Saudi Arabia’s logistics sector entered 2025 bracing for impact. The Transport General Authority rolled out the new Road Transport Law through Royal Decree No. 188/M in February 2025, taking effect in August. At the same time, mandatory telematics for commercial vehicles became active in January. Together, these moves formed the backbone of Saudi TGA regulations 2025, setting new standards for real-time tracking, engine monitoring, and strict compliance. These requirements arrived as the commercial telematics market hit USD 687.6 million in 2024 and is projected to reach USD 2,806 million by 2033. With the delivery sector reporting 79.6 million orders in Q1 2025, the push toward digital monitoring was essential.
Mandatory Telematics Create a New Competitive Order
The 2025 mandate forces fleets to install certified telematics devices logging speed, cargo condition, engine health, and route accuracy. Violations can trigger remote immobilization of vehicles. With road freight transport valued at USD 6.74 billion in 2025 and projected to reach USD 8.82 billion by 2030, the stakes are high.
The message is clear: operators with modern fleets will rise. Those who cannot keep up will fall behind.
Saudi TGA Regulations 2025 and The Regulatory Shock
The strongest shock came from mandatory GPS tracking and axle-load compliance. Small owner-operators struggled with the new costs. Banks also tightened lending to fleets that lacked telematics, pushing many small players toward mergers or exit. Saudi trucking remains fragmented with thousands of tiny operators, but early signs of consolidation are appearing. Almajdouie Group’s recent joint venture with CEVA Logistics reflects a trend where only the most capable will stay competitive.
Read Also: Saudi Arabia’s $100B Smart Logistics Push Is Rewiring the Global Supply Chain
Meanwhile, freight patterns are shifting. Full-truckload still holds 79.10% of the market, but it is growing at only 5.53% through 2030. LTL, driven by e-commerce fragmentation, is rising faster at 6.19%.
The Automation Race in the Saudi TGA Regulations 2025
King Abdullah Economic City (KAEC) is quickly becoming the center of the automation race. Developers there are preparing the next generation of mega distribution hubs.
A major driver is Hyundai Motor Manufacturing Middle East’s USD 500 million plant beginning construction in 2025, targeting 50,000 vehicles per year by Q4 2026. The plant boosts demand for automated logistics and multimodal systems.
KAEC’s 4,400-hectare Industrial District plans to host 2,700 tenants, many focused on light manufacturing and smart logistics. With Vision 2030 giga-projects like NEOM increasing heavy-haul demand by +0.8% CAGR, KAEC builders are positioning themselves to control the next wave of distribution infrastructure.
Cold Chain Crisis: Shortages Hit Pharma and Food
Saudi Arabia is entering a cold chain crunch. Over 40% of the nation’s pharmaceutical products need temperature-controlled handling. Cold chain freight is growing at 6.08% CAGR from 2025 to 2030, faster than non-controlled transport.
The pharma logistics market already reached USD 1.19 billion in 2023 and is expanding at 6.33% annually. SFDA guidelines require continuous logging inside reefer units, making compliance tougher. By Q4 2025, rising medical demand, food growth, and giga-project construction created clear shortages in cold chain capacity.
Read Also: Saudi Pharma Logistics: Powering the Nation’s Healthcare Supply Chain
The New Reality for Saudi TGA Regulations 2025
The sector is transforming under pressure. From consolidation to automation to a stretched cold chain, operators face a landscape where technology determines survival. The Saudi TGA regulations 2025 mark a turning point, and companies that adapt early will lead the market. To navigate these shifts with expert guidance, consider reaching out to Eurogroup Consulting, a global consulting firm experienced in logistics transformation and regulatory strategy.
