Saudi Arabia Dry Logistics and Warehousing Market Outlook to 2025: Ken Research
Saudi Arabia Dry Logistics and Warehousing Market
The market showcased a volatile growth trajectory. Dry logistics revenue declined at a CAGR of single digit CAGR during 2015-2019 due to oil price shock further leading to an economic slowdown during 2016-2017 period. Saudi Arabia is located at the crossroads of significant international trade route that connects Asia, Europe and Africa. This strategic location provides the Kingdom with a unique advantage over other nations thus, enabling it to become a leading regional logistics hub. In April of 2016, Saudi Arabia announced its Vision 2030 which includes transforming the Kingdom into a preferred logistics hub. It is making continuous efforts to make imports and exports processes more streamlined. Additionally, government is restructuring the regulations and structures logistics sector government and opening the way for market liberalization and private sector participation. Expansion of industrial cities continues to offer opportunities for foreign investors towards developing the non-oil manufacturing base, warehousing & logistics segments. For instance, Pfizer opened a manufacturing facility in the King Abdullah Economic City in the year 2017. Non-oil manufacturing growth is facilitated by launch of National Industrial Development and Logistics Program (NIDLP) in Jan 2019 by KSA government. Various companies are investing in Special bulk trucks and heavy lift movements to diversify their Revenue streams and Operations. For instance, Bahri launched new dry-bulk carrier ‘Sara’ & increased their total fleet of dry-bulk carriers to 6 ships in KSA.
For More Information on the research report, refer to below link:-
Saudi Arabia Dry Logistics Market Segmentation
By Service Mix (Dry Freight Forwarding, Dy Warehousing and Value Added Services): The industry is highly fragmented with few players offering complete end-to-end logistics solutions. The inability of domestic and international providers to offer nationwide end-to-end logistics is due to the lack of a capable and willing workforce, as well as issues around asset ownership, IT requirements, structural and legislative trade restrictions. The freight-forwarding segment of the logistics market is the biggest contributor to growth in this sector.
By Regions (Jeddah, Riyadh, Dammam and Others): Jeddah has been dominated in terms of dry logistics revenue during 2019. The cities of Jeddah & Riyadh have been the most populous cities in the kingdom. These cities also account for most of the industrial areas and indicate a high demand for built-to-suit and automated warehouses therefore, driving revenue from dry goods storage. Lastly, value added services segment include packaging, labelling, inventory management, cross docking, and door-to-door delivery.
Saudi Arabia Dry Freight Forwarding Market:
Freight forwarders offer all a limited range of services depending on their size, number of personnel, and number of branches. Major Flow corridors include the Asian region and European countries in terms of freight revenue during 2019. Saudi Arabia launched new logistics zone in 2019 which is open to private investors in the Red Sea port city of Jeddah therefore, diversifying the economy away from oil and creating more jobs for local Saudis. Road was observed as the most prominent freight mode in Saudi Arabia for dry logistics, followed by air, sea and rail in the year 2019. International freight had dominant share largely due to higher exports of F&B, white goods, textile, furniture & machinery, engineering products, industrial products and others. Asian Countries were observed to lead in terms of International Freight Movement. Major export destinations include China, Singapore, India, Malaysia, and Japan. Growth is expected to be majorly contributed by economic and industrial activities associated with logistics services such as transportation of goods & warehousing. The country is concentrating in expanding & developing its logistics infrastructure such as intermodal connectivity, logistics parks, and ports, which are expected to create more business opportunities in Saudi Arabia. KSA government aims to aggressively drive and position 50 islands and 100 miles of Red Sea as a global tourist destination. The expansion of Red Sea corridor in Jeddah, the minerals hub in Yanbu, King Abdullah port and NEOM project are also expected to drive the freight forwarding industry. During COVID pandemic, cargo was backlogged at KSA’s major container ports, travel restrictions led to a shortage of truck drivers to pick up containers, and ocean carriers canceled sailings. All passenger flights remain suspended, causing capacity constraints. However, commercial aircraft are operating to carry freight and freighter schedules have been ramped up. Saudi customs authority has restricted freight forwarders to only two brokers from each company at all ports of entry, which is causing delays in freight clearances. Free time has been extended in all air and seaports to 10 days from freight arrival.
