Saudi Arabia Freight and Logistics Market Outlook

According to the report by Expert Market Research (EMR), the Saudi Arabia freight and logistics market attained a value of USD 31.82 billion in 2024. Aided by the rapid expansion of the e-commerce industry, major infrastructure development under Saudi Vision 2030, and the Kingdom’s strategic location as a global trade hub, the Saudi Arabia freight and logistics market size is projected to grow at a CAGR of 5.50% between 2025 and 2034, reaching a value of USD 54.35 billion by 2034.

The freight and logistics sector serves as a crucial pillar of Saudi Arabia’s economic transformation strategy, supporting industrial diversification, non-oil exports, and international trade connectivity. The government’s focus on creating a world-class logistics ecosystem under Vision 2030, along with large-scale investments in transport infrastructure, digitalisation, and customs reforms, has significantly strengthened the sector’s growth trajectory.

Saudi Arabia’s geographic advantage, positioned at the crossroads of Asia, Africa, and Europe, further enhances its potential to become a leading global logistics hub. The increasing volume of imports and exports, growing industrial base, and expansion of e-commerce platforms have amplified the demand for efficient and technologically advanced logistics services across air, land, and sea transport segments.

Saudi Arabia Freight and Logistics Market Size and Share

In 2024, Saudi Arabia freight and logistics market stood at USD 31.82 billion, with the road freight segment accounting for a substantial share of the overall market, followed by maritime and air freight. The country’s extensive road network, connecting major industrial zones and ports, plays a critical role in facilitating domestic and regional trade. The maritime freight segment benefits from the Kingdom’s major ports such as Jeddah Islamic Port, King Abdullah Port, and King Abdulaziz Port, which collectively handle millions of containers annually.

The logistics market in Saudi Arabia is supported by a diverse range of stakeholders, including logistics service providers (LSPs), freight forwarders, warehousing operators, and express delivery companies. Major international players such as DHL, FedEx, DB Schenker, and Maersk operate alongside regional and local companies like Saudi Post, Bahri, and Almajdouie Logistics, creating a competitive and dynamic market landscape.

In terms of market share, logistics services associated with manufacturing, retail, construction, and oil and gas sectors hold significant portions. Meanwhile, the e-commerce logistics segment is emerging as one of the fastest-growing submarkets due to increasing online shopping activity and the rising demand for last-mile delivery solutions.

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Saudi Arabia Freight and Logistics Market Trends

Several key trends are reshaping the Saudi Arabia freight and logistics market:

  • Digital Transformation and Smart Logistics:
    The integration of digital tools, such as AI, IoT, and blockchain, is transforming supply chain operations. Real-time tracking systems, predictive analytics, and smart warehousing are improving transparency, efficiency, and cost control across the logistics network.

  • Growth of E-commerce Logistics:
    The rapid growth of online retail platforms, supported by high internet penetration and young consumer demographics, has led to a surge in parcel delivery and last-mile logistics services. Companies are expanding fulfillment centers and adopting automation to meet growing customer expectations.

  • Sustainability and Green Logistics:
    In alignment with Vision 2030’s environmental objectives, logistics providers are increasingly focusing on reducing carbon emissions, adopting electric and fuel-efficient vehicles, and implementing sustainable warehousing solutions.

  • Expansion of Free Economic Zones:
    The establishment of logistics and free trade zones, such as NEOM, King Abdullah Economic City (KAEC), and Jazan Economic City, is encouraging international logistics investments and boosting trade facilitation.

  • Increased Public-Private Partnerships (PPPs):
    Government initiatives to involve private players in developing and operating logistics infrastructure are fostering efficiency, innovation, and global competitiveness within the sector.

  • Integration of Multimodal Transport:
    Enhanced connectivity between air, sea, and land transport is enabling seamless multimodal freight movement, reducing delivery times and improving supply chain reliability.

Drivers of Growth

The growth of the Saudi Arabia freight and logistics market is driven by multiple interlinked factors:

  • Vision 2030 Logistics Transformation:
    As part of the Kingdom’s ambitious economic diversification strategy, the National Transport and Logistics Strategy (NTLS) aims to position Saudi Arabia among the world’s top 10 logistics hubs by 2030. The plan focuses on infrastructure expansion, digitalisation, and customs reforms to streamline trade operations.

