated “rapid progress.”
“The Middle East is at the forefront of developing its logistics and transport sector. We sit at the intersection of north-south and east-west routes, and we are actively creating our own regional logistics hub. We’re not starting from scratch; I anticipate rapid progress,” Al-Falih added.
Ports Expansion
In the same context, the Minister emphasized the need to develop and expand shipping ports and lanes to alleviate pressure on existing facilities.
“Currently, 30 ports handle 80 percent of maritime traffic, which is too much concentration. This will inevitably change,” he concluded.
Global Logistics Forum
Organized by the Ministry of Transport and Logistic Services, the Global Logistics Forum offers a valuable platform for logistics experts and leaders to collaborate and shape the sector’s future.
The three-day forum highlights important sessions and meetings covering the latest technological developments in the logistics sector, environmentally friendly technologies, and infrastructure investments.
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