Saudi Arabia Dry Warehousing Market:
Warehousing industry ecosystem is dominated by domestic companies in terms of warehousing space, followed by international companies. Ecosystem has underscored asset monetization deal with Real Estate developers purchasing the warehousing assets to generate current income under operating lease model to warehousing operators. Most of the warehouses are concentrated in Jeddah, Riyadh and Dammam in Saudi Arabia. The major Companies include LSC logistics, Almadjioue Logistics, Mosanda Logistics, Tamer, Agility, GAC, GSL and others. Construction Materials / Industrial end user dominated in terms of warehousing revenue followed by retail, healthcare, F&B, automotive and others in 2019. Industrial warehouses dominated in terms of dry warehousing revenue and have a regional concentration in Riyadh, Jeddah, Dammam and Al-Khobar. With increasing construction of warehousing hubs, the warehousing sector has presented real estate companies (especially office & retail) with multiple opportunities owing to their high need for high-quality & automated facilities to carry a smooth supply chain process. Real estate companies were observed to dominated in terms of overall warehousing space during 2019 followed by captive companies and logistics companies. Warehousing within Jeddah region has been undergoing a major redevelopment, driven by government’s objective to increase industrial contribution towards GDP. Jeddah region dominated in terms of overall warehousing space in 2019 followed by Riyadh, Dammam, Al-Khobar and others. Strong demand is anticipated for full-fledged integrated centers that include new-generation logistics facilities (built-to-suit automation model) along with the emergence of 3PL companies that handle stock distribution for companies with large and sophisticated supply chains. Various reforms introduced by the KSA government under the Kingdom’s Vision 2030 and increased participation of the private sector are expected to increase trade therefore, contributing towards warehousing requirements in future. During COVID-19 pandemic, large areas of warehousing lands are occupied by an aging supply of conventional warehouses. KSA market rents dropped by 10-15%, with an average lease rates for conventional warehouse dropping in 2020. Future supply is expected to be limited as developers delay development of new projects until market conditions progress.
Saudi Arabia Customs Clearance Market
Introduction to concept of E-filing of documents has significantly reduced the average time for customs clearance even before the docking of the vessel. Majority of Saudi Customs declarations are now cleared within 24 hours. Increased participation from local Saudi operators as they enjoy complete / full revenue sharing i.e. no regulatory constraints for domestic players and they can perform customs clearance operations on their own. Customs clearance revenue via air mode took a fall due to limited air freight movement leading to decline in shipments via air. It is further expected to go down in the near future as air freight mode is quite expensive compared to sea. Jeddah Islamic Port captures majority of total transshipment containers (discharged and loaded) in 2019 therefore, making it the transshipment hub of the Kingdom. With Red Sea on one side & the Gulf on the other side of KSA, both Jeddah Islamic Port and King Abdul Aziz Port are placed at strategic locations. Transhipment cargo volumes are driven by overseas ports in GCC region including UAE and Bahrain. Majority of containerized transshipment cargo was done via Jeddah Islamic port in 2019 and the remaining via King Abdulaziz Port in Dammam during the year 2019. Dammam Port has heavy port congession when compared other commercial sea ports in KSA owing to its large area.
Comparative Landscape in Saudi Arabia Dry Logistics and Warehousing Market
Competition was again observed to be highly fragmented in both freight forwarding and warehousing segment along with the presence of both international and domestic players. Nevertheless, the local / domestic players have a larger presence in the market and were observed to compete on the basis of key clientele, revenue matrix, logistics networking, average pricing, technological advancement and value added services.
