Express Delivery Market Saudi Arabia Trends Freight forwarding services Saudi Arabia | Page 2

Logistics service provider, WPL, Wared logistics, and Zahid group. Aramex, DHL and other
leading competitors are planning to expand in the coming years to gain stronghold in the
logistics and warehousing market.
Freight forwarding segment has dominated the Logistics and warehousing industry in Saudi
Arabia over the past few years. The increase in demand for transportation of goods from
one place to another has accelerated the size of the freight forwarding services in the
country. Growing expatriate population, increase in the fuel prices, rising industrialization
has triggered the market size. Moreover, the increase in the export and import value has
positively impacted the freight forwarding industry in the country.
The huge investment by the government on the manufacturing and construction industry in
the country has triggered the size of engineering and equipment industry in the country.
The transportation and storage of the products from this industry has led to the increase in
demand for logistic and warehousing services in the country. The engineering & equipment
segment has contributed 25% share to the revenues in 2015. There are several metal
producing companies in the country, which have their manufacturing plant in the kingdom.
According to the study “Saudi Arabia Logistics & Warehousing Market Outlook to 2020 -
Expanding Industrial and Retail Activities Supported by Infrastructure Spending to Support
Growth”, the country’s economic policies focus on achieving higher economic diversification
and growth, while safeguarding macroeconomic and financial stability. The logistics industry
was transformed with the launched a cloud-based B2B platform, Trukkin Middle East, that
connects customers with shippers and truckers in the country to create new business
opportunities and with the delivery of streamlined logistics solutions. Trukkin opens doors
for new suppliers, services on demand and lower transport overheads supported by
transparency and business development. The Trukkin ecosystem consists of multi-lingual
customer app on iOS and Android and a portal. All the transportation fleet owners along
with the drivers use the portal and application.
Investments in infrastructure projects enhance the logistics services in the country. Several
initiatives are taken to improve the logistics services such as Multi-Modal Logistics Hubs in
Yanbu and in Jubail Industrial Cities, removing trade restrictions on air and truck
transportation, and the localization and transfer of transport and logistics technology.
Saudi Arabia depends on imports and has become the logistics hub of the Gulf region. In
Saudi Arabia, the logistics and warehousing market is growing rapidly with the national
transformation plans and development of a borderless GCC customs union. Saudi Arabia will
be able to outshine in the United Arab Emirates (UAE) focus as the GCC’s main trading hub
with the soaring trade volumes and with various project on hand that improve the
transportation infrastructure. It was recorded that Saudi Arabia’s imported 300 million tons
of cargo in the year 2005, however it was expected that the volume may treble to 900
million tons by the year 2020.
Saudi Arabia’s economy is heavily dependent upon foreign immigrant as they constitute
more than 30% of the total population. The country has been facing a critical shortage of
skilled labor since past few years due to increasing competition from foreign labor.