Saudi Arabia Transportation and Logistics Network Outlook

Saudi Arabia’s transportation industry has continued to flourish in recent years. In line with the Kingdom’s long-term strategic Vision 2030 program, Saudi Arabia launched the National Transport and Logistics Strategy, which aims to develop and expand transportation in the sea-to-air and rail-to-road connectivity. Saudi Arabia’s freight and logistics market is valued at $20.47 billion and is expected to grow at a compound annual growth rate (CAGR) of 6.95% to reach $32.12 billion by 2026. This will require expanding, digitizing and interconnecting the entire transportation ecosystem (increasing air cargo capacity, integrated transport infrastructure, and marine & railway ports). 

Currently, the Kingdom’s transportation & logistics network includes:
•    Roads: 73,000km national roads (4,900km highways, 14,189km dual roads, and 54,180km single roads).
•    Airports: 29 airports (10 international, 3 regional, and 16 domestic) with an annual capacity of 100 million passengers.
•    Railway: 4,500km of rail with an annual capacity of 11 million tons. 
•    Marine ports: 10 ports for non-oil trade (9 public and 1 private) that handle 280 million tons of cargo annually.

From 2023 onward, there will be strong demand across all segments of the industry, as air, sea and land transport move to adopt smart/intermobility technologies to meet the Kingdom’s Vision 2030 goals. Technologies in demand include but are not limited to: automated vehicles, traffic management systems, freight and transit tracking, big data management, communication and connectivity technologies, electric mobility, mobility on demand, mobility as a service (MaaS), payment technologies, and smart infrastructure.

  
U.S. companies with innovative intermobility technologies may contact saad.ahmed@trade.gov for any questions or for further information.