Saudi Arabia Dry Logistics and Warehousing Market Future Outlook and Projections
Continued progress towards economic diversification should continue to reduce the economy’s reliance on hydrocarbons. The government also plans to pump investment into economic cities and other industrial projects to boost logistics and transportation centers. The KSA government is highly promoting the integration of multi-modal hubs across the country. FDI within the logistics infrastructure development, constructing regional & international logistics service centres and improving the efficiency of trade routes can collectively help the country in becoming a hub over long term. The KSA government’s preference towards domestic and foreign based contracting firms has promoted competition in the logistics segment. In order to attract new investments, the government is willing to open its project and tender market to qualified regional and international firms. Development of New Economic Zones / Cities such as KAEC to attract foreign investments by providing special incentives is another program by KSA government. The economic cities are planned to be located near to sea ports and major consumption bases, which is expected to bring manufacturing closer to these bases.
Key Segments Covered in KSA Dry Logistics Market:-
Value Added Services
Others (Al- Khobar, Medina, Tabuk and several other cities)
KSA Dry Freight Forwarding Market:-
Mode of Freight
International and Domestic Freight
International and Domestic Companies
Flow Corridors (International Freight)
NAFTA (North American Free Trade Agreement)
Other Regions (Africa and South America)
KSA Dry Warehousing Market:-
Industrial / Retail
Container Freight / Inland Container Depots
Construction Material / Industrial
Food and Beverage
Others (Agriculture, Chemicals and Rest)
Real Estate Companies
Others (Al-Khobar, Medina, Tabuk and other cities)
KSA Customs Clearance Market:-
Overall Value Added Services
Customs Clearance Revenue by Sea
Customs Clearance Revenue by Air
Transhipment Cargo Volume
Discharged Transhipment Containers
Loaded Transhipment Containers
Key Target Audience:-
International Domestic Freight Forwarders
Time Period Captured in the Report:-
Historical Period: 2014-2019
Forecast Period: 2019–2025
Four winds logistics
Uniworld Freight Services
BAFCO International Logistics and Shipping Co.
Hala Supply Chain
Platinum shipping and logistics
OCSCL (Oriental Commercial & Shipping)
Kanoo terminal Services
Online Retail Companies Covered:-
Abdullah Othaim Market
Key Topics Covered in the Report:-
Saudi Arabia Overview and Major Economic Zones
Saudi Arabia Dry Logistics and Warehousing Market
Saudi Arabia Dry Freight Forwarding Market
Saudi Arabia Dry Warehousing Market
Snapshot on Saudi Arabia Customs Clearance and Transhipment Market
Industry Analysis (Decision Making Process, SWOT Analysis, VAT Impact and Law of Public Transport on Roads of KSA)
Cost of Setting up a Logistics Business in Saudi Arabia
Comparative Landscape – KSA Dry Logistics Market
Comparative Landscape in Saudi Arabia Online Retail Market
Recommendations / Success Factors
Ankur Gupta, Head Marketing & Communications
Ken Research Pvt. Ltd.,
Unit 14, Tower B3, Spaze I Tech Business Park, Sohna Road, sector 49 Gurgaon, Haryana - 122001, India
Ken Research is a Global aggregator and publisher of Market intelligence, equity and economy reports. Ken Research provides business intelligence and operational advisory in 300+ verticals underscoring disruptive technologies, emerging business models with precedent analysis and success case studies. Serving over 70% of fortune 500 companies globally, some of top consulting companies and Market leaders seek Ken Research’s intelligence to identify new revenue streams, customer/ vendor paradigm and pain points and due diligence on competition.
This release was published on openPR.
Permanent link to this press release:
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.
