Wednesday, November 11, 2020

Future Growth of Saudi Arabia Logistics Market: Ken Research

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Saudi Arabia logistics and warehousing market showcased a volatile growth with a strong dip in Revenues in 2016-2017 due to Oil Prices Slump in KSA. The logistics revenue stood at SAR ~ Billion in 2019 and further declined during 2020 due to Pandemic Situation in KSA. Saudi Arabia is located at the crossroads of a 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. The country is investing huge amounts in uplifting the infrastructure by the construction of new airports, seaports, Bridges improving the connectivity with Other GCC countries & other Importing Nations.

Free Trade zones have been one of the major focus areas for the KSA government to uplift warehousing and logistics, offer opportunities for foreign investors towards developing the non-oil manufacturing base, warehousing & logistics segments. For instance, Pfizer opened a SAR ~ million manufacturing facility in the King Abdullah Economic City in 2017. Non-oil manufacturing growth is facilitated by the launch of the National Industrial Development and Logistics Program (NIDLP) in Jan 2019 by KSA the government is willing to spend SAR ~ billion during the 2019-2020 period.


The country is working on regulating the Warehousing market in KSA by specifying regulations applied for warehousing standards and Bonded warehouses in KSA Market. Customs clearance is one of the most Revenue generating Value-added services due to its huge dependence on Seaports

Saudi Arabia Logistics And Warehousing Market

By Service Mix: The freight forwarding segment has dominated the logistics industry of Saudi Arabia and has grown at a five-year CAGR of ~% during the period 2014-2019P. The market was witnessed to grow from SAR ~ Million in 2014 to SAR ~ Million in 2019. There was a dip in the market in 2016-17 due to the Oil Price Crash in KSA which affected almost all the Sectors including Retail, E-commerce, Oil and Gas, and more. This has been revived due to infrastructural investments, increasing foreign trade, increasing export, and imports by the sea which has positively impacted the freight forwarding industry of the country. The demand for cold storages is increasing in KSA due to the rising demand for meat, seafood, and other perishable products.  The warehousing sector is even expected to boost by e-commerce companies opening their fulfillment centers across Saudi Arabia. Courier Express and Parcel market acquired a revenue share of ~% in 2019 which was an increment from 2014. VAS is being popular with all companies providing VAS as part of their service portfolio to give all possible services to their clients under one roof.

Saudi Arabia Logistics Market Segmentation

By Mode of Service: Saudi Arabia freight forwarding market was dominated by Road freight in terms of revenue and volume due to the trade with GCC Countries followed by Sea freight facing a lot of challenges due to Congestion and bad road infrastructure.

By Domestic/ International Freight:

The country is dominated by International freight by the sea with Asian and European countries and GCC Countries by Road. International freight constitutes ~% in terms of Revenue while Domestic Revenues constitute ~% Saudi Arabia is dominated by domestic freight by Road but International freight is dominated by sea and Airfreight.

Warehousing Space by Type of Entity: The Real estate companies generally lease out space to logistics companies and Captive companies. Captive companies are generally not included in the Market size as the revenues accounted by them will be for their own Assets.

Warehousing Space by Type of Warehouses: The Industrial Retail warehouses dominate the Market in terms of space and revenues followed by ICD/CFS near the ports. Cold storages are being extremely popular in Saudi Arabia due to extreme weather conditions.

Saudi Arabia Logistics Market By Service By Verticals, 2014-2025f

The country is extremely dependent upon Oil and Gas segment but is expected to reduce in the future under Vision 2030. E-commerce and Retail sector will flourish in the future with online retail stores by Lulu hypermarket, Bindawood, Danube, and changed Consumer Behavior due to COVID 19.

Competitive Scenario In Saudi Arabia Logistics By Service And Sub Service

Top Companies in Freight forwarding by Volume

The road freight market is dominated by Domestic local players as compared to sea freight and Air freight companies which are dominated by Big Conglomerate Groups or International Companies.

Top Companies in Warehousing by Space

Domestic and International players own their warehousing Place and also lease out space from other real estate companies for longer Durations.

Top Companies in Express by Revenues

International players dominate International Express Market while Domestic Express Market is dominated by Saudi Post.

Competitive Scenario In Saudi Arabia Logistics By Verticals

Prices in the logistics market are quite competitive. All the companies charge almost similar prices for all the services. They are ready to lower the prices to win the Clients.

Key Target Audience: -

3PL Logistics Companies

Integrated Logistics Companies

E-Commerce Companies

Oil & Gas Companies

Retail Companies

Pharmaceutical Companies

Logistics/Supply Chain Industry Associations

Time Period Captured in the Report:

Historical: 2015 to 2019

Future: 2019 to 2025

Companies Mentioned:

Bahri logistics

Saudi Post

NAQEL Express

Kuehne Nagel

Almajdouie logistics

DHL Express

Fedex Express

Al Ayed Transport

SMSA Express

Tamer logistics

BAFCO shipping and Logistics

DB Schenker

Agility

JAS Worldwide

Kanoo Terminal Services

LSC warehousing and logistics

Hala Supply Chain

Namma Cargo

Wared logistics

Al Rashed transport

UPS

Kerry logistics

Mubarrad transport

Hellman logistics

OCSCL Shipping and Logistics

Al karsf

SMT logistics

Saudi Lana logistics

Fourwinds logistics

Takhzeen

NTF cargo

Alpha Cargo

GAC

Platinum Shipping and Logistics

Key Topics Covered in the Report: -

Logistics Industry in Saudi Arabia

Saudi Arabia Logistics Industry

BAFCO Saudi Arabia Logistics Market Share

Bahri Logistics Market Growth in KSA,

Dammam Warehousing Market Growth

DHL Logistics Market Sales Revenue

E-commerce logistics Companies Saudi Arabia

Imports and Oil Export Earnings in KSA

Industrial and Retail Warehouse Market Saudi Arabia

Jeddah Warehousing Total Space Available

KSA Courier Express and Parcel Market Growth

KSA e-commerce logistics Market size

Logistics and Distribution Centers Saudi Arabia

For More Information On The Research Report, refer to the below link: -

Future Of KSA Logistics industry

Related Reports by Ken Research: -

UAE Cold Chain Market Outlook to 2025 – By Cold Storage (Ambient, Chilled and Frozen Warehousing) and Cold Transport (Land, Sea and Air), By End User (Dairy Products, Meat and Seafood, Pharmaceuticals, Fruits and Vegetables and Others) and By Ownership (Integrated and Contract Logistics)

Competition Benchmarking in UAE Logistics Market Outlook to 2025: Driven by High Ease of Doing Business, Technology Enhancement and Status of UAE as a Trans-shipment Hub

Saudi Arabia Dry Logistics and Warehousing Market Outlook to 2025 – Warehousing Automation and Investment within Transport Infrastructure to Drive Market Revenue)

Contact Us: -
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249

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