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The rapid development of Saudi logistics industry will bring many investment opportunities for Chine

Date: 2019-08-09
BrowsingS: 6
Source: https://mp.weixin.qq.com/s/uvJhXk4tTRK2TQ5YYe84xQ
Author:
Release date: 2019-08-09
BrowsingS: 6

In October 2018, Saudi Minister of Transport announced that Saudi Arabia would build 10 new logistics zones and open them to the private sector. The logistics industry in Saudi Arabia currently has a scale of 65 billion rials and is expected to reach 70 billion rials (about $18.7 billion) by 2020. Zhouyu of Zhonghengyuan believes that with the continuous advancement of Saudi Arabia's relevant planning, Saudi logistics industry will usher in a new period of rapid development in the future. It is mainly based on the following four aspects:

The rapid development of Saudi logistics industry will bring many investment opportunities for Chine

  

1. Saudi Arabia has obvious geographical advantages.


Saudi Arabia is situated on the Arabian Peninsula, bordering the Persian Gulf in the East and the Red Sea in the west, and bordering Jordan, Iraq, Kuwait, the United Arab Emirates, Oman and Yemen. It has a vast radiation market and is also a key country of the Maritime Silk Road. Its geographical advantages are obvious, which is conducive to the development of the logistics industry.


2. Improvement of infrastructure in Saudi Arabia


Saudi railway, highway, port and other infrastructure facilities have been improved. At present, Saudi highway mileage is more than 200,000 kilometers, railway length is 4,130 kilometers, 27 airports are operated, 20 ports are operated, and over 7.8 million standard containers are handled annually. Saudi Arabia plans to invest a total of $141 billion to build a domestic rail transit network by 2024, and 36 billion rials (about $9.6 billion) to build new ports and modernize maritime equipment.


3. The growing demand for Saudi cargo and other goods


Saudi Arabia's retail industry is the largest of the seven Gulf countries, accounting for 42% of the retail market share in the Gulf region. At present, demand in Saudi Arabia's transport industry has increased significantly, and daily cargo flow is expected to reach 2.5 million tons by 2020. By 2020, Saudi Arabia's combined annual growth rate of domestic freight demand will reach 4% - 5%, international freight demand growth rate will be 5%, while the combined annual growth rate of air and sea freight demand will be 7% - 8%.


4. The Saudi government encourages the development of logistics industry


The Saudi government attaches great importance to the development of transportation industry, and regards 'making Saudi special line into logistics hub of three continents' as one of the three pillars of Saudi 'Vision 2030'. In order to speed up the implementation of the logistics development strategy, the Saudi government has made great efforts to streamline the import and export process, reform the relevant government governance structure, promulgate a series of policies and regulations, continuously improve the market operating environment, and lay the foundation for the integration and development of the public and private sectors.


Zhouyu of COSCO believes that with the support of Saudi Arabia's policy, the diversification of its economy and the continuous implementation of relevant plans, Saudi Arabia's business logistics will attract more foreign investment in the future. China's commercial logistics and related enterprises should seize the opportunity of economic transformation and development in Saudi Arabia, actively carry out targeted layout in the field of Saudi commercial logistics, including investment in the construction of commercial logistics park and other projects, and further promote the in-depth development of economic and trade cooperation between China and Saudi Arabia.


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