Report Overview

Saudi Arabia Freight and Logistics Market - Industry Trends & Forecast Report, 2029

Saudi Arabia freight and logistics market size was estimated to be worth USD 22.5 billion in 2022. During the forecast period between 2023 and 2029, the Saudi Arabia freight and logistics market size is projected to grow at a CAGR of 5.7%, reaching a value of USD 33.2 billion by 2029. Major growth factors for the Saudi Arabia freight and logistics market include the flourishing e-commerce sector in the country and rising government initiatives and investments towards boosting the logistics sector of the Kingdom to proliferate the volume of non-oil exports.

Saudi Arabia Freight and Logistics Market – Overview

Freight and logistics are a cost-effective operation and the delivery of products from one place or country to the other. Businesses generally employ freight to efficiently transport vast amounts of commodities throughout the globe, including via truck, train, ship, and air. Shippers can choose from four main methods of freight transportation. The main modes of transportation are via land (road), train, ocean, and air. The phrase "logistics" covers a wide range of operations, including distribution, warehousing, and many more in addition to the transportation of products.

Saudi Arabia Freight and Logistics Market

Growth Drivers

Rising Investments in Development of Supply Chain Infrastructure

In order to achieve economic diversification under its ‘Vision 2030’, Saudi Arabia is significantly investing in supply chain infrastructure to promote trade in the Kingdom. Saudi Arabia announced in 2021 that it will invest more than 500 billion riyals (about USD 133 billion) in infrastructure, including airports and seaports. As part of its economic diversification strategy, the Kingdom initiated an effort in 2022 to encourage investments in supply chains to and from the Kingdom. Such investments are anticipated to provide lucrative growth opportunities to the Saudi Arabia freight and logistics market, proliferating the overall market growth.

Restraints

Complex Customs Procedures and Regulations

The custom rules and regulations of GCC countries, including Saudi Arabia, is a bit more complex compared to other countries. According to the International Trade Administration, to import products into Saudi Arabia, importers must provide a commercial invoice, a bill of lading, and a certificate of origin to Zakat, the country's tax and customs department. Personal publications, books, and movies may be examined and can be restricted. Additionally, importers must complete the "Fasah" platform clearing processes by submitting the proper paperwork and filling out the customs declaration form at least 48 hours before the consignment arrives at the port of entry. Such regulations may limit the import in the country, and further limit the demand for freight and logistics in Saudi Arabia.

Impact of COVID-19 on Saudi Arabia Freight and Logistics Market

The unprecedented COVID-19 pandemic negatively impacted the growth of the Saudi Arabia freight and logistics market. The imposition of the lockdown followed by immediate restrictions on cross-border trade significantly reduced the freight and logistics demand in the country. The operations of the end users including trade and transportation manufacturing and retail were hampered during the lockdown, which also limited the market growth. However, the market gained significant traction in the e-commerce and healthcare sectors. The freight and logistics sector assisted the healthcare industry in efficiently managing the transportation of vaccines and other medicines essential for the treatment of COVID-19, which significantly proliferated the overall market growth.

Saudi Arabia Freight and Logistics Market

Segmental Coverage

Saudi Arabia Freight and Logistics Market – By Shipping Type

Based on shipping type, the Saudi Arabia freight and logistics market is segregated into roadways, railways, waterways, and airways. Roadways hold the largest share in the Saudi Arabia freight and logistics market owing to their cost-effectiveness and rising demand for door-to-door delivery. However, the airways are witnessing a substantial growth rate owing to the flourishing cross-border trade in the country. The faster and safer transportation of goods strong airport infrastructure along with the adoption of climate change-related sustainable aviation fuel is significantly influencing the growth of the airways in the freight and logistics market.

Saudi Arabia Freight and Logistics Market – By Function

Based on function, the Saudi Arabia freight and logistics market is segmented into inventory management, packaging, warehousing, transportation, distribution, custom clearance, and others. The transportation segment accounts for the highest share of the market. The high demand for imported products that are not domestically produced, such as certain fruits and vegetables, chemicals, and others, along with flourishing exports of crude petroleum and pharmaceuticals of the Kingdom is boosting the demand for transportation in Saudi Arabia.

Saudi Arabia Freight and Logistics Market – By End User

Based on end user, the Saudi Arabia freight and logistics market is segmented into trade & transportation, healthcare, manufacturing & construction, retail, media & entertainment, banking & financial services, IT & telecommunication, and others. The retail segment dominates the Saudi Arabia freight and logistics market owing to the flourishing e-commerce in the country. The rising consumer inclination towards the purchase of a wide range of products, from regular household items such as groceries and personal care products to gadgets and clothing, directly influences the growth of the freight and logistics market in the Kingdom.

Competitive Landscape

Major players operating in the Saudi Arabia freight and logistics market include Almajdouie Logistics, Bahri Logistics, CEVA Logistics, SAL Logistics, DHL Saudi Arabia, Nesma Trading Co. Ltd., Almajdouie Heavylift Transport, Gulf Agency Company, Al-Saad Logistics and Transportation Co., and Agility Logistics.

To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In August 2023 - Mediterranean Shipping Company, a global container shipping company based in Switzerland, announced plans to expand its regional port range to include the Port of NEOM, which will boost cargo movement across Saudi Arabia.

Scope of the Report

By Shipping Type

• Roadways

• Railways

• Waterways

• Airways

By Function

• Inventory Management

• Packaging

• Warehousing

• Transportation

• Distribution

• Custom clearance

• Others

By End Users

• Trade & Transportation

• Healthcare

• Manufacturing & Construction

• Retail

• Media & Entertainment

• Banking & Financial Services

• IT & Telecommunications

• Others

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Saudi Arabia Freight and Logistics Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Rise of e-commerce
         2. Significant Investments in Infrastructure
         3. Country's Strategic Location Between Europe, Asia, and Africa
      2. Restraints
         1. Complex Customs Procedures and Regulations
         2. Dependency on Oil
      3. Opportunities
         1. Growing e-Commerce Sector
         2. Ongoing Initiatives under Vision 2030, such as Developing New Economic Cities and Industrial Zones
      4. Challenges
         1. Logistics Sector's Adaptation to Digital Technologies and Automation
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Saudi Arabia Freight and Logistics Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Shipping Type
         1. Roadways
         2. Railways
         3. Waterways
         4. Airways
      2. By Function
         1. Inventory Management
         2. Packaging
         3. Warehousing
         4. Transportation
         5. Distribution
         6. Custom clearance
         7. Others
      3. By End User
         1. Trade & Transportation
         2. Healthcare
         3. Manufacturing & Construction
         4. Retail
         5. Media & Entertainment
         6. Banking & Financial Services
         7. IT & Telecommunications
         8. Others
5. Competitive Landscape
   1. List of Key Players and Their Range
   2. Saudi Arabia Freight and Logistics Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Development (Merger, Acquisition, Partnership)
6. Impact of Covid-19 on Saudi Arabia Freight and Logistics Market Industry
7. Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook, SWOT Analysis)
   1. Almajdouie Logistics
   2. Bahri Logistics
   3. CEVA Logistics
   4. SAL Logistics
   5. DHL Saudi Arabia
   6. Nesma Trading Co. Ltd.
   7. Almajdouie Heavylift Transport
   8. Gulf Agency Company
   9. Al-Saad Logistics and Transportation Co.
   10. Agility Logistics
   11. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
   4. Breakdown of Primary Research Respondents, By Country
   5. Assumption & Limitation

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       Saudi Arabia Freight and Logistics Segmentation                                

Figure 2       Saudi Arabia Freight and Logistics Market Value Chain Analysis                               

Figure 3       Company Market Share Analysis, 2022                            

Figure 4       Saudi Arabia Freight and Logistics Market Size, By Value (USD Million), 2019–2029                                     

Figure 5       Saudi Arabia Freight and Logistics Market Share, By Shipping Type, By Value, 2019–2029                             

Figure 6       Saudi Arabia Freight and Logistics Market Share, By Function, By Value, 2019–2029                                               

Figure 7       Saudi Arabia Freight and Logistics Market Share, By End User, By Value, 2019–2029                             

List of Tables      

Table 1        Saudi Arabia Freight and Logistics Market Size, By Shipping Type, By Value, 2019–2029

Table 2        Saudi Arabia Freight and Logistics Market Size, By Function, By Value, 2019–2029

Table 3        Saudi Arabia Freight and Logistics Market Size, By End User, By Value, 2019–2029

Table 4        Almajdouie Logistics Company Overview

Table 5        Almajdouie Logistics Financial Overview

Table 6        Bahri Logistics Company Overview

Table 7        Bahri Logistics Financial Overview

Table 8        CEVA Logistics Company Overview

Table 9        CEVA Logistics Financial Overview

Table 10      SAL Logistics Company Overview

Table 11      SAL Logistics Financial Overview

Table 12      DHL Saudi Arabia Company Overview

Table 13      DHL Saudi Arabia Financial Overview

Table 14      Nesma Trading Co. Ltd. Company Overview

Table 15      Nesma Trading Co. Ltd. Financial Overview

Table 16      Almajdouie Heavylift Transport Company Overview

Table 17      Almajdouie Heavylift Transport Financial Overview

Table 18      Gulf Agency Company: Company Overview

Table 19      Gulf Agency Company Financial Overview

Table 20      Al-Saad Logistics and Transportation Co. Company Overview

Table 21      Al-Saad Logistics and Transportation Co. Financial Overview

Table 22      Agility Logistics Company Overview

Table 23      Agility Logistics Financial Overview