A logistics platform to raise market volume to 28 billion riyals by 2020 GACA’s President introduces the first integrated logistics area at KKIA
Riyadh- July 28, 2019
An introductory forum on an integrated logistics platform at King Khalid International Airport (KKIA) was held today at Fairmont Hotel in the capital city of Riyadh. The meeting was headed by GACA President, Mr. Abdulhadi Al-Mansouri, and attended by a number of companies and investors in the logistics sector from inside and outside the Kingdom. The forum was held to highlight the logistics sector’s projects and investments in the Kingdom. It was an opportunity to facilitate partnership with the government sector, create an attractive and sophisticated work environment for investors, and enable them. This in an effort for them to take full advantage of the logistics network and to make the movement of goods available on a wider scale.
Mr. Al-Mansouri affirmed at the start of the forum the efforts of the Executive Committee for the Logistics Platform, represented by its Chairman, Dr. Nabeel Al Amoudi in overcoming all obstacles faced by investors and those working in the logistics sector to achieve all the goals of the Saudi Vision 2030. A vision that is based three main points; the establishment of a vibrant society, a prosperous economy and aspiring country. The effort put emphasis on the keenness of the Kingdom’s wise leadership in providing unlimited support in all fields, where this country become a global logistics center linking three continents and bridging between those societies.
His Excellency went on to say, that the Kingdom has recently developed the logistics sector through capital investment of more than 400 billion Saudi Riyals. This allowed to an increased capacity in land, air, and maritime cargo, in addition to the development of and simplification of the import/export operations and the removal of all restrictions related to logistics operations.
He added that the logistics market volume in the Kingdom of Saudi Arabia have reached 18 billion US Dollars, which amounted to 55% of the total logistics market for all the GCC countries. He pointed out that the volume of this sector expected to reach 25 billion US Dollars by the year 2020, making the Kingdom’s logistics sector one of the fastest growing logistics sector in the world.
HE Al Mansouri went on to say that, GACA is planning to launch a number of promising projects to stimulate the sector, through the logistics platform. One of these projects include the establishment of a group of logistics area in the near future. The first of these projects, which is being reviewed today, is the Integrated Logistics Bonded Zone (ILBZ) at King Khalid International Airport in Riyadh. It is considered the first economic zone in the Kingdom with its own set of Regulations, Registration and incentives design to attract the most prominent investors companies to the Kingdom.
He concluded his speech by stating, “At this current stage, we are forming the cornerstone in the process of stimulating the logistics sector in the Kingdom of Saudi Arabia and the issuance of the Regulations for its establishment. Stressing the efforts of the Logistics Committee supported by all government sectors and in all aspects to make these projects a global exemplary model".
It is worth mentioning that the Kingdom of Saudi Arabia as logistics Hub is one of the initiatives of National Industrial Development and Logistics Program (NIDLP) launched earlier this year, and it is one of the largest programs in the Saudi Vision 2030, that aims to transform the Kingdom into a leading industrial power and an international logistics hub.