Saudi Arabia raises its Red Sea logistics investments to $3.73 billion - Sarmad
Saudi Arabia has increased the number of its logistics centers in ports to 34, with investments exceeding $3.73 billion, as part of a plan to transform Red Sea ports into integrated hubs for trade and supply chains.
The Saudi Ports Authority (“Mawani”) signed seven new contracts with national and international companies to establish and expand logistics centers at the Port of Jeddah Islamic and the Khumra area, with investments totaling approximately 1 billion riyals ($266.6 million).
With these contracts, the number of logistics centers in Saudi ports has risen to 34, including 17 at the Port of Jeddah Islamic, with total investments exceeding 14 billion riyals since the program’s launch about five years ago.
These projects align with a strategy aimed at developing the role of Saudi ports by shifting focus from handling operations to creating an integrated system encompassing storage, distribution, re-export, and logistics services linked to global trade.
Saudi Minister of Transport and Logistics Services Saleh Al-Jasser stated that the development of the Port of Jeddah Islamic and the Khumra area supports the objectives of the National Transport and Logistics Strategy and Saudi Vision 2030, by enhancing supply chain efficiency and promoting private sector participation.
The Port of Jeddah Islamic is the focal point of these investments, accounting for nearly half of the logistics centers in Saudi ports, while the Khumra area serves as a logistical extension of the port, thanks to its connectivity via road networks to King Abdulaziz International Airport and various regions across the Kingdom.
The projects also include the expansion of Maersk’s logistics center at the port through the creation of new container yards and facilities covering an area of approximately 60,000 square meters, with investments amounting to 40 million riyals.
In parallel, the southern container terminal at the Port of Jeddah Islamic underwent an expansion valued at 3 billion riyals, executed by DP World, increasing its annual capacity from 1.8 million to 4 million standard containers.
These investments reflect Saudi Arabia’s shift toward strengthening its position as a regional and global hub for logistics services, by linking ports with industrial zones, storage centers, and international trade networks, leveraging its strategic location on the Red Sea.
