Saudi Arabia’s Logistics Sector Expected to Boom

Image via Flickr by Wajahat Mahmood

Saudi Arabia has a thriving logistics sector right now and it is expected to boom over the next ten years. Industry experts say that consumer spending is going to see a 6.9 percent growth rate in 2015 alone, causing the logistics sector to see higher demand. That’s good news for this GCC region. The Middle East as a whole has also seen improved economic conditions

To organize growth and take advantage of the growing logistics industry, there is going to be a Trans 4 Saudi Arabia Exhibition. It is being hosted by Riyadh Exhibitions Company and Ramatan Exposition and Conference at the Riyadh International Convention and Exhibition Center on January 28, 2015. Businesses and investors in contracting, railways, stations, buses, and other logistics services are encouraged to attend and network.

The exhibition is an initiative to further expand the regional logistics sector in Saudi Arabia. It is a four-day event that showcases upcoming opportunities in GCC, such as courier services; air, land, and sea transportation; freight; distribution services; ERP systems; electronic data interchange systems, and more. The exhibition is actually the second annual event and high attendance is expected.

Even FedEx sees the value of operations in Saudi Arabia. FedEx Express is expanding in the country by partnering with Abdul Latif Jameel. They will provide international services for OEM customers. FedEx expects the demand for international shipping to grow by 5-8 percent by 2020. They think including Saudi Arabia in their transportation sectors is a smart financial move.

According to the Saudi Arabian General Investment Authority, the country’s logistics and transportation sector is expected to receive $100 billion in investments over the next ten years. By the end of 2015, Saudi Arabia’s logistics sector will have an estimated value of $17.9 billion. It is an excellent place for logistics businesses right now.

 

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