Saudi Arabia Freight And Logistics - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2025 - 2030)

Rising investment in infrastructure projects leading to smooth transportation supply chain in the country

• To enhance the road network in Saudi Arabia, the government has formulated plans to invest SAR 40 billion (USD 10.6 billion). In 2023, the government initiated the construction of four highway projects through the Public-Private Partnership (PPP) model. With the goal of transforming the country into a prominent transportation hub, the Kingdom has ambitious plans to invest over USD 147 billion in the near future, specifically targeting the development of the transportation and logistics industry.
• Over the past years, the maritime fleet of Saudi Arabia has experienced significant growth in terms of tonnage, boasting a fleet of 368 tankers and ships with a total capacity of 13.5 million tons. This substantial marine fleet plays a crucial role in the global maritime transport industry, which serves as the foundation for 90% of global trade. This reinforces Saudi Arabia's position and leadership on the international stage while also reaffirming its genuine ambition to establish itself as a global logistics center in alignment with the goals outlined in Vision 2030.

Saudi Arabia Freight And Logistics Market Trends

Saudi Arabia invested around USD 133 billion to boost the transport infrastructure of the economy

• As of February 2024, the Makkah region in Saudi Arabia has initiated 20 road projects valued at USD 373 million to enhance connectivity and travel within the area. These projects cover 385 km of roadways and include a 24 km direct route linking Jeddah to Makkah and the doubling of the 90 km Allaith-Makkah Road. Expansion of the Bisha-Raniyah-Al-Khurma Road is also planned. The road projects signify a substantial infrastructure investment focused on boosting connectivity and enriching transportation for both residents and visitors.
• In 2024, Saudi Arabia actively started working toward cementing its position in the aviation sector, which is in line with its ambitious Vision 2030. This vision aims to attract 120 million annual visitors by 2030 while simultaneously diversifying the economy away from oil dependence. To support this, the government has allocated USD 30.11 billion for investments in the aviation ecosystem. These investments will focus on upgrading domestic airports, bolstering local airlines, and enhancing supporting infrastructure.

Rising fuel prices due to Saudi Aramco price hikes, supported by government-led domestic fuel price reforms

• Saudi Aramco announced that starting from January 1, 2024, the retail price of diesel would surge by 53% to USD 0.3067 per liter. This marked the third increase since 2016. Also, prices for natural gas and other fuels saw an increase in 2024. These price hikes were part of the Saudi government's reforms aimed at restructuring domestic fuel prices. In November 2024, Saudi Arabia indicated plans to reduce prices for the majority of crude grades sold to Asia, starting December 2024, in response to the declining trend of the Middle East benchmark, Dubai.
• Saudi Aramco plans to cut its oil production capacity by 1.2 million barrels per day (bpd) in 2024, reflecting shifting global energy trends. For decades, Saudi Arabia has held the world's significant spare oil capacity, offering a buffer for global supplies in case of major disruptions. Despite being the largest oil exporter, the kingdom currently pumps around 9 million bpd, well below its 12 million bpd capacity due to production cuts agreed upon with OPEC and allies in 2023. OPEC anticipates a demand growth of 1.3 million bpd by the end of 2025.

Saudi Arabia Freight And Logistics Industry Overview

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support