Driving Forces Shaping Saudi Arabia's Logistics Sector in 2025 and Beyond

Saudi Arabia’s logistics sector has positioned itself as a benchmark for connectivity, trade, and innovation. In 2024, the Saudi logistics market was valued at $136.3 billion, and it is expected to reach nearly $198.9 billion by 2030. 

The sector’s growth is being propelled by the Kingdom’s massive infrastructure investments, regulatory reforms, and global events such as Expo 2030 and the 2034 FIFA World Cup. For investors, logistics companies, and supply chain operators, the timing could not be better. 

With a $1.1 trillion development pipeline and major incentives on offer, business setup in Saudi Arabia’s logistics sector has become an attractive opportunity. Below, we outline the driving forces shaping the industry’s trajectory in 2025 and beyond. 

- Expanding Multimodal Logistics for Seamless Connectivity 

At the heart of Saudi Arabia’s logistics strategy is the creation of a multimodal system that integrates roads, railways, seaports, and airports. The government has allocated $267 billion in infrastructure spending over the next decade to strengthen this connectivity. 

• Roads: The Kingdom is investing SAR 3 billion ($799 million) into Riyadh’s road network, expanding and maintaining over 15,000 km of routes. These investments will make overland transport faster and more efficient. 

• Railways: Plans are underway to expand the rail network by 50% by 2030, linking industrial zones, cities, and ports more effectively. 

• Seaports: In 2024, Saudi ports handled 320.78 million tons of cargo, a 14.45% increase from the previous year. Ongoing upgrades will allow them to accommodate future trade growth. 

• Airports: With ambitious targets to triple passenger numbers to 330 million and raise freight capacity to 4.5 million tons annually, air logistics is becoming a critical pillar of growth. 

- Logistics Hubs and Zones Driving Growth 

Another driving force is the expansion of logistics hubs and zones, designed to support cargo management, warehousing, and distribution across the Kingdom. Saudi Arabia aims to increase the number of logistics zones from 22 to 59 by 2030, backed by more than SAR 10 billion ($2.66 billion) in investments. 

The rise of e-commerce has also spurred demand for warehousing facilities, which have grown by 267% since 2021. By 2025, the number of e-export logistics centers increased from just two in 2019 to 23 operational facilities. 

These developments are not only supporting domestic trade but also boosting Saudi’s role in regional re-exports and cross-border supply chains. 

- Digitization of Ports and Maritime Logistics 

Seaports remain the backbone of Saudi trade, handling the majority of imports and exports. Jeddah Islamic Port alone processes nearly 60% of imports by sea. To stay competitive, Saudi Arabia is embracing digitization and smart technologies at its ports. 

The Saudi Ports Authority (Mawani) launched the “Smart Ports” initiative to streamline port operations through automation and digital platforms. This includes investments in technologies like remote-controlled Ship-to-Shore cranes, Autonomous Guided Vehicles (AGVs), and AI-powered logistics systems. 

In May 2025, NEOM Port introduced Saudi Arabia’s first automated cranes, enhancing container handling efficiency. Collaborations with global players such as Huawei and STC are introducing 5G-enabled solutions in cybersecurity, cloud computing, and smart port infrastructure. 

For investors and logistics companies, the digitization of Saudi ports opens up new opportunities to provide technology solutions, management services, and supply chain innovations. 

- Sustainability as a Competitive Advantage 

As Saudi Arabia accelerates its growth, sustainability is becoming a defining factor in logistics development. The Kingdom has committed to achieving net-zero emissions by 2060 under the Saudi Green Initiative (SGI). Efforts are being made to: 

• Consolidate shipments to reduce fuel consumption. 

• Optimize multimodal transport routes to lower emissions. 

• Develop circular logistics systems and sustainable last-mile delivery models. 

This focus on green logistics creates opportunities for businesses specializing in renewable energy integration, electric fleets, and environmentally friendly supply chain management. 

- The Role of Global Events in Driving Logistics Demand 

Saudi Arabia’s hosting of Expo 2030 and the 2034 FIFA World Cup is accelerating demand for logistics services. These events require large-scale infrastructure, international supply chains, and efficient distribution systems. Beyond the short-term boost, they will leave lasting infrastructure legacies that further strengthen Saudi Arabia’s logistics capacity. 

For international businesses, setting up operations now ensures they can be part of this growth wave and benefit from government-backed incentives in logistics and infrastructure. 

- Why Invest in Saudi Logistics Now? 

Several factors make the Kingdom’s logistics sector one of the most attractive for international investors. 

1. Government Reforms and Incentives: Saudi Arabia offers tax breaks, free zones, and streamlined licensing to attract private sector participation. 

2. Rising Market Demand: With a population of 36 million and increasing exports, demand for efficient logistics solutions continues to rise. 

3. Strategic Location: Positioned at the crossroads of Asia, Europe, and Africa, Saudi Arabia offers unmatched access to global markets. 

4. Private Sector Opportunities: Logistics is being opened up for private investment, with room for global expertise in supply chain technology, warehousing, and last-mile services. 

The Saudi logistics sector is becoming a growth engine. Multimodal infrastructure, logistics zones, port digitization, sustainable practices, and the hosting of major international events are converging to create a fertile environment for global investors. 

For companies considering business setup in Saudi Arabia, logistics represents one of the most promising entry points. By aligning with the Kingdom’s vision for seamless connectivity, digital transformation, and sustainability, investors can secure long-term opportunities in one of the world’s fastest-growing economies.