The Saudi Ministry of Transport has announced plans to launch a logistics zone in Al-Khomrah zone in Jeddah on the Red Sea, to be open to private investment.
The plans are part of a trend to diversify the Saudi economy away from oil in line with the Kingdom Vision 2030.
The statement said that the new zone, which is being built in Al-Khomrah, aims to strengthen the logistics sector to contribute to the diversification of economic resources of the oil-dependent kingdom. It’s noteworthy that Jeddah has one of the Saudi Arabia’s largest ports.
The launch of the new logistics zone to private investors in Jeddah port on the Red Sea is part of a broader industrial initiative to diversify the Saudi economy, reduce its dependence on oil and create jobs for Saudis.
Al-Khomrah, which will support shipping and cargo activities, spans 2.2 million square meters in Jeddah, one of the Saudi Arabia’s largest ports.
Saudi Arabia’s Transport Minister, Nabil Al-Amoudi said the zone, as being the Saudi Arabia’s largest logistics zone, hopes to transform the country into a global logistics hub and create 10,000 jobs directly.
The zone is part of the National Industry and Logistics Development Program, which aims to create 1.6 million jobs and attract investments worth SAR1.6tn ($427bn) over the next 10 years. Of this, SAR135bn riyals are earmarked for investment in the logistics sector.
As part of an ambitious reform strategy, Saudi Arabia plans to have a private sector that manages a large part of its infrastructure, including airports and seaports, with the government acting as regulator.
“The total investment in the logistics zone in the winery and other ports will reach seven billion riyals,” said Saad Al-Khalab, head of the General Authority for Ports.
Al-Khomrah will join other logistics zones in Saudi Arabia, such as King Abdullah Economic City in the north of Jeddah, which has its own port and provides logistical investments.
Over a decade, Saudi Arabia has spent $30bn to build six economic cities across the country to diversify the economy and create jobs for young people.