Saudi Arabia launches programme to develop industry and logistics services

Saudi Arabia launches programme to develop industry and logistics services

In a big push to develop Saudi Arabia’s economy, Saudi Minister of Energy, Industry and Mineral Resources Khalid al-Falih has unveiled National Industrial Development and Logistics Programme (NIDLP) to develop the industry and logistics services to achieve the Kingdom’s Vision 2030.

According to the Saudi Press Agency, Khalid al-Falih said the programme is aimed to achieve growth and integration in the Kingdom's economy in the sectors such as manufacturing, mining, energy and logistics.

The minister, at the launch, stressed that the basic rule for the success of any industrial and export country is the logistics sector, including roads, railways, ports, airports and free economic zones. He also added that innovation and scientific research will be key elements of the Kingdom's economy and that each sector of the economy will be independent and separate from others. The minister said that the programme of developing the national industry and logistics boasts more than 330 initiatives and will achieve more than a third of the objectives of Vision 2030. Ready projects will be introduced for negotiations through deals worth more than 70 billion riyals, revealing that the programme aspires to attract 1.6 trillion riyals of investments, according to the agency.

Under a new industry and logistics programme, the country is looking for private sector help to develop its manufacturing, mining, energy and logistics sectors, according to the Saudi Press Agency. The country's energy minister, Khalid Al Falih is expected to announce projects worth $18.6 billion (70 billion riyals),

In a recent report, the logistics industry in Saudi Arabia is evolving rapidly to meet the dynamic demands of customers, changing industrial landscape, and expansion of trade. Economic diversification initiatives, tax policy reforms, and FDI policies are encouraging open economy and private investment. Technology advancements and the nation's vision on economic diversification are creating opportunities across sectors such as retail, eCommerce, healthcare, and other non - oil based industries.
The freight transportation sector is undergoing significant transformation driven by investments in port modernization, rail developments, and airport expansions, while the growth in eCommerce is driving the demand for built - to - suit and modern warehousing solutions. The new rail developments are expected to decrease the nation's dependency on road as the primary mode of transport and also reduce the time taken to transport goods from coast to coast. Linking of rail infrastructure with ports would also improve multimodal connectivity.

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