Around 35 percent of the $150 billion would be sanctioned by the Kingdom’s government, whereas, the remainder of the funds would come from private investors.

While speaking at an event, Abdulaziz Al-Duauilj, the head of the aviation authority said that Saudi Arabia plans to increase the number of international aviation routes from 99 to over 250 and more than triple total annual passenger traffic from 103 million in 2019 to 330 million by 2030.

During the launch of the logistics and transport blueprint last week, Crown Prince Mohammed bin Salman said, “This strategy will strengthen human and technical capabilities in the transport and logistics sector in the Kingdom.”

Recently, it was announced that the International Air Transport Association (IATA) will set up its Africa and Middle East regional office in the Kingdom of Saudi Arabia. An agreement was signed between IATA and Saudi Arabis’ General Authority of Civil Aviation.

In a press release, the authorities said, “The presence of the regional office of the International Air Transport Association (IATA) in the kingdom will augment the provision of the necessary support for air transport companies within the kingdom and the region.”

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iMile will use the funding to further expand its business in Middle Eastern markets such as Saudi Arabia, Kuwait, and Egypt, as well as expand its workforce.

Reportedly, the funding round for iMile was led by an unnamed venture capital firm active in the Chinese logistics market.

With regard to the fresh funding round, founder and chief executive at iMile, Rita Huang told the media, “Improving iMile’s tech prowess, customer experience and hiring new talent are our top priorities in the coming months. Some analysts say that logistics is out-of-fashion now but as a next-generation company, we see massive potential.”

“Our aim is to develop local solutions and technology to address regional needs. An indigenous R&D centre would also promote knowledge and capacity building in the region. This funding will enable us to continue our work of creating innovative last-mile solutions and scale our business.”

Currently, iMile operates in Saudi Arabia and the UAE. It has two R&D centres in China and the startup is planning a third in the Middle Eastern region.

Established in 2017, iMile facilitates the movement of goods from a transportation hub to the final destination as fast as possible. Its list of clients includes Amazon, Mumzworld and Noon.

iMile also offers warehouse and fulfillment facilities in the UAE and Saudi Arabia. Currently, the company has around 700 employees across the UAE, Saudi Arabia, and China.

According to UK-based Brandessence Market Research, the last mile delivery market is forecast to reach $61.57 billion over the next five years, almost double of $31.19 billion in 2018. It is expected to expand at a compound annual growth rate of 10.2 percent.

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The new 37,800 square metre Saudi Arabian Logistics air cargo facility will be able to process 130,000 tonnes of cargo annually a year.

The cargo facility, developed by the Saudi Arabian Logistics, will have a designated area for storing dangerous goods and services and radioactive products. It also has a designated area for shipping live animals, heavy-weight shipments, includes a cargo in-transit area and a 24 hours customer service office.

Saudi Arabian Logistics chief executive Omar bin Talal Hariri told the media, “At SAL, we recognise our tremendous responsibility as a major contributor to Vision 2030 objectives relating to the logistic services and the goals of the National Industrial Development and Logistics Programme (NIDLP). We aim to take advantage of the Kingdom’s strategic and vital location and transform it into a global important hub for cargo transportation and shipment.”

“We have constantly worked together with our partners in order to provide more flexible cargo services such as cargo handling, clearance, transportation while linking cargo services with other Saudi airports.”

He further pointed out the expansion will help Saudi Arabian Logistics to expedite the overall cargo processes and operations.

Saudi Arabian Logistics is a fully owned subsidiary of Saudi Arabian Airlines Corporation. It serves as the main cargo gate at Saudi Arabia’s airports and is the only logistics entity that connects carriers with airports and provides them with different services.

Earlier, Saudi Arabian Logistics also launched a cargo facility at the Cargo Village of King Khalid International Airport.

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The development of the logistics complex by Agility in Saudi Arabia is a part of the company’s plan to invest $267 million across the kingdom.

Spanning over an area of 900, 000 square metres, the complex provides storage and logistics services aligned with international standards and was developed by Agility Logistics Parks.

Agility’s logistics complex in Riyadh will provide its services to large multinational companies as well as to small and medium-sized enterprises in Saudi Arabia.

Dr. Nabil Alamoudi, Saudi Arabia Minister of Transportation told the media, “The Kingdom of Saudi Arabia has focused on developing the logistics sector by building infrastructure and directing capital investments towards increasing logistics capabilities. Saudi Arabia is also enhancing and simplifying import and export procedures and easing restrictions, to facilitate and open investment opportunities in the country. “

He added, “The Logistics Committee and the National Industrial Development and Logistics Program are working towards achieving the goals set out in the Kingdom’s Vision 2030, and are proud to partner with the private sector to accomplish this.”

Agility has also invested in Homoola, a Saudi Arabia-based startup that provides digital load-matching services and uses technology to improve road freight efficiency by connecting shippers and trucking companies.

Last week, the Saudi customs authorities signed a memorandum of understanding (MoU) with Agility to transform its warehouses in Saudi Arabia into bonded and re-export zone.

Besides Saudi Arabia, Agility has also invested across the GCC region in technology in a bid to revamp the logistics industry.

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The logistics zone, which will be developed in Jeddah in Saudi Arabia, will support activities around shipping, freight distribution and transport of goods.

Spanning over 2.3 million square metre in Jeddah, the logistics zone will be developed in different phases. The first phase of the project will cover an area of 2 million square metre.

Minister of Transport Dr. Nabeel bin Mohamed Al Amudi told the media, “Al Khomra is an umbrella for a number of logistics zones and platforms to be launched in the coming period through a prepared comprehensive strategy and plan.”

The logistics zone is expected to have a significant impact on supply chains and logistics sector in Saudi Arabia.

According to Dr. Nabeel bin Mohamed Al Amudi, the Al Khomra Logistics Zone will turn Saudi Arabia into a global logistics hub and create 10,000 direct jobs. He pointed out that Saudi Arabia wants to improve its various sectors and also its production to boost its economy.

The development of the logistics zone is a part of Saudi Arabia’s National Industrial Development and Logistics Programme, which aims to create 1.6 million jobs and attract investments worth $427 billion over the next decade.

According to reports, the volume of the logistics market in Saudi Arabia is $18 billion which is 55 percent of the total GCC logistics services’ market. By 2020, the value of Saudi logistics market is expected to be $25 billion, which will make it the fastest-growing market globally.

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Esnad Express is the 11th cargo company in the Kingdom of Saudi Arabia to be granted an express courier licence to legally operate customs clearance and last-mile delivery services. It first started operations as a cargo company and later grew into an international logistics operation. 

“We entered with smart technology to cater to the booming e-commerce sector in logistics, with the aim of changing the ways logistics work in the Middle East,” Muhammad Omer Tayyeb, COO and co-founder, said in a company press release. 

Esnad Express was established as a Saudi Arabian logistics startup in 2016, with over 20 years of experience in logistics and last-mile sector, he said. It operates more than 250 vehicles supported with GPS technology and online tracking for customers in an effort to boost its logistics services. 

“Bahrain is a new gateway we are opening to KSA for ecommerce companies to give them fast entry into KSA through the Causeway,” Mutlaq Zaid Al Faraj, vice chairman and co-founder said. The company has set up cargo and courier clearance points at Riyadh Airport, Riyadh dry port, King Abdulaziz Port in Dammam, and at Jeddah Islamic Port. 

It caters to a myriad of industries such as energy, ecommerce, chemicals, automotive and much more. Esnad Express has a strong industry presence in the Kingdom, UAE, Bahrain, China, and Hong Kong. 

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