{"id":3917,"date":"2019-03-07T12:19:42","date_gmt":"2019-03-07T12:19:42","guid":{"rendered":"http:\/\/shahennews.com\/eng\/?p=3917"},"modified":"2019-03-07T12:19:42","modified_gmt":"2019-03-07T12:19:42","slug":"diversification-initiatives-in-saudi-arabia-open-growth-opportunities-in-the-logistics-industry","status":"publish","type":"post","link":"https:\/\/shahennews.com\/eng\/archives\/3917\/diversification-initiatives-in-saudi-arabia-open-growth-opportunities-in-the-logistics-industry\/","title":{"rendered":"Diversification Initiatives in Saudi Arabia Open Growth Opportunities in the Logistics Industry"},"content":{"rendered":"

shaheennews<\/p>\n

Growth prospects for the Saudi Arabian logistics industry look promising over the next five years. Economic diversification, policy reforms, tax regimes, and FDI policies are shifting in favor of an open economy and encouraging private investment. The advent of technology and the nation\u2019s vision on economic diversification are creating opportunities across several industry sectors such as retail, eCommerce, healthcare, and other non-oil-based industries. <\/span><\/p>\n

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In Frost & Sullivan\u2019s recent analysis of this market<\/span>, <\/b>analysts forecast the market to reach $60.68 billion by the end of 2024, driven by government initiatives in trade and industry promotion, development of economic cities, infrastructure development, and economic diversification.<\/span><\/p>\n

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“The Kingdom of Saudi Arabia (KSA) is focused on diversifying from oil and increasing GDP contribution from non-oil sectors by developing economic, industrial cities,\u201d said <\/span>Frost & Sullivan<\/b>. “Until recently, KSA was a closed market. However, the recent initiatives on economic diversification have opened doors to industrial, retail, and logistics players around the world by allowing 100% FDI ownership.”<\/span><\/p>\n

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Frost & Sullivan\u2019s recent analysis, <\/span>Saudi Arabia Logistics Industry\u2014Growth Insights, Forecast through 2024,<\/b> analyses the key developments and trends related to economy and trade and the freight transportation, logistics, and warehousing sectors in Saudi Arabia.<\/span><\/p>\n

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“This region is extensively focusing on industrialization and improving the transport infrastructure to become a transshipment hub,” noted Frost & Sullivan. “With the rapid growth in eCommerce, automation of warehouses with built-to-suit models is likely to be in high demand through 2024. In addition, the rail freight transportation is underutilized and the government is taking necessary steps by developing new rail lines and building better port connectivity to increase the usage.”<\/span><\/p>\n

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A few key strategic imperatives for service providers to stay ahead of competition include:<\/span><\/p>\n