LOGISTICS 

DAMMAM PORT TO HOST NEW SAR200M LOGISTICS PARKh

A new logistics hub is set to rise at the King Abdulaziz Port in Dammam. The Saudi Ports Authority (Mawani) and Sultan Logistics signed an agreement to develop the facility with an investment of up to SAR 200 million. 

The deal involves a new 197,000-square-metre (sqm) logistics park designed to boost the port's competitiveness, enhance operational efficiency, and elevate the quality of logistics services, The project aligns with Mawani's strategic initiatives under the National Transport and Logistics Strategy, which aims to establish logistics parks both within and outside Saudi Arabia's ports. 

Featuring 35,000 sqm of warehousing, administrative offices, and a dedicated yard for storing and maintaining both dry and refrigerated containers, the logistics park will boost investments and create jobs, taking advantage of the port’s strategic location. A re-export zone will also be included, further enhancing the port’s logistics capabilities and supporting commercial activity with high operational standards.

By offering specialised logistics services and fostering greater private sector involvement, the new logistics park is expected to significantly strengthen King Abdulaziz Port's competitive edge and contribute to the Kingdom's economic diversification efforts.

The project covers an area of 382,000 sqm and features a 7,000-sqm warehouse for spare parts storage and a logistics area capable of accommodating more than 13,000 vehicles and trucks. The initiative will provide specialised logistics services, increase private sector contributions to economic development, and promote economic diversification.

INVESTMENT WAVE

The Saudi Authority for Industrial Cities and Technology Zones (Modon) attracted new foreign and domestic investment worth SAR 24 billion in 2024, a 38% increase over the previous year. The latest tally brings the total investment across Modon’s 39 industrial cities to SAR 440 billion. The authority also reported a 9% increase in operational industrial, logistics, investment, and data centre facilities, reaching a total of 8,616.

The expansion lays the grounds for a strong domestic manufacturing industry, boosting local production and national exports. The efforts also helped drive a 10% rise in employment within these zones, totalling 593,000 jobs.

In addition, Modon has expanded developed land in its industrial cities by 7% to 219.5 million sqm, with 80 projects completed – achieving a 100% delivery rate compared to 2023.

The authority's efforts ensured that 100% of its commitments set out in Saudi Arabia’s Vision 2030 economic plan had been achieved, which was confirmed by the National Center for Performance Measurement of Public Agencies (Adaa).

The completion demonstrates the authority’s focus on sustainable  development and economic growth, with a total of 32 strategic initiatives worth SAR 16.3 billion implemented. 

Indeed, the authority exceeded annual growth targets, securing more than 870 new industrial, logistics, and investment contracts, thanks to its bespoke product projects, land allocation, effective investor commu-nication, and tailored investor solutions.

MTRANSPORT INNOVATION

In April, the Ministry of Transport and Logistic Services, in partnership with King Abdullah University of Science and Technology (KAUST) launched the "Future Mobility Sandbox" initiative, aimed at transforming the kingdom's transport and logistics sector.

Located on a 1.56-square-kilometer area, the sandbox will provide a secure, real-world environment to test emerging technologies across land, air, and sea transport. The sandbox is designed to support Saudi Arabia’s strategic goals by enabling innovation in autonomous, smart, and sustainable mobility, while attracting global investment and talent. 

Located on a 1.56-square-kilometer area, the sandbox will provide a secure, real-world environment to test emerging technologies across land, air, and sea transport. The sandbox is designed to support Saudi Arabia’s strategic goals by enabling innovation in autonomous, smart, and sustainable mobility, while attracting global investment and talent. 

It corresponds with several transportation initiatives taken by the kingdom and the private sector, including investments in railways, development of electric vehicle industry and related supply chain, hydrogen fuel technologies, and autonomous vehicles, among others. 

“Aligned with the National Transport and Logistics Strategy, the initiative is expected to stimulate economic growth, create high-value jobs, improve traffic safety, and reduce tansport-related accidents," accord- ing to the ministry.

“Technologies to be tested include autonomous vehicles, electric vertical take-off and landing (eVTOL) aircraft, drones for logistics, maritime innovations, and advanced propulsion systems. The platform will also support testing of cutting-edge sensors, communication networks, and safety systems,” the ministry confirmed.