Saudi collaborates with China to establish KSA-Sino Logistics Special Economic Zone
RIYADH : Saudi Arabia is aiming to become a linking point for logistics hubs in Asia, Africa and Europe, and to that end, they are exploring plans to collaborate with China on establishing a logistics special economic zone. These plans were discussed during the Global Logistics Forum 2024 in Riyadh on Sunday. The conference is being hosted by Saudi Arabia’s Ministry of Transport and Logistics Services.
This ambitious project, known as the KSA-Sino Logistics Special Economic Zone, will be located within the King Salman International Airport in Riyadh. The construction is set to commence next year, aligning with Saudi Arabia’s Vision 2030, a comprehensive strategy to diversify the kingdom’s economy away from oil and into industries such as logistics, trade, and manufacturing.
At the forum, Transport Minister Saleh bin Nasser Al-Jasser said Saudi Arabia has long been at the crossroads of global trade, a legacy the country plans to expand upon through new infrastructure and investment initiatives.
“Current disruptions highlight the fundamental need to ensure the safety and security of the supply chain and the seamless functioning of the backbone of global commerce,” Al-Jasser said. He also noted that Saudi Arabia has earmarked more than 1 trillion riyals (USD 267 billion) in investments by 2050 to build out its transport and logistics infrastructure, a key pillar of Vision 2030.
The new logistics zone aligns with the kingdom’s efforts to localize production through its “Made in Saudi” program, which encourages international companies to set up manufacturing facilities within Saudi Arabia and produce goods for global export. This, in turn, supports Saudi businesses by increasing exports to international markets.
Ewpartners, the first international private equity firm to establish a Saudi-Asia cross-border investment platform, will partner with the King Salman International Airport Development Company to spearhead the project. The SEZ is expected to cover 4 square kilometres and will be developed in four phases over 12 years, said Jerry Li (Founder and Managing Partner of Ewpartners).
The KSA-Sino Logistics Special Economic Zone is projected to draw over 3,000 wholesalers and retailers and approximately 200 light industrial manufacturers, primarily from China and Asia, but also from markets beyond the region. By attracting these companies, Saudi Arabia aims to solidify its position as a key logistics hub that connects international trade routes between Asia, Africa, and Europe.
The zone aims to create an integrated ecosystem that “will encompass global enterprises, logistics facilities, supply chains and high-end manufacturing”, significantly bolstering Saudi Arabia’s capacity for regional and global distribution, Li said.
Marco Mejia, acting CEO of the King Salman International Airport Development Company, said the partnership marked a significant step toward delivering on their vision of establishing the airport as a leading international logistics hub, serving regional and global logistics companies while supporting Saudi Arabia’s trade expansion.
By collaborating with Ewpartners, he said, they are poised to enhance logistics infrastructure, boost efficiency and create new opportunities for economic growth in Saudi Arabia and the wider region.
Li said Saudi Arabia’s vision to establish a major logistics hub has been a cornerstone of Ewpartners’ presence in the kingdom.
“After nearly five years of dedication to this initiative, our expertise in technology-driven solutions and cross-border investment, coupled with the strategic location of King Salman International Airport — positioned as a gateway between Asia, Africa and Europe — will unlock immense potential for cross-border trade. It will also pave the way for new growth and innovation in the kingdom’s logistics and e-commerce sectors,” he said.
Marco Mejia, the acting CEO of the King Salman International Airport Development Company, described the partnership with Ewpartners as a vital step toward establishing the airport as a leading global logistics hub.” By collaborating with Ewpartners, we are poised to enhance logistics infrastructure, boost efficiency, and create new opportunities for economic growth in Saudi Arabia and the wider region,” Mejia said.
Jerry Li noted that Ewpartners’ involvement in Saudi Arabia is deeply rooted in the kingdom’s vision to become a major logistics hub. “After nearly five years of dedication to this initiative, our expertise in technology-driven solutions and cross-border investment, coupled with the strategic location of King Salman International Airport — positioned as a gateway between Asia, Africa, and Europe — will unlock immense potential for cross-border trade.”
Li added that the zone is expected to become a world-class platform for both local and international businesses, fostering innovation and growth, particularly in the logistics and e-commerce sectors.
The economic zone will feature a logistics or light industrial park, alongside an international commercial park that will serve as a base for global businesses. This setup is designed to promote international trade and attract foreign direct investment. Additionally, the site will offer a living space and supporting facilities, providing professionals with the necessary amenities for both work and daily life.
This holistic approach aims to further enhance Saudi Arabia’s appeal as a destination for global investment, offering companies a comprehensive solution that caters to both business and lifestyle needs.