Saudi crown prince launches plan to build logistics centers

Saudi Arabia’s Crown Prince HRH Mohammed bin Salman Al Saud launched Sunday a plan to build over 50 logistics centers to transform the Kingdom into a global logistical hub.

   The plan aims to develop the infrastructure of the Kingdom’s logistical sector, diversify the local economy, and enhance the status of Saudi Arabia as a leading investment destination, the Saudi Press Agency reported.

   The plan includes 59 centers occupying a total area of more than 100 square kilometers, with 12 in Riyadh, 12 in Mecca, 17 in the Eastern Region, and 18 in the other parts of the Kingdom.

   The logistical centers, to be completed by 2030, will enable local industries to export Saudi products with high efficiency and support e-commerce by facilitating a rapid link between logistics centers and distribution centers across the Kingdom, according to the report.
In March,
Saudi Aramco signed a shareholder agreement with DHL International to establish a new global procurement and logistics center in Saudi Arabia, according to a statement issued by the company.

The center, which is the first of its kind in the region, meets the needs of companies operating in the industrial, energy, chemical, and petrochemical sectors.

In order to develop and diversify the economy and reduce dependence on oil, Saudi Arabia launched Vision 2030; built on several economic and financial reforms, which aim to transform the structure of the Saudi economy into a diversified and sustainable economy focused on enhancing productivity, increasing the contribution of the private sector, and empowering the third sector.

Since the launch of Vision 2030, Saudi Arabia has succeeded in implementing many initiatives and structural reforms to enable economic transformation.

This transformation included several major efforts centered around enhancing local content, national industry, launching and developing promising economic sectors, and an enabling dimension aimed at maximizing the role of the private sector and SMEs, and enhancing the sustainability of public finances.

These structural shifts have contributed to strengthening the Kingdom’s economy and its ability to combat the COVID-19 pandemic in 2020. It is expected that the pace of this structural transformation will continue in the coming years, in light of a number of investment initiatives under the Public Investment Fund and leading companies. It is also expected that the localization of knowledge and innovative technologies will accelerate.

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