15 Oct 2019
Saudi Arabia opens kingdom’s largest logistics area
Saudi Arabia launched a new logistics area in Jeddah on Sunday. The new logistics zone is open to private investors in the Red Sea port city of Jeddah, for a wider industrial initiative and to diversify the economy away from oil and create jobs for Saudis. Dr. Nabeel Bin Mohamed Al-Amoudi, Minister of Transport announced the offering of the Al Khomra Logistics Zone Jeddah for investment to the private sector.
The zone covers a land area of more than 2 million sq m in Jeddah. Country hopes that this will transform Saudi Arabia into a global logistics hub and create 10,000 direct jobs as it is the biggest logistics zone. Al Khomra logistics zone is expected provide 10 business areas from four vital sectors like electronic, vehicles, electrical equipment and food and beverages.
National Industrial Development and Logistics Program (NIDLP) aims to create 1.6 million jobs and attract investments worth 1.6 trillion riyals ($427 billion) over the next decade. Of that, 135 billion riyals are earmarked for investment in the logistics sector. The Al Khomra Logistics Zone is noteworthy because of its proximity to international trade routes and road connections to Jeddah Islamic Port and King Abdulaziz International Airport. Al Khomra’s location along the Red Sea coast, an important passageway for more than 13% of global maritime trade so it will make it a vital hub on the Silk Road maritime trade route launched within the Belt and Road Initiative (BRI).
These are attractive factors for investors who are interested in capitalizing on the lands owned by Mawani (The Saudi Ports Authority) and building partnerships with the authority to develop fully-fledged logistics zones. It also includes the newly announced Al Khomra Logistics Zone.