Saudi Arabia Logistics Market Outlook to 2022

Overview

Executive Summary

Saudi Arabia is on the fast track mode in diversifying its economy away from oil. It planned an ambitious path to become the go-to-logistics hub, efficiently linking trade across three continents Asia, Europe, and Africa.

Reforms are on the roll to restructure governance, regulations, liberalize market and to boost private-sector participation. By 2030, it expects to be the top logistics market which would enhance the capability and aid to finance the infrastructure.

Saudi Arabia Logistics Market: An Outlook to 2022” emphases on the strong scope and opportunity for the market in Saudi Arabia with the launch of Vision 2030.

Designing a World-Class Logistics Infrastructure
A new integrated infrastructure master plan has been structured to improve the quality, safety, and efficiency of its transport network. Road transport is a foremost form of freight and passenger transportation in Saudi Arabia with a road network of 211,096 km as of 2017.

Saudi has made huge investments and has budgeted SAR 21.0 billion in 2018 for the development of roads, ports, railways, airports, housing, communications & information technology, postal services, and industrial cities. The other network such as rail, maritime, and air are witnessing rapid growth owing to the high competition and the development of logistics services.

Logistics a Strategic Market
The Logistics market is one of the most vibrant sectors that witnessed a robust growth of 6-7% annually in past few years. Saudi Arabia has a strong strategic advantage over neighboring countries due to its geographical location. The construction of the King Abdullah Port has further increased trade scenario due to its advantage of proximity to China, India, and Europe facilitating mutually beneficial transport links.

Freight Forwarding Market plays Dominant Role
Freight Forwarding Segment has dominated the Logistics Market in Saudi Arabia over the past few years, followed by Warehousing, Value Added Services and Cold Chain. The government initiatives have propelled the Saudi Arabia logistics market.

The escalating demand for transportation of goods has accelerated the volume of freight forwarding services in the country. The rising wave of industrialization triggered the demand for Warehousing and subsequent segments.

Jeddah City the Game Changer
The Jeddah City being the game changer, as it holds the prime port through which a major chunk of cargo tonnage is loaded and offloaded for imports and exports. It contributes the major share of 36.0% to the revenue of the logistic market as its prime city through which trade happens.
Additionally, the ports location on the red sea coast makes it the major contributor to the revenue of the logistic industry of the country. The market is followed by Dammam, Riyadh and Others.

Oil & Gas Industry–Rules the Logistics Market
Saudi Arabia is an Oil based economy, however recent changes has led to its shift of focus to other sectors. Despite recent transformation, Oil & Gas industry still is by far the largest contributor to the logistics market as it requires huge logistic support for its movement.
The Manufacturing, Food & Beverages, Automotive, Service Sector and Others industries follow the market lead.
The wave of Digitalization, increasing air connectivity and other transforming factors alter the current market as well as the future market.

A deep - dive into Future
Saudi Arabia Logistics Market is expected to witness a CAGR of 7.6% during the period 2017-2022. Intensifying trade with major trading partners, mounting demand for warehousing & cold storage, growing e-commerce & retail industry, entry of foreign players, and rising government initiatives will drive the market in coming future.
However, continuous innovation on part of major companies like the development of advanced technologies is expected to play a pivotal role in strengthening competition within the market.

Scope of the Study
The synopsis presented has been derived from the report titled “Saudi Arabia Logistics Market: An Outlook to 2022” published by Makreo Research and Consulting Firm. The report deep dives into market assessment on various parameters, discussing major segments, and accessing the impact of economic, political, technological & demographic factors on the market. The study also discusses market dynamics which offer an understanding of industry trends, driving forces and major challenges hampering the growth. The report gives an understanding of future opportunities prevailing in the market which may help market players to leverage untapped business potential.

Key Players Dominating the Market:

Freight Forwarding Market
DB Schenker; Aramex; Almajdouie Group; DHL; Panalpina; UPS

Warehousing Market
Warehousing Projects & Logistics Company; Arabian Hala Co. Limited; Four Winds Saudi Arabia Limited; Logistics Service Providers; Al-jabri Group

Cold Chain Market
Tameem Logistics; Aramex; Gulf Agency Group

Logistics Market
Agility;Bahri–National Shipping Company; Saudi Cargo; Saudi Railways Company; Mubarrad–Saudi Transport &Investment Co; Almajdouie Transport

3PL Market
Agility; Wared Logistics; Binzagr Group; Al-Futtaim Logistics; Kuehne+Nagel

The report helps readers to gain insights on following areas:

• What would be the present and future expected performance of the Saudi Arabia Logistics Market?
• What are the key segments (Freight Forwarding Services; Warehousing Services; Value Added Services; Cold Chain Services) enabling the market growth?
• How the logistics market supports the other key sectors such as Oil & Gas, Industrial, Manufacturing and others?
• How do the market trends alter the future performance of the Saudi Arabia Logistics Services Market?
• What are the challenges for the logistics industry?
• How the key dynamics factors drive the logistic market in Saudi Arabia?
• How major service providers of the Logistics Market are positioned and how do they impacts the market?
• What role does government play in framing policies and shaping up the logistics market?
• How does technology play an efficient role in driving the industry and benefits the future?