Copenhagen-based AP Moller-Maersk’s decision to acquire a 37.5% stake in the South Container Terminal at Jeddah Islamic Port highlights Saudi Arabia’s growing position in global logistics.

AP Moller-Maersk is one of the world’s largest container shipping conglomerates, operating over 700 vessels and employing roughly 100,000 people. The deal marks a major step in expanding international participation in Saudi port operations and reflects the growing importance of the Red Sea and Gulf gateways for global trade routes. 

The partnership aims to enhance operational eciency and support the modernisation of Saudi port infrastructure. By bringing in one of the world’s largest container shipping groups, the agreement is expected to strengthen logistics connectivity and boost the competitiveness of Saudi’s maritime sector. The move also aligns with the kingdom’s eorts to transform its ports into integrated logistics hubs linking Asia, Europe, and Africa. 

As part of that eort, Saudi Arabia has unveiled a series of developments across its logistics, industrial, and aviation sectors, to strengthen its role as a regional trade and transport hub while attracting international investment.

The AP Moller announcement came days after the Saudi Authority for Industrial Cities and Technology Zones (MODON) signed an investment agreement with Medlog, the logistics arm of Mediterranean Shipping Company (MSC), to develop an integrated logistics zone in Jeddah’s Third Industrial City. 

Medlog is one of the world’s major logistics service providers, operating in more than 80 countries and managing infrastructure covering over 8.5 million square metres (sqm). The partnership is seen as a step toward advancing the goals of Saudi Arabia’s National Transport and Logistics Strategy. 

MODON will allocate logistics facilities covering around 100,000 sqm, where Medlog will develop an integrated logistics zone that includes container yards and warehousing facilities. The project is expected to involve an initial investment of about SAR 137 million. 

MODON’s early estimates indicate the project could achieve an annual handling capacity of about 60,000 twenty-foot equivalent units (TEUs) by 2038. It has the potential to contribute roughly SAR 44 million to the GDP and create 200 direct jobs.

NEW LOGISTICS INVESTMENTS

Separately, MODON signed six industrial, investment, and logistics agreements with total investments exceeding SAR 1 billion and spanning 671,000 sqm at the Sudair Industrial and Business City in Riyadh province. The deals aim to support sustainable industrial growth and enhance local content in line with the objectives of the National Industrial Strategy. 

Among the new agreements, MODON signed an industrial contract with Jindal Saw and Buhur Altavision, investing over SAR 562 million across 540,000 sqm to localise pipe manufacturing, which will bolster downstream industries and national supply chain readiness.

MODON also signed a pharmaceutical contract with STADA Saudi Arabia Ltd, investing SAR 366 million across 23,000 sqm to localise human-use pharmaceutical production, in line with the kingdom’s pharmaceutical security goals. 

Supporting specialised industries, an industrial contract was signed with Mubadara Engineering Company, investing SAR 50 million across more than 100,000 sqm for the local production of vessels for liquefied and compressed gases. In addition, the Safety Science Medical Company signed a SAR 40 million agreement over 8,400 sqm to localise pharmaceutical manufacturing, enhancing local industry integration.

INTERNATIONAL PARTNERSHIPS

The kingdom is also pursuing closer regional integration in logistics. A new Saudi-Qatari partnership aims to establish logistics corridors designed to facilitate trade and improve the movement of goods across the Gulf region. Ocials said the initiative is intended to deepen economic cooperation and streamline supply chains between the two countries. 

The proposed corridors would support the development of integrated transport routes and distribution networks, helping to accelerate cross-border trade and strengthen the Gulf’s position as a key link between Asian manufacturing centres and European markets. The initiative reflects broader eorts among Gulf states to coordinate logistics infrastructure and reduce trade bottlenecks. 

Aviation logistics sector is another area seeing increased activity. Saudi Logistics Services (SAL) announced an agreement valued at SAR 123 million to acquire a full stake in Aviapartner Liège. The transaction gives SAL full ownership of the company’s operations in Liège, Belgium.

The acquisition marks an expansion of Saudi logistics companies into international aviation services. By taking control of a European ground-handling operator, SAL aims to strengthen its global cargo handling network and enhance its presence in international air freight markets. Liège Airport has developed into a major cargo hub in Europe, particularly for express freight and e-commerce shipments.