1.High demand of Technology warehouses with Automation especially by E-commerce companies
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Investment in technology: Adopting new technologies, such as IoT sensors and real-time monitoring systems, can help improve the efficiency and accuracy of the warehouse operations.
Collaboration with suppliers: Collaborating with suppliers to establish a well-coordinated warehousing ecosystem can help ensure the quality of temperature-sensitive products.
2.Saudi Vision 2030
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The expansion of the logistics industry has been emphasized in Saudi Arabia's Vision 2030, a comprehensive strategy for economic diversification. The government wants to make the nation a hub for global logistics by luring foreign capital and creating a welcoming environment for storage and logistics businesses.
50% non-oil exports as percentage of GDP by 2030, up from 16% in 2016 has boosted need for warehouses in KSA.
3.Favorable Location
Major cities such as Riyadh, Jeddah, Dammam and Mecca are the most populous cities in the country and are emerging as a hot bed for warehousing since most of the industrial regions are also located nearby.
- Fastest Growing Port: King Abdullah Port (KAEC) with 4 Mn TEU Annual Capacity
- Annual Port Capacity: Saudi Arabia handles more than 8 Mn TEU Annual Capacity
- Red Sea Trade: Saudi Arabia’s ports handle more than 90% of Red Sea Trade transits and ~ 30% of the East African Trade Transits
KSA's strategic location as a gateway between Europe, Asia, and Africa makes it an attractive hub for trade. The country has been actively promoting foreign trade and industrialization, attracting international companies to set up manufacturing facilities and distribution centers. This leads to an increased demand for warehousing services to support import, export, and local supply chains.