Amid Saudi Arabia’s relentless efforts to diversify its non-oil economy, recent reforms in the logistics sector—such as “air, land, and sea transport; port and airport management; storage; customs clearance; re-export; and local and international distribution”—play a pivotal role in enabling small and medium enterprises (SMEs) to expand their global presence.
*Boosting Non-Oil GDP*
According to the 2024 annual report by the National Industrial Development and Logistics Program (NIDLP), the sector contributed to increasing the non-oil GDP to 986 billion Saudi Riyals, achieving a 39% year-on-year growth.
The report highlighted several qualitative transformations, including the issuance of over 1,000 logistics licenses, reducing customs clearance time to just two hours, and increasing the number of re-export centers from only two in 2019 to 23 by 2024. These improvements have enhanced trade infrastructure efficiency, increased transparency, and facilitated access to regional and international markets.
*Enhancing the Trade Ecosystem*
The latest report from the National Industrial Development and Logistics Program reflects Saudi Arabia’s progress in developing its trade ecosystem. Improved customs procedures, higher port performance, and an expanding network of re-export centers “contribute to greater efficiency and connectivity, enabling businesses across the Kingdom to compete more effectively in global markets.”
*The Backbone of the Economy*
These developments are “critical” for SMEs, which are considered “the backbone of the Kingdom’s economy.” The ability to access new markets, gain clear visibility across supply chains, and efficiently manage cross-border trade is “essential for the growth of SMEs and e-commerce businesses, especially as logistics increasingly rely on data and digital technologies.”
*Achieving Vision 2030 Goals*
As Saudi Arabia continues its pursuit of Vision 2030 objectives, strengthening logistics capabilities is crucial for building more sustainable and resilient trade networks. This includes adopting modern technologies, diversifying transportation methods, and supporting exporters with smarter, more integrated solutions that help them adapt to changing global demands.
*Effective Market Access*
SMEs constitute the vast majority of businesses in the Kingdom and stand to benefit the most from these transformations. Effective access to logistics networks and digital trade tools provides unprecedented opportunities to enter global markets, with scalability to meet growing domestic and international demand.
The report confirms that logistics will remain a vital driver in supporting SMEs and solidifying Saudi Arabia’s position as a regional and global trade hub, in line with the comprehensive transformation led by Vision 2030.
*FedEx Supporting the Transformation*
FedEx aligns with this transformation through a range of integrated services and initiatives tailored for small businesses, such as the FedEx Cluster program, which offers sector-specific consulting, improved international delivery times, and digital package tracking systems. The company also provides flexible, cost-effective shipping options and end-to-end shipment visibility, supporting exporters and online sellers beyond the Kingdom.
