Kingdom Strengthens Logistics Leadership with a Market Exceeding $55 Billion

by 15 June، 2026
Kingdom Strengthens Logistics Leadership with a Market Exceeding $55 Billion
Kingdom Strengthens Logistics Leadership with a Market Exceeding $55 Billion

The Kingdom has reinforced its growing position as one of the world’s leading logistics hubs with the launch of the Supply Chain and Procurement Conference 2026 in Dammam, bringing together senior officials, industry leaders, executives, and specialists from the economic, industrial, and logistics sectors.

The conference comes at a time when global supply chains are undergoing significant changes driven by geopolitical tensions, technological developments, and economic challenges, prompting nations worldwide to strengthen the resilience of their logistics networks.

Speaking on behalf of Minister of Industry and Mineral Resources Bandar Alkhorayef, Deputy Minister for Industrial Development Abdulaziz Al-Ahmadi emphasized that supply chains have evolved beyond routine operational functions and now serve as a key pillar of economic security, industrial growth, and investment attraction.

He noted that Saudi Vision 2030 places supply chain resilience and logistics development among its highest priorities to position the Kingdom as a global industrial and logistics hub connecting Asia, Africa, and Europe.

Advanced Infrastructure Supporting Growth

Conference participants highlighted the Kingdom’s strategic advantages, including its location along major global trade routes and its advanced infrastructure network.

The country is home to more than 40 industrial cities supported by integrated transportation systems connecting ports, airports, industrial zones, and logistics facilities across the nation.

Government incentives and investment support programs have further strengthened the attractiveness of the industrial and logistics sectors, helping local industries withstand global supply chain disruptions and improve operational efficiency.

These strengths have enabled the Kingdom to maintain smooth flows of goods and services despite ongoing international challenges.

Logistics Market Surpasses $55 Billion

Saleh Al-Shabnan, Chairman of the Supply Chain and Procurement Association, revealed that the Kingdom’s logistics market has now exceeded $55 billion, driven by major national projects and continued investments in transportation, warehousing, and logistics services.

He explained that the national logistics ecosystem has successfully developed an integrated network that supports the movement of goods, services, and energy while maintaining regional air, land, and maritime connectivity during exceptional regional circumstances.

According to Al-Shabnan, this continued growth reflects the success of national strategies aimed at transforming the Kingdom into a globally competitive logistics center.

Record Growth in Aviation

The Kingdom’s aviation sector achieved remarkable growth during 2025, with passenger traffic surpassing 140 million travelers across more than 980,000 flights.

In addition, more than 1.18 million tons of air cargo were handled, reflecting the rapid expansion of aviation and logistics activities throughout the country.

At the same time, several major logistics projects continue to advance, including the King Salman Global Maritime Industries and Services Complex, the strategic Landbridge Project, and the development of 59 logistics centers across the Kingdom.

These projects are expected to improve supply chain efficiency, reduce transportation times, and strengthen the Kingdom’s competitiveness in global trade.

Artificial Intelligence Driving the Future

Digital transformation remains one of the most important pillars of logistics development, with increasing adoption of artificial intelligence, automation, and advanced analytics to optimize supply chain operations and improve efficiency.

Experts believe these technologies will create smarter and more resilient logistics networks capable of adapting to future challenges while supporting the Kingdom’s preparations for major international events, including Expo 2030 and the FIFA World Cup 2034.

As investments, infrastructure projects, and digital transformation initiatives continue to accelerate, the Kingdom is further strengthening its position as a global logistics hub and advancing toward the goals of Vision 2030.

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