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Saudi Arabia’s logistics market is expected to reach over $17.5 billion in revenue by 2023, clocking a CAGR of 3.3 percent between 2018 and 2023, a report by Ken Research has said.
Saudi logistics industry is in its growth stage and is projected to expand in future through increasing government investment to improve the nation’s infrastructure and rising demand for express deliveries to meet the Kingdom’s logistics and warehousing market increased at a positive CAGR during the period 2012 to 2018.
The improving road infrastructure, rise in government support in the form of incentives and subsidies, improving corporate working environment due to large availability of expatriate workforce and rise in the industrial activities are expected to support the growth of the market in future, the report maintained.
Besides, the report said, rising demand of warehousing and cold storage, growing e-commerce and retail industry, entry of foreign players, rising government support, increasing trade with other major countries will drive the market in coming future.
Rising retail and FMCG industry of the country will accelerate the demand for warehouses storage and transportation & logistics facility.
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