Non-oil manufacturing growth is facilitated by launch of National Industrial Development and Logistics Program (NIDLP) in Jan 2019 by KSA government who is willing to spent SAR 100 Billion during 2019-2020 period.
Surge in manufacturing / industrial activities, burgeoning international trade, rising domestic consumption and ease in government regulations have collectively influence the warehousing demand in Saudi Arabia. GDP contribution of manufacturing sector in KSA was evaluated at SAR 376 Billion in 2018. High food import volumes and an arid climate make it essential for the Kingdom to have robust transportation & warehousing system.
Vendors in KSA market provide multiple value-added services to customers, including packaging and kitting, inventory management and others which is difficult to maintain during in-house warehouse operations thereby, accelerating the demand for warehousing on lease and rent on 3PL basis.
Majority of international players seeking industrial premises in KSA require warehousing space. However, the country lacks in terms of good quality warehousing facilities which diverts their preference towards leasing land & construction facilities instead.
Several foreign players such as Agility KSA is investing in logistics infrastructure to offer local & global merchants a one-stop-shop access and link Saudi infrastructure to Agility’s regional warehousing & transportation network to facilitate trade throughout the region. It is emerging as a trans-shipment hub and customers are demanding modern warehouse solutions at cheaper costs. The Saudi Ports Authority also signed a long term MoU with SISCO to expand the Red Sea Gateway Terminal at Jeddah Islamic Port.
Major cities such as Riyadh, Jeddah, Dammam and Mecca are the most populous cities in the country and are emerging as a hot bed for warehousing since most of the industrial regions are also located nearby. With the emergence of Saudi Vision 2030, the country is anticipated to become the manufacturing hub by encouraging companies to contribute towards the 4th Industrial Revolution which will augment the demand for industrial warehousing in the region.
Expansion of industrial city continues to offer opportunities for foreign investors towards developing non-oil manufacturing base, warehousing & logistics segments. For instance, Pfizer opened a SAR 188 Million manufacturing facility in the King Abdullah Economic City (KAEC) during the year 2017.
The report titled “Saudi Arabia Dry Logistics and Warehousing Market Outlook to 2025 – Warehousing Automation and Investment within Transport Infrastructure to Drive Market Revenue)” by Ken Research suggested that the dry logistics market is further expected to grow in the near future as companies are willing to expand in terms of fleet size and warehousing space; potential regional opportunities; shifting to asset light model for warehousing / storage availability. The government can establish a logistics manpower framework, establish a skills council for logistics; pricing at sea ports to attract FDI, revise regulations around customs licensing, promoting bonded logistics & strengthen-ing trade relations with other countries. The market is expected to register a positive six year CAGR of 1.3% in terms of revenue during the forecast period 2019-2025F.
Key Segments Covered in KSA Dry Logistics Market:-
Value Added Services
Others (Al- Khobar, Medina, Tabuk and several other cities)
KSA Dry Freight Forwarding Market:-
Mode of Freight
International and Domestic Freight
International and Domestic Companies
Flow Corridors (International Freight)
NAFTA (North American Free Trade Agreement)
Other Regions (Africa and South America)
KSA Dry Warehousing Market:-
Industrial / Retail
Container Freight / Inland Container Depots
Construction Material / Industrial
Food and Beverage
Others (Agriculture, Chemicals and Rest)
Real Estate Companies
Others (Al-Khobar, Medina, Tabuk and other cities)
KSA Customs Clearance Market:-
Overall Value Added Services
Customs Clearance Revenue by Sea
Customs Clearance Revenue by Air
Transhipment Cargo Volume
Discharged Transhipment Containers
Loaded Transhipment Containers
Key Target Audience:-
International Domestic Freight Forwarders
Time Period Captured in the Report:-
Historical Period: 2014-2019
Forecast Period: 2019–2025
Four winds logistics
Uniworld Freight Services
BAFCO International Logistics and Shipping Co.
Hala Supply Chain
Platinum shipping and logistics
OCSCL (Oriental Commercial & Shipping)
Kanoo terminal Services
Online Retail Companies Covered:-
Abdullah Othaim Market
For More Information on the research report, refer to below link:-
Philippines Logistics Market Outlook to 2024 (Sixth Edition)– By Sea, Land, and Air Freight Forwarding; By Warehousing (Industrial/ Retail, ICD/CFS, Cold Storage, Agriculture), By End Users; By Cold chain market (Cold transportation and Cold storages)
Ankur Gupta, Head Marketing & Communications