■ 英語タイトル：Saudi Arabia Freight and Logistics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
■ 発行会社/調査会社：Mordor Intelligence
The Saudi Arabia Freight and Logistics Market is vaued at USD 21.46 billion in 2020 and is expected to reach USD 32.12 billion by 2026 growig at a CAGR of 6.95% through the forecast period.
During the pandemic, the country experienced a shift in the purchasing behaviour from traditional hypermarkets and supermarkets to online shopping for basics like grocery and other items. This is expected to increase the scope and competition in the long term for the logistics players in the country in terms of faster delivery and seamless experience for the customers.
The Kingdom of Saudi Arabia, being a focal area and a large economy, which speaks to an individual advantage that changes the Kingdom into an important logistics hub. The kingdom has set out on an eager program to improve logistics services, which incorporates streamlining import and export processes, infrastructure enhancements, administration and regulatory reforms, and progression and privatization of the market.
The prospects for growth of the Saudi logistics industry look promising over the next five years as economic diversification, policy reforms, tax regimes, and foreign direct investment (FDI) policies are shifting in favor of an open economy and encouraging private investment. Until recently, Saudi Arabia was a closed market. However, recent initiatives on economic diversification have opened doors to industrial, retail, and logistics players around the world by allowing 100% ownership.
Key Market Trends
VISION 2030 fuelling the demand for freight and logistics
The Saudi government, with the Saudi Vision 2030, is actively looking into reforming the governance structures and regulations, and head toward opening a path for market liberalization and private-sector participation. The government is planning to become more open to issuing licenses for full-fledged foreign logistics businesses.
Due to the initiative by the government, new entrants are expected to fill the gap in Saudi’s overall logistics landscape. The Vision also includes the creation of Greenfield industrial sites and cities. One of the most prominent projects to date is the King Abdullah Economic City, which is mostly focused on industry and logistics. It is about 70 km north of the Red Sea port of Jeddah. The city has its own seaport, the King Abdullah Port, with a current capacity of handling 1.4 million TEU and aspires to reach 10 million TEU capacity.
The country is strengthening its logistics competitiveness and contributing to increasing the volume of non-oil exports and diversifying the Kingdom’s sources of income in accordance with the objectives of Vision 2030.
The size of the maritime sector has doubled in the past decade, bringing the number of ships operating in it to 53,000 marine vessels, registered in 150 countries, and carrying 11 billion tons of cargo annually (reported in April 2021). The Kingdom seeks for the private sector to contribute from 40 to 65% of the GDP, and has set among its plans to achieve this goal the development of the maritime transport sector, especially since 13% of the volume of international trade passes through the Red Sea.
Growth in E-commerce to drive the logistics & transportation sector
E-commerce in Saudi Arabia is experiencing a rapid spike in growth amid the Covid-19 outbreak. The supply chain will need to respond to increased competition in the last mile as e-commerce operations grow in the wake of the coronavirus. Last-mile logistics will be a highly competitive environment as companies look to their supply chains to give the best possible customer experience. This will call for technological innovation to enable retailers to scale-up home delivery systems to fast once normality returns.
To help incentivize this growth and ensure long-term sustainability in the segment, the government has also sought to improve the regulatory framework. In October 2019, the government implemented the E-commerce Law, designed to regulate digital payments and improve transparency, while on January 31, 2020, the Ministry of Commerce and Investment adopted the Implementing Regulations of the E-commerce Law, adding increased oversight to areas such as personal data protection, consumer rights and disclosure obligations.
As part of the Financial Sector Development Program, which is also a part of Vision 2030, the government plans to increase the proportion of online payments to 70% by 2030, up from the 2020 target of 28%. Owing to the factors mentioned above, logistics and infrastructure is set to witness growth during the forecast period.
The freight and logistics market in Saudi Arabia is fiercely competitive, fragmented in nature with the presence of many international and domestic companies. The top players in the segment include Deutsche Bahn Ag, DHL, Gulf Agency Company Ltd (GAC) among international players and, Almajdouie Group and Bahri among domestic players.
International companies are partnering with local players to form joint ventures. This provides an opportunity for local players to exploit the global network of international companies. In terms of logistics competence, the Kingdom aims to reform the regulations and governance, as well as liberalize and open the logistics market to attract best-in-class private sector logistics operators.
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1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS AND DYNAMICS
4.1 Current Market Scenario
4.2 Market Dynamics
4.3 Industry Attractiveness – Porter’s Five Forces Analysis
4.4 Value Chain / Supply Chain Analysis
4.5 Government Regulations and Initiatives
4.6 Technological Trends (Overview of Industry 4.0 in Vietnam and its Impact on the Logistics Sector)
4.7 Insight into the E-commerce Industry (Domestic and Cross-border E-commerce)
4.8 Insight into Cross-border Trucking and Intermodal Transportation
4.9 Brief on Freight Transportation Costs/Freight rates in Vietnam
4.10 Developments in Rail Freight Transport between Vietnam and Europe
4.11 Elaboration on Transit Trade though Vietnam
4.12 Impact of COVID – 19 on the market
5 MARKET SEGMENTATION
5.1 By Function
5.1.1 Freight Transport
22.214.171.124 Shipping and Inland Water
5.1.2 Freight Forwarding
5.1.4 Value-added Services and Other Services
5.2 By End User
5.2.1 Manufacturing and Automotive
5.2.2 Oil and Gas, Mining, and Quarrying
5.2.3 Agriculture, Fishing, and Forestry
5.2.5 Distributive Trade (Wholesale and Retail Segments – FMCG included)
5.2.6 Other End Users (Telecommunications, Food and Beverage, Pharmaceuticals)
6 COMPETITIVE LANDSCAPE
6.1 Overview (Market Concentration and Major Players)
6.2 Company Profiles
6.2.1 Agility Logistics
126.96.36.199 Deutsche Bahn Ag (DB Schenker)
188.8.131.52 Deutsche Post DHL Group
184.108.40.206 FedEx Corporation
220.127.116.11 Gulf Agency Company Ltd (GAC)
18.104.22.168 Al-Futtaim Group
22.214.171.124 Ceva Logistics
126.96.36.199 United Parcel Service of America Inc.
188.8.131.52 Almajdouie Group
184.108.40.206 Saudi Transport & Investment Co. (Mubarrad)
220.127.116.11 Rezayat Group
18.104.22.168 Mosanada Logistics Services
22.214.171.124 Saudi Bulk Transport
126.96.36.199 BAFCO International Shipping and Logistics
188.8.131.52 LSC Logistics
184.108.40.206 Takhzeen Logistics Company
220.127.116.11 Himmah Logistics
18.104.22.168 Abdul Latif Jameel Logistics*
6.3 Other Companies (Key Information/Overview)
7 FUTURE OF THE SAUDI FREIGHT AND LOGISTICS MARKET
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8.1 Macroeconomic indicators (GDP Distribution, by Activity and Region; Contribution of Transport and Storage Sector to Economy)
8.2 Insight into Capital Flows (Investments by Sector)
8.3 Economic Statistics – Transport and Storage Sector
8.4 External Trade Statistics – Export and Import, by Product
8.5 Insight into Key Export Destinations
8.6 Insight into Key Import Origin Countries