In the open meeting hosted by the Asharqia Chamber:
New developments in the logistics sector in the Kingdom, especially in ports and airports
Financing and advisory solutions provided by the Industrial Fund Asharqia Chamber witnessed on Thursday morning (2/June/2022) an open meeting between businessmen in the Eastern Province with representatives of the Ministry of Transport and Logistics Agency, and the Saudi Industrial Development Fund, during which the initiatives and services of the Ministry and the Fund were reviewed to support the logistic sector, which is one One of the goals of the Kingdom's Vision 2030.
During the meeting, which was moderated by the Chairman of the Industry and Energy Committee of the Asharqia Chamber, Ibrahim Al-Sheikh, the Undersecretary of the Ministry of Transport and Logistics Services (for logistic services), Eng. Louay bin Omar Mashabi, stated that the logistic sector is possible for many economic sectors, it is possible for tourism, trade, and industry, and it is a sector that achieves - God willing. - Many of the goals of the Kingdom’s Vision 2030, include transforming the Kingdom to be a global logistics platform. We are proceeding on this path, and we are approaching - God willing - this goal and global indicators confirm this, including several Saudi ports getting leadership positions in the world.
Mashabi added that this responsibility and the great burden that the ministry bears is shared by the private sector, and we have taken a supportive step in this direction, represented in launching the agency, which looks at the different and overlapping logistical patterns as one bloc, with integrated legislation that serves all activities of different types and services.
What confirms that we are close to the goal - and what Eng. Mashabi said - is that the Kingdom - at present - is one of the fastest growing in terms of the volume of growth of the logistics services market, ahead of the growth rate of the continents of Europe and North America. The reason for this is the level of economic movement witnessed by the Kingdom in recent years, which requires further expansion and growth in this important sector, so we aspire to be among the first in the logistical performance.
In this regard, he pointed out that about 60% of air cargo operations are related to passenger planes, with the recovery from the effects of the pandemic, the ambitious targets for air connectivity, and the growth of the aviation and tourism sector, which will serve air freight in general and e-commerce in particular.
He mentioned that new developments are being witnessed by the logistic sector in the Kingdom, which indicates that we are on the right path, for example, the development of the volume of electronic commerce until it exceeded the targets and became 25% of the volume of trade in the Kingdom and is constantly increasing, which necessitates the rapid transport and mail services sectors Finally, to raise its efficiency and capabilities to keep pace with the growing demand.
He pointed out that the ministry launched the unified logistic license (which replaces the land, sea, and air freight brokers) and was able to provide clearance services. More than 70 companies have applied for this license, where the license is obtained electronically and without human intervention.
During the meeting, the Executive Vice President for Studies at the Saudi Industrial Development Fund, Eng. Ahmed Al-Baqawi said that the fund has expanded its activities as the main financial enabler for the National Industrial Development and Logistics Program (NDLP), one of the programs of the Kingdom’s Vision 2030, to provide its services to four main sectors: industry, energy, and mining. , and logistics. He added that the Kingdom has great potential to become a leading industrial power and a global logistics platform with highly competitive advantages and that the Fund works in partnership with the system's entities to provide strategic support to achieve these goals.
During the meeting, the services and programs provided by the Fund to the logistic sector were also reviewed, including a land program and a logistical loan in cooperation with the Saudi Authority for Industrial Cities and Technology Zones "Modon", the Royal Commission for Jubail and Yanbu, the Special Economic Cities and Zones Authority, and King Abdullah Economic City, in addition to financing products and programs different motivational factors.
The advisory services product, which aims to improve project performance and sustainability, was also reviewed by providing advisory support to small and medium enterprises by studying appropriate opportunities and developing plans to improve performance and achieve sustainable growth. Benefiting from the Fund's expertise in the areas of technical studies and market studies.
The director of the meeting, Chairman of the Industry and Energy Committee at the Asharqia Chamber, Ibrahim Al-Sheikh, explained that the industrial sector occupies increasing importance in the national economy, and is considered a mainstay in achieving our development goals within the pillars of the Kingdom’s Vision 2030, as it is a sector with great capabilities in promoting economic growth and carrying more opportunities It is characterized by its connection and overlap with most other economic activities.
Accordingly, Al-Sheikh said: “As industrialists, we all commend the great efforts made by the Ministry of Transport and Logistics and the Industrial Development Fund to achieve industrial development policies and programs in the Kingdom, both in terms of enabling national capabilities to consolidate the Kingdom’s position as a global logistics center and a mobility model. The integration, which reflected positively on the growth of the industrial sector in the Kingdom, or the material and advisory support provided by the Industrial Development Fund supports the development and growth of local industries and raise their level of performance.