  • Strategic Location:
    Saudi Arabia’s central position at the intersection of key global trade routes makes it a natural logistics hub connecting Asia, Europe, and Africa. This strategic location supports international shipping, aviation, and land transport corridors.

  • Rising Non-Oil Trade and Industrial Growth:
    The government’s efforts to boost manufacturing and non-oil exports—especially in sectors like mining, petrochemicals, and construction—have led to increased freight activity.

  • Infrastructure Investments:
    Significant investments in transport infrastructure, such as new airports, port upgrades, and the expansion of the national railway network, are enhancing connectivity and capacity across logistics modes.

  • E-commerce Expansion:
    The e-commerce market in Saudi Arabia is witnessing exponential growth, fueled by digitalisation, high smartphone penetration, and a tech-savvy young population, driving demand for modern logistics services and warehousing.

  • Trade Liberalisation and Customs Reforms:
    Simplified customs procedures, improved clearance times, and adoption of digital trade documentation are making logistics operations more efficient and cost-effective.

Saudi Arabia Freight and Logistics Market Segmentation

The market can be divided based on form, demographics, sales channel and country.

Market Breakup by Form
  • Perfume
  • Deodorant
  • Cologne
  • Scent
  • Body Mist
  • Aftershave
  • Roll-On
  • Custom Made
  • Others

Market Breakup by Demographics

  • Men
  • Women
  • Unisex

Market Breakup by Sales Channel

  • Online
  • Offline

Market Breakup by Country

  • Saudi Arabia
  • United Arab Emirates
  • Kuwait
  • Iraq
  • Others

Competitive Landscape

Some of the major players explored in the report by Expert Market Research are as follows:

  • Ajmal Perfume
  • Guccio Gucci S.p.A.
  • LVMH Moët Hennessy
  • AL Haramain Perfumes LLC
  • Giorgio Armani S.p.A
  • Abdul Samad Al Qurashi Company
  • The Fragrance Kitchen
  • Calvin Klein, Inc.
  • Yas The Royal Name of Perfumes
  • ODICT
  • HB USA Holdings, Inc. (Kayali)
  • Others

Challenges and Opportunities

Challenges:

  • High Logistics Costs: Despite infrastructure improvements, logistics costs remain high due to inefficiencies in transport coordination and fuel expenses.

  • Regulatory and Bureaucratic Barriers: Although reforms are underway, procedural complexities can slow trade operations and affect market competitiveness.

  • Skilled Workforce Shortage: The sector faces challenges in attracting and retaining qualified professionals with expertise in logistics management and digital supply chains.

Opportunities:

  • Vision 2030 Infrastructure Projects: Major projects, including NEOM, Red Sea Global, and the Riyadh Metro, are creating new demand for freight and logistics services.

  • Development of E-commerce Logistics: The surge in online shopping offers significant opportunities for growth in warehousing, fulfillment, and last-mile delivery.

  • Regional Trade Integration: Saudi Arabia’s participation in regional trade agreements such as the GCC Common Market and partnerships with Africa and Asia offer avenues for logistics expansion.

  • Sustainable Transport Solutions: The transition to electric fleets, renewable energy-powered warehouses, and green logistics initiatives will create new growth prospects.

Saudi Arabia Freight and Logistics Market Forecast

Looking ahead, the Saudi Arabia freight and logistics market is expected to witness robust and sustainable growth over the next decade. With a projected CAGR of 5.50% between 2025 and 2034, the market is anticipated to reach a valuation of USD 54.35 billion by 2034.

This growth will be supported by ongoing infrastructure development, increased private sector participation, and continued digital transformation. The government’s commitment to transforming the Kingdom into a global logistics hub under Vision 2030 will drive further expansion, efficiency, and global competitiveness in the sector.

The integration of multimodal transport systems, smart logistics technologies, and sustainable practices will redefine the future of freight and logistics in Saudi Arabia. With rising non-oil trade, industrial diversification, and global connectivity, the country is poised to emerge as one of the most advanced and strategically positioned logistics markets in the world by 2034.

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