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Impact of the US–Israel–Iran Conflict
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- Risk outlook for global energy markets
Impact on Energy and Trade Markets
- Oil and LNG supply disruption risks
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- Inflationary pressures across import-dependent sectors
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Saudi Arabia Freight and Logistics Market Report Overview
The Saudi Arabia freight and logistics market attained a value of USD 33.57 Billion in 2025 and is projected to expand at a CAGR of 5.50% through 2035. The market is further expected to achieve USD 57.34 Billion by 2035. Large-scale Vision 2030 logistics infrastructure investment, rising e-commerce driven demand for last mile delivery, and expanding warehousing capacity are prompting global and domestic logistics providers to strengthen their presence across the Kingdom.
Latest News on the Saudi Arabia Freight and Logistics Market (2026)
April 2026: Saudi Arabia Inaugurates New Integrated Logistics Zone Near Riyadh
Saudi Arabia inaugurated a new integrated logistics zone near Riyadh in April under the Vision 2030 logistics master plan, attracting commitments from DHL, Maersk, and Bahri. The zone offers customs facilitation, bonded warehousing, and multimodal connectivity. The launch supports the Kingdom's ambition to become a global logistics hub linking Asia, Europe, and Africa, Arab News reported.
March 2026: NEOM Awards Major Logistics Infrastructure Contracts to Global Firms
NEOM awarded multiple logistics infrastructure contracts in March covering port operations, inland transport, and warehousing services tied to the giga project's construction phase. Awardees include international logistics firms partnering with Saudi joint ventures. The contracts are expected to drive sustained freight volume growth in the Tabuk region throughout 2026 and beyond, Gulf News reported.
Key Market Trends and Insights
- International logistics majors continue to expand regional distribution hubs and warehousing capacity within Saudi Arabia's Special Integrated Logistics Zone to serve growing intra-regional trade flows.
- Strategic partnerships between domestic postal operators and global shipping majors are strengthening integrated e-commerce fulfilment capabilities across the Kingdom.
- Large scale logistics park joint ventures are expanding Grade A warehousing capacity in key gateway cities to support the Kingdom's ambition to become a global logistics hub.
Market Size & Forecast
- Market Size in 2025: USD 33.57 Billion
- Projected Market Size in 2035: USD 57.34 Billion
- CAGR from 2026 to 2035: 5.50%
- Fastest-Growing Function Segment: Warehousing and Storage
Rising e-commerce penetration and large-scale Vision 2030 logistics infrastructure investment are encouraging global and domestic providers to expand courier, freight forwarding, freight transport, and warehousing capacity across Saudi Arabia. Providers are prioritizing regional distribution hubs near major gateway cities, including Riyadh and Jeddah, to strengthen last mile delivery and cross border freight capabilities. Government backed logistics zones and free zone incentives continue to attract multinational logistics investment as the Kingdom works to expand its global logistics hub positioning.
This momentum was underscored in July 2026, when Saudi Arabia’s Ports Authority (Mawani) announced agreements worth approximately SR1 billion (USD 267 million) with national and international partners, including Maersk, to establish and expand seven new logistics centers spanning more than 384,000 square meters at Jeddah Islamic Port and the Al-Khumra Logistics Zone. The initiative, expected to create more than 5,000 direct and indirect jobs, brings the total number of logistics centers across Saudi ports to 34 and reflects how port-linked logistics zone expansion continues to reinforce the Kingdom’s positioning as a regional storage, assembly, and re-export hub under Vision 2030.
In addition, Saudi Arabia freight and logistics market players are allocating greater investment toward regional distribution hubs, e-commerce fulfilment partnerships, and warehousing capacity within the broader Middle East and Africa freight and logistics market in order to build differentiated portfolios amid rising trade flows. Companies like Kuehne + Nagel, Deutsche Post, UPS, and Aramex are strengthening their warehousing and freight forwarding capabilities to serve growing demand across the Kingdom.
