The Investment Opportunities in Saudi Supply Chains and Logistics Industry

Saudi Arabia is rapidly transforming into one of the Middle East’s most strategic logistics hubs, underpinned by its Vision 2030 goals. With significant investments in infrastructure, technology, and sustainability, the Kingdom is positioning itself as an ideal destination for foreign businesses seeking to optimise their supply chains and expand operations across the region.

At the heart of this shift is Vision 2030, Saudi Arabia’s roadmap to economic diversification. The supply chain sector is no longer just a supporting function, it’s a national priority. And with billions of riyals in strategic investments, the momentum is impossible to ignore.

In this blog, we’ll explore the Kingdom’s bold logistics evolution and show you how your company can capitalise on the opportunities emerging in this fast-moving sector.

An Overview of Saudi Logistics and Supply Chain Industry

Saudi Arabia's logistics sector holds strategic importance due to its geographic location, which serves as a natural bridge connecting Asia, Europe, and Africa. According to the Saudi Logistics Hub, the Kingdom aims to handle 40 million containers annually by 2030, up from just under 8 million in 2022. Vision 2030 aims to increase the private sector's GDP contribution to 65%, and logistics is central to this plan.

Saudi Arabia’s ambitious economic reform plan places logistics at the heart of its transformation agenda. The goal is to leverage the Kingdom's strategic location and unlock private sector potential. A cornerstone of this effort is the National Industrial Development and Logistics Program (NIDLP), which aims to position Saudi Arabia among the top 25 global logistics performers. Over SAR 135 billion (USD 36 billion) has been allocated to logistics development through NIDLP by 2030, with more than 200 strategic projects already in execution. These reforms encompass regulatory enhancements, infrastructure upgrades, and digital advancements, creating a robust ecosystem for international investment.

Infrastructure Expansion Projects

Massive investments in infrastructure underpin the Kingdom’s logistics ambitions. Developments include:

• Expansion of Ports: Jeddah Islamic Port handled over 5.5 million TEUs in 2023, and King Abdullah Port aims to exceed 25 million TEUs by 2030.
• New Transport Corridors: The Saudi Landbridge Project, valued at SAR 42 billion (USD 11.2 billion), will reduce cargo transit times between the Red Sea and the Arabian Gulf from 5–7 days to 18 hours.
• Airport Upgrades: The cargo capacity of King Khalid International Airport in Riyadh is projected to reach 1.5 million tonnes annually by 2030.

Special Economic Zones and Regulatory Incentives

Saudi Arabia is developing four major Special Economic Zones (SEZs), including King Abdullah Economic City (KAEC), Ras Al Khair, Jazan, and Cloud Computing SEZ in King Abdulaziz City for Science and Technology. These zones are tailored to support key sectors like advanced manufacturing, logistics, cloud computing, and mining services.

Each SEZ is strategically located to support industry-specific supply chains and trade flows. For instance, KAEC focuses on logistics and advanced manufacturing near Jeddah’s port, while the Ras Al Khair zone supports mining exports. The government has introduced a unified regulatory framework to streamline operations across zones, enhancing transparency and predictability for investors.

The SEZ initiative, backed by the Economic Cities and Special Zones Authority (ECZA), has already attracted over USD 2 billion in preliminary foreign direct investment (FDI) commitments and is expected to contribute SAR 70 billion (USD 18.6 billion) to GDP by 2030. This makes SEZs one of the most attractive channels for logistics and industrial investors entering the Saudi market. Read our blog to learn more about the Saudi Special Economic Zones

E-commerce and Digital Logistics

Saudi Arabia’s e-commerce market was valued at approximately USD 11.98 billion in 2023 and is projected to grow to USD 17.6 billion by 2027, reflecting a strong compound annual growth rate (CAGR) of 10.6%. This surge in digital retail activity has accelerated demand for advanced logistics solutions tailored to e-commerce needs.

Key opportunities for investors include:

• Last-mile delivery: Expected to become a USD 7.17 billion market by 2025, driven by increased urban online shopping and consumer expectations for faster delivery.
• Smart warehousing: Growing at over 14% CAGR, powered by investments in automation, robotics, and AI-driven inventory systems.
• Blockchain-based logistics platforms: Are being piloted at major Saudi ports to improve supply chain transparency, traceability, and security.

These digital logistics services are vital to supporting the Kingdom’s goal of becoming a regional e-commerce leader and reducing reliance on traditional retail supply chains.

Cold Chain and Food Security

The cold chain logistics market in Saudi Arabia was valued at USD 4.7 billion in 2023 and is forecast to reach USD 9.4 billion by 2030, growing at a CAGR of 10.6%. Demand is driven by:

• A 25% increase in perishable food imports
• Expansion of pharmaceutical logistics, which is estimated to grow 12% annually

Green and Sustainable Logistics

Saudi Arabia has committed to achieving net-zero emissions by 2060, creating opportunities for green logistics investments. Key initiatives include:

• SAR 2.6 billion (USD 700 million) in low-emission vehicle subsidies
• 500,000 sqm of planned solar-powered warehouses
• National carbon trading platform launching in 2025

How to Enter the Saudi Logistics and Supply Chains Market with Full Foreign Ownership

Thanks to progressive regulatory reforms and the introduction of Special Economic Zones (SEZs), foreign investors can now own 100% of their logistics and supply chain businesses in Saudi Arabia. Here are the main strategies to enter the market under full foreign ownership:

• Direct Investment in SEZs: SEZs such as KAEC and the Cloud Computing Zone offer streamlined processes for foreign investors, including 100% ownership rights, tax holidays, and simplified customs and visa procedures. These zones are particularly suitable for warehousing, e-commerce fulfilment, and regional logistics headquarters.
• New Company Formation through Invest Saudi: Foreign entities can establish a wholly owned local company via the Ministry of Investment (MISA) using digital portals. This route is ideal for firms seeking long-term operations outside SEZs while still benefiting from national incentives.
• Branch Office Setup: Global logistics providers can register a branch of their international company in Saudi Arabia without the need for a local sponsor, giving them complete control over operations and decision-making.

Before entering, it's recommended that businesses conduct a comprehensive market analysis, consult local legal and regulatory experts, and work closely with entities like the Saudi Logistics Hub and Economic Cities and Special Zones Authority (ECZA) to navigate setup procedures smoothly.

Saudi Arabia's supply chains and logistics industry stands as a beacon of investment potential amid its economic diversification efforts. With robust government support, strategic location, and rising regional demand, the Kingdom offers fertile ground for investors seeking growth, innovation, and sustainability in logistics.

Partner with TASC Outsourcing for Strategic Entry into Saudi Arabia

If you're considering investment or expansion into Saudi Arabia's thriving logistics and supply chain sectors, partnering with an expert makes all the difference. TASC Outsourcing is a trusted strategic partner with deep regional knowledge and industry expertise.

We assist businesses with:

• Market entry strategy and feasibility assessments
• Regulatory compliance and licensing
• Talent acquisition and workforce outsourcing

Get in touch with TASC Outsourcing today to explore how we can accelerate your entry into Saudi Arabia’s logistics market.