You can edit or delete your press release Saudi Arabia Dry Logistics and Warehousing Market Outlook to 2025: Ken Research here
News-ID: 2136301 • Views: 558
More Releases from Ken Research Pvt Ltd
Prominent Landscape of Baby Food Market Outlook: Ken Research
Conventionally, babies are fed with the soft home cooked food, a preparation that is still prevalent in underdeveloped and underdeveloped countries. However, the prominent increase in the urbanization and changing lifestyles have augmented the requirement for packaged baby foods in dissimilar societies and cultures. Such foods are nourished to babies amid the ages of four to six months and two years. The significant augment in the awareness for nutrition, prominent
We Deliver All Market Research Needs: Ken Research
The market research firms collects & analyse data related to clients, challengers, distributors, and other factors over the market. The major intelligence activities are further being performed by most of the market research companies. The objective of such market research activities have been widely dependent on collecting a wide range of data and further attempting to sell the services over all companies that desires to be benefited from information. The
Rise in Demand of Health Care Facilities to Drive Medical Devices Market: Ken Re …
The medical devices include devices, equipment, and instruments that are widely being used by the medical industries and the professional surgeons, medical assistants and doctors for the healthcare of the patients globally. Some of the key companies that are engaged in medical industry manufacturing the medical devices, surgical equipment and appliances. The medical devices include the much durable devices that can dispose after use. The medical devices further can be
Significant Demand from the Industry Applications is Expected to Drive Power Too …
The power tools devices include assembly tools, precision instruments requiring at a regular maintenance of the moving parts. These tools can be calibrated at any given time as per the precision of operation required. The power tool can be defined as equipment that can be started and operated by an additional power source such as electric motor, IC engines, and compressed air. The power tools devices are used for different
More Releases for Saudi
Saudi Arabia Infrastructure Research Report
The report provides a detailed analysis of the Infrastructure sector in Saudi Arabia, including the state of current infrastructure, the regulatory and financing landscapes, forecast spending across all key sectors and the major projects in the construction pipeline. Request A Free Sample Report- http://www.marketresearchhub.com/enquiry.php?type=S&repid=1311098 The report covers all key infrastructure sectors: roads, railways, electricity and power, water and sewerage, communication, and airports and ports. Summary With a young and growing population, together with rapid
Saudi Arabia Electronic Security Market-6Wresearch
Rising Security Concerns, Surging Security Spending and Large Scale Infrastructure Development to Boost the Demand for Electronic Security Systems in Saudi Arabia – 6Wresearch Infrastructure development in Saudi Arabia is accelerating at a rapid pace on account of government initiatives for economic diversification. However, with infrastructure development, country is also facing serious threats from the rising terrorism in the Middle East region. Electronic security market in the country is expected to
Saudi Arabia Radio LIve
Saudi Arabia Live Radio is created for the sake of our contemporary users to accommodate their demands and expectations. This innovative application is full of comprehensive Radio Stations, which are renewed and extended from time to time by the sophisticated professionals. The following app is absolutely free of charge and provides you with an exclusive opportunity to listen to your favorite music and newsworthy programs, as well as news from
Saudi Privatization Summit 2016 – “Unlocking the hidden potential of Saudi A …
The current oil catastrophe and economic stress is compelling Saudi Arabia to transform and is set to create the World's biggest and Middle East’s strongest Sovereign Wealth Fund by welcoming International investments and privatizing state-owned companies. The Kingdom envisions to increase non-oil revenue to USD 120 Billion per year, by 2020 and a six-fold growth to USD 266 Billion per year by 2030. Diversifying traditionally-oil based economies and reducing the
Saudi Arabia Banks in Strong Financial Condition
According to our latest research offering “Saudi Arabia Banking Sector Outlook 2015”, the banking sector of Saudi Arabia is one of most well-regulated and capitalized sectors in the Middle-East region. The Kingdom ranks first in terms of banking assets, net income, profitability, net interest income, loans, and deposits. Unlike many banks around the world, Saudi Arabian banks remained in a healthy financial condition during recent euro zone crisis. It is
Engineering Insurance Gaining Momentum in Saudi Arabia
In Saudi Arabia, engineering insurance is one of the fastest growing insurance businesses as it provides coverage for a builder’s risks, construction, mechanical, and electrical breakdown. According to a new research report by RNCOS, the level of awareness regarding engineering insurance is currently low in Saudi Arabia as this type of insurance policy is offered by less number of players, and many contractors are unaware of the benefits offered by