Compound Annual Growth Rate
5.5%
Value in USD Billion
2026-2035
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Key Trends and Recent Developments
ROSHN Group and Agility Logistics Parks launched a 50:50 joint venture valued at over SAR 2.5 billion to develop a Grade A logistics park spanning approximately 1.3 million square meters in Jeddah, with construction targeted to begin in the fourth quarter of 2026. Providers can pursue large scale joint ventures to expand Grade A warehousing capacity near key gateway cities, further boosting growth in the Saudi Arabia freight and logistics market.
Aramex reported full year 2025 group revenues of AED 6.36 billion, with its logistics product line recording 18 percent revenue growth driven by contract wins and warehouse utilisation gains across the GCC and MENAT regions. Providers can strengthen contract logistics and warehousing capabilities to capture rising regional demand in the Saudi Arabia freight and logistics market.
DHL Supply Chain announced a EUR 130 million investment in a new 78,000 square meter logistics facility at Saudi Arabia's Special Integrated Logistics Zone, with construction beginning in the first quarter of 2026 and completion expected by the second quarter of 2027. Providers can expand warehousing capacity near major airport gateways to capture rising regional distribution demand in the Saudi Arabia freight and logistics market.
Maersk Saudi Arabia and Saudi Post signed a memorandum of understanding to create an integrated logistics solution for e-commerce businesses, with Saudi Post managing in-Kingdom operations and Maersk overseeing international transportation through its Jeddah logistics park. Providers can pursue strategic partnerships combining domestic and international capabilities to strengthen e-commerce fulfilment in the Saudi Arabia freight and logistics market.
Increasing Collaboration to Enhance Express Logistics Networks
Airport ground services providers are partnering with global express operators to strengthen ramp handling and storage support for growing air express shipment volumes. Companies are combining local ground handling infrastructure with international express networks to improve turnaround efficiency at major gateway airports. For example, in November 2025, Saudi Logistics Services Company (SAL) and FedEx signed an agreement for SAL to provide ramp and ground handling services and storage space for FedEx flights and shipments across the Kingdom. Continued ground handling partnerships are expected to strengthen express shipment turnaround capacity across the Saudi Arabia freight and logistics market.
New Express Operations Cente Opened at Riyadh's King Khalid International Airport
Express delivery providers are expanding dedicated airport processing infrastructure to handle rising air and land shipment volumes while improving customs clearance and delivery times. Facilities are being sited within airport cargo villages to shorten handoff times between air and ground transport. In February 2026, Saudi Arabia's Transport Minister inaugurated a new 10,000 square meter operations center for UPS contractor EIRAD at King Khalid International Airport in Riyadh, capable of processing more than 3,000 packages per hour. Continued airport-based processing capacity investment is expected to support growing express delivery demand within the Saudi Arabia freight and logistics market.
Rising Development of Dedicated Rail Freight Corridors for Efficient Logistics
The Kingdom’s rail operators are developing new freight corridors to shift cargo movement from road to rail and integrate rail hubs directly with port systems. Programs are prioritizing corridor connections between inland industrial centers and Red Sea and Gulf port gateways to ease trucking capacity constraints. In June 2026, Saudi Arabian Railways began connecting rail freight hubs at Dammam, Jubail, Ras Al Khair, Al Kharj, and Hail with improved access to Red Sea ports, alongside a Mawani led 17 kilometer logistics corridor linking Jeddah Islamic Port to Al-Khumrah Logistics Park. Continued rail corridor investment is expected to ease road capacity constraints and strengthen multimodal freight connectivity across the Saudi Arabia freight and logistics market.
Expansion of Port Cargo Handling and Cold Chain Infrastructure
Port authorities are investing in cargo handling equipment and cold chain infrastructure to support rising container volumes and temperature sensitive freight movement through major Saudi gateway ports. Programs are prioritizing crane capacity, yard expansion, and refrigerated storage to sustain high occupancy port operations. For example, in July 2026, the Saudi Ports Authority partnered with Red Sea Gateway Terminal and DP World on a SR641 million expansion of Jeddah Islamic Port, adding ship-to-shore cranes, a 200,000 square meter yard expansion, and increasing cold storage rooms from eight to 75. Continued port capacity investment is expected to support growing container and temperature-controlled cargo volumes across the Saudi Arabia freight and logistics market.
Saudi Arabia Freight and Logistics Industry Segmentation
The EMR's report titled "Saudi Arabia Freight and Logistics Market Report and Forecast 2026-2035" offers a detailed analysis of the market based on the following segments:
Market Breakup by Function
- Courier, Express and Parcel
- Domestic
- International
- Freight Forwarding
- Railways
- Airways
- Roadways
- Waterways
- Freight Transport
- Railways
- Airways
- Roadways
- Waterways
- Warehousing and Storage
- Temperature Controlled
- Non-Temperature Controlled
- Others
Key Insight: Freight transport accounts for a significant share of the Saudi Arabia freight and logistics market owing to the Kingdom's extensive roadways network and growing rail and air freight capacity supporting cross border and domestic trade. Freight forwarding continues to expand as international trade flows grow, while courier, express, and parcel services are recording rapid growth owing to rising e-commerce penetration and demand for both domestic and international delivery. Warehousing and storage is emerging as the fastest growing function segment, supported by large scale Grade A logistics park development and rising demand for temperature-controlled storage across food, healthcare, and retail supply chains. This trend was reinforced in February 2026 when iHerb opened an 18,000 square meter, cGMP-compliant fulfilment center within Riyadh's Special Integrated Logistics Zone, operated with third-party logistics partner CJ Logistics, to localize inventory and accelerate e-commerce delivery across the region.
Market Breakup by End Use
- Manufacturing
- Consumer Goods and Retail
- Food and Beverages
- IT Hardware and Telecom
- Healthcare
- Chemicals
- Construction
- Automotive
- Oil and Gas
- Others
Key Insight: Manufacturing and oil and gas segments continue to account for a substantial share of the Saudi Arabia freight and logistics market given the Kingdom's large industrial base and extensive petrochemical and energy sector logistics requirements. Consumer goods and retail is recording rapid growth supported by rising e-commerce penetration and expanding modern retail infrastructure, while food and beverages and healthcare continue to drive demand for temperature-controlled freight and warehousing services. Construction and automotive end uses maintain steady logistics demand supported by ongoing Vision 2030 infrastructure and industrial development projects.
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Saudi Arabia Freight and Logistics Market Share
By function, freight transport and freight forwarding account for a substantial share of the market through extensive roadways and growing cross border trade
Freight transport holds a significant share of the Saudi Arabia freight and logistics market owing to the Kingdom's extensive roadways network, which continues to handle the majority of domestic freight movement, alongside growing rail and air freight capacity. This segment continues to expand as cross border trade flows grow, supported by the Kingdom's strategic position connecting Asia, Europe, and Africa, with providers increasingly integrating rail and port linked corridors into their forwarding networks. This was reflected in May 2026 when Mediterranean Shipping Company (MSC) launched a new multimodal service linking Antwerp with Jeddah and King Abdullah Port, combining ocean freight with onward road transport to Dammam and feeder connections to other Gulf ports, illustrating how carriers are integrating sea and land freight networks to strengthen the Kingdom's cross border trade positioning.
Warehousing and storage represents the fastest growing function segment in the Saudi Arabia freight and logistics market, supported by large scale Grade A logistics park development and rising demand for temperature-controlled storage across food, healthcare, and retail supply chains. Providers are expanding both temperature controlled and non-temperature-controlled storage capacity to meet the Kingdom's growing e-commerce and industrial fulfilment requirements. This trend was reflected in October 2025 when LogiPoint signed an agreement to develop the Al Noor Logistic Park in Riyadh, its first major expansion beyond Jeddah, adding Grade A warehousing built with energy efficient technologies to serve the Kingdom's growing logistics corridor demand.
By end use, manufacturing and oil and gas maintain a substantial share of the market through the Kingdom's large industrial base
Manufacturing and oil and gas end uses continue to account for a substantial share of the Saudi Arabia freight and logistics market given the Kingdom's extensive industrial base and petrochemical and energy sector logistics requirements. Companies serving these end uses continue to expand specialized freight and warehousing capabilities to support large scale industrial supply chains. This was underscored in May 2026 when Group AMANA and ASMO, in partnership with Arcapita, announced a 1.4 million square meter integrated logistics hub at King Salman Energy Park to serve Saudi Aramco and its affiliates, featuring temperature-controlled Grade A warehousing and specialized chemical storage.
Consumer goods and retail is registering the fastest growth among end use segments in the Saudi Arabia freight and logistics market, supported by rising e-commerce penetration and the expansion of modern retail infrastructure across the Kingdom. Providers are scaling last mile delivery and retail focused warehousing capabilities to meet growing demand from this segment. This growth was reflected in Transport General Authority data showing that Saudi Arabia recorded more than 118 million delivery orders in the first quarter of 2026, a 49 percent year on year increase led by the Riyadh region, underscoring rising e-commerce and retail delivery demand across the Kingdom.
Competitive Landscape
The industry is becoming increasingly competitive as major Saudi Arabia freight and logistics companies expand warehousing capacity, form strategic partnerships, and invest in regional distribution hubs to strengthen their market position. International providers are prioritizing government-backed logistics zones and free zone incentives, while domestic players continue to expand their delivery networks and digital fulfilment capabilities.
Major Saudi Arabia freight and logistics market players are focusing on e-commerce fulfilment partnerships, Grade A warehousing expansion, and cross border freight capabilities to differentiate their offerings. Companies that combine strong domestic distribution networks, international transportation capabilities, and modern warehousing infrastructure are expected to gain a competitive advantage as the Kingdom's logistics sector continues to expand under Vision 2030.
Kuehne + Nagel Management AG
Founded in 1890 in Bremen, Germany and headquartered in Schindellegi, Switzerland, Kuehne + Nagel Management AG has operated in Saudi Arabia since 1977 across Jeddah, Dammam, Riyadh, and Tabuk, supporting the market through sea, air, and road freight forwarding, contract logistics, and customs clearance services under its Unified Logistics License. The company continues to expand its regional partnerships to serve the Kingdom's e-commerce, healthcare, energy, and industrial sectors.
Deutsche Post AG
Founded in 1995 and headquartered in Bonn, Germany, Deutsche Post AG supports the Saudi Arabia freight and logistics industry through its DHL Supply Chain and DHL Express divisions, which provide warehousing, contract logistics, and international courier services across the Kingdom. The company continues to expand its regional distribution capacity through new warehousing investments in Saudi Arabia's logistics zones.
UPS Express Private Limited
Founded in 1907 and headquartered in Atlanta, Georgia, United States, UPS supports the Saudi Arabia freight and logistics market through UPS Express Private Limited, providing international courier, express delivery, and supply chain solutions across the Kingdom. The company continues to expand its Saudi airport processing infrastructure to support growing express delivery demand.
The Aramex Group
Founded in 1982 in Amman, Jordan and headquartered in Dubai, United Arab Emirates, The Aramex Group advances the market through its express logistics, freight forwarding, and warehousing services across the Kingdom. The company continues to strengthen its contract logistics and warehouse utilization capabilities to serve growing regional demand.
Other key players in the market include FedEx Corporation, Agility Public Warehousing Company K.S.C.P., Mosanada Logistics Services, Zajil Express, Alma Express, SMSA Express Transportation Company Ltd., Wared Logistics, Saudi Logistics Services Company (SAL), Saudi Post Corporation, and United Warehouse Co. Ltd., among others.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Key Highlights of the Saudi Arabia Freight and Logistics Market Report
- Comprehensive evaluation of warehousing expansion, e-commerce partnerships, and freight network innovations across the Kingdom.
- Analysis of function, end use, and competitive demand patterns across Saudi Arabia's freight and logistics sector.
- Detailed competitive benchmarking of global and domestic freight and logistics providers operating in the Kingdom.
- Opportunity analysis covering Vision 2030 logistics infrastructure investment and Grade A warehousing development trends.
- Strategic insights into e-commerce fulfilment partnerships, logistics zone incentives, and regional distribution hub expansion.
Why Rely on Expert Market Research?
- Industry-focused analysts tracking evolving Saudi Arabia logistics infrastructure investment and competitive developments.
- Research combining provider strategies, regulatory developments, and Vision 2030 logistics policy initiatives.
- Robust methodology integrating primary interviews with verified secondary intelligence