*** ----> Saudi opens new logistics zone in Jeddah | THE DAILY TRIBUNE | KINGDOM OF BAHRAIN

Saudi opens new logistics zone in Jeddah

Saudi Arabia launched yesterday a new logistics zone open to private investors in the Red Sea port city of Jeddah, as part of a wider industrial initiative to diversify the economy away from oil and create jobs for Saudis. The al Khomra zone - which will support activities around shipping, freight distribution and transport of goods - extends over 2.3 million square meters in Jeddah, home to one of the kingdom’s largest ports.

As the biggest logistics zone in the country, it hopes to turn Saudi Arabia into a global logistics hub and create 10,000 direct jobs, said Minister of Transport Nabeel al-Amudi. It is part of the broader National Industrial Development and Logistics Program (NIDLP), which aims to create 1.6 million jobs and attract investments worth 1.6 trillion riyals ($427 billion) over the next decade. Of that, 135 billion riyals is earmarked for investment in the logistics sector.

Under its ambitious reform strategy, the kingdom plans to have the private sector operate much of its transport infrastructure, including airports and sea ports, with the government keeping a role as regulator. Details of what the government plans to offer investors in al-Khomra were not disclosed, but the Saudi Ports Authority said the zone would offer opportunities to investors on a lease basis.

“Investment in the logistics zone in al-Khomra and other ports will total 7 billion Saudi riyals,” said Saad al-Khalb, president of the Saudi Ports Authority, without giving further details. Commenting on this remarkable milestone, President of Mawani (Saudi Ports Authority) Saad bin Abdulaziz Alkhalb described Al Khomra as a major leap for the logistics sector in Saudi Arabia. He added that the new logistics zone is expected to open up new investment and business opportunities and promote strategic partnerships with the private sector that will further contribute towards the development of the maritime trade and enhance the quality of operational and logistics procedures and services.

He also reiterated the significance of Al Khomra Logistics Zone due to its proximity to international trade routes, its strategic location in the southern governorate of Jeddah and close to Jeddah Islamic Port making it a global logistics platform and a major hub connecting the Middle East, Africa and Europe.

Alkhalb added that Al Khomra is characterized by its highly efficient roads network connecting Jeddah Islamic Port, King Abdulaziz International Airport and the upcoming Saudi Landbridge Project, along other various main roads in the Kingdom Al-Khomra joins other logisitics zones in the kingdom - the King Abdullah Economic City north of Jeddah has its own port and offers logisicts investments and NEOM, a mega project announced in 2017, has plans for a logistics zone.

Al Khomra’s location along the Red Sea coast, a major passageway for more than 13% of global maritime trade, will make it a vital hub on the Silk Road maritime trade route launched within the Belt and Road Initiative (BRI).