Saudi Arabia’s Emerging Role as a Leading GCC Logistics Market
The Gulf Cooperation Council (GCC) is an important logistics market for goods coming in from Asia, Europe or North America. In 2015, the GCC’s transportation and logistics industry was estimated to be USD ~47 billion, driven mainly by its above global average growing population base, healthy and robust trade activity, a fast growing non-oil economy, and planned government investments. Within the GCC region, Saudi Arabia presents the largest transportation and logistics market worth USD 19 billion in 2015. More than a quarter of imported goods comes from United States and China, while 50% of imported products arrive from the North American and the Asian continents. With high trade volumes and a number of projects in the pipeline to improve the freight infrastructure, opportunities will follow in Saudi Arabia's logistics industry. To add to its potential, Saudi Arabia was named 2nd place in the 2015 Emerging Markets Logistics Index and was among the top 10 trade routes from EU/US. It is expected that cargo volumes will triple from 300 million tones in 2005 to 900 million tons by 2020. This white paper provides an overview of the GCC's and Saudi Arabia's logistics industry, as well as the opportunities present in the market.
This white paper aims to address these main questions :
- 01. What are the main opportunities in today's GCC and Saudi Arabia's logistics industry?
- 02. What challenges are expected as foreign companies enter Saudi Arabia's logistics industry?
- 03. How can companies capitalize on the opportunities present in the market?