The Saudi Logistics Hub initiative to make import and export logistics more convenient and business-friendly
Saudi Arabia has been ranked as the world’s top ease of doing business improver by the World Bank Group’s Doing Business 2020 report. The report indicates Saudi Arabia to have jumped 72 global positions in ‘Trading Across Borders’, an indicator which compares the time and cost of exporting and importing goods.
These improvements follow a raft of legislative reforms implemented by Saudi Logistics Hub —a government initiative established to drive growth in Saudi Arabia’s logistics sector.
Reforms include the reduction of customs clearance from seven to ten days to 24 hours, the reduction of the manual inspection rate at Customs from 89 percent to 48 percent, and the reduction of the number of documents required to import from 12 to 2 and to export from 8 to 2. These critical reforms facilitate Saudi Arabia’s drive to be positioned as one of the world’s most dynamic logistics hubs.
Driving efficiency and competitiveness
H.E. Eng. Saleh Bin Nasser Al-Jasser, Minister of Transport and Chairman of the Saudi Logistics Hub, affirmed that the recognition of Saudi Arabia’s progress by the World Bank confirmed the Kingdom’s sustained efforts to drive efficiency and competitiveness in the country’s logistics sector.
“The Saudi Logistics Hub is now inviting foreign investors and business partners to join our ambitious journey to consolidate Saudi Arabia’s status as a leading logistics hub,” he asserted.
Recently, the Saudi Logistics Hub announced a US$ 35bn capital expenditure plan to transform Saudi Arabia into a global logistics center. Following the move, the top brass of the Saudi Logistics Hub set out on a two-month global roadshow, with a final stop in Germany in January 2020, to further promote investment opportunities in Saudi Arabia’s logistics industry.
The global itinerary included the UAE, Jordan, Egypt, China, Japan, Singapore, India, and Germany through which the government entity was able to successfully create a strong awareness about Saudi Arabia’s logistics sector.
Kingdom’s investment in the logistics sector
Over the last 10 years, the country has invested more than US$ 100bn into transport and logistics infrastructure, creating a comprehensive nationwide network. These impressive reforms are encouraging foreign investors to take part.
The global roadshows witnessed successful meetings with Pantos Logistics, Samsung SDS in Korea, and PSA International in Singapore, as examples, which demonstrated Saudi Logistics Hub’s keenness to drive foreign partnerships across the Kingdom.
With 12 percent of global maritime trade passing through the busy shipping lanes of the Red Sea, Saudi Arabia aims to leverage its strategic location at the crossroads of three continents to increase export and re-export capacity, driving private sector participation in the industry.
Transformation across the sector has already resulted in a 47 percent increase in the number of new foreign transport and logistics companies establishing operations in Saudi Arabia in 2019.
Saudi Arabia now boasts one of the fastest-growing logistics sectors globally, valued at US$ 19bn and ranked third most attractive within emerging markets. As the world’s 18th largest economy and next host of the G20 in 2020, the country aims to increase the sector’s competitiveness, while also building international synergies to enhance domestic and cross-border trade infrastructure.
A Government initiative
The Saudi Logistics Hub is a government initiative formed by leading transport and logistics entities in Saudi Arabia with a mandate to support growth in the sector and position the country as a strategic gateway at the crossroads of three continents in line with Kingdom’s Vision 2030’s bold ambitions.
The Saudi Logistics Hub is transforming Saudi Arabia into a globally competitive and efficient export, re-export, and domestic connectivity platform through enhancing the sector’s infrastructure, processes, procedures, and regulatory frameworks.
This will enable logistics players to Access one of the fastest-growing logistics markets in the world, benefit from recent reforms that reduce the time and cost of logistics operations and capitalize on specific investment opportunities.
