Saudi Arabia has rapidly positioned itself as a powerhouse in the global logistics industry, backed by ambitious policy reforms, technological advancements, and significant infrastructure investments. With the Saudi Arabia logistics market valued at USD 136.3 billion in 2024, its projected expansion to USD 198.9 billion by 2030 showcases the Kingdom’s aggressive push toward logistics dominance.
Saudi Arabia Logistics Market Growth (Source: Grandview)
USD 136.3 Billion Industry Poised for 6.5% Annual Growth
Saudi Arabia’s logistics market is set to grow at a CAGR of 6.5% from 2025 to 2030, driven by large-scale investments and streamlined supply chain operations. The logistics ecosystem thrives on well-established transportation networks and modern warehousing systems, positioning the Kingdom as a central hub for trade.
Among its core segments:
- Transportation services emerged as the top revenue generator in 2024.
- Warehousing and distribution recorded the fastest growth rate, solidifying Saudi Arabia’s role in regional supply chain efficiency.
Saudi Arabia Accounts for 3.5% of Global Logistics Revenue
Despite its regional dominance, Saudi Arabia's logistics sector made up only 3.5% of global logistics revenue in 2024—a gap the Kingdom is actively working to close. Global competition remains fierce, with the United States projected to lead the industry by 2030, followed closely by emerging logistics powerhouses in the Middle East.
Within the region, the UAE is expected to remain the top performer by revenue in 2030, while South Africa will lead growth rates, projected to reach USD 137.4 billion by the decade’s end.
Infrastructure and Tech Are Fueling Saudi Arabia’s Competitive Edge
Saudi Arabia’s logistics transformation is largely anchored on infrastructure megaprojects and cutting-edge technology. Key developments include:
- Port expansions at King Abdullah Port and Jeddah Islamic Port, improving global trade connectivity.
- Railway expansions, targeting 8,000 kilometers in network length to streamline domestic freight operations.
- Blockchain and AI adoption to enhance customs processing, reduce transit delays, and optimize supply chain forecasting.
These strategic investments are critical in enabling Saudi Arabia to achieve its Vision 2030 ambitions while attracting multinational logistics firms to set up operations in the Kingdom.
Public-Private Partnerships Drive USD 50 Billion in Investments
Saudi Arabia's logistics sector benefits from an active pipeline of over 200 PPP projects, with an additional 300 under review. These collaborations—valued at over USD 50 billion—enable private sector participation in critical infrastructure development, reducing reliance on state funding while fostering innovation.
Sustainability & Green Logistics: A Competitive Advantage
With global trade increasingly prioritizing sustainability, Saudi Arabia has woven environmental considerations into its logistics strategy. Under the Saudi Green Initiative, the Kingdom is investing in:
- Solar-powered warehouses
- Electric vehicle fleets
- Carbon footprint reduction measures in transportation
By integrating sustainability into Saudi Arabia logistics market, Saudi Arabia is setting a precedent for environmentally responsible trade while working toward its net-zero emissions target by 2060.
The Road Ahead for Saudi Arabia’s Logistics Market
Saudi Arabia has built a thriving logistics ecosystem through visionary policymaking, infrastructure expansion, and technology-driven efficiencies. With Saudi Arabia logistics market projected to reach USD 198.9 billion by 2030, the Kingdom offers a model for other Middle Eastern economies looking to enhance their logistics competitiveness.
Also Read: Inside Saudi Arabia’s Supply Chain Evolution: Key Trends & Industry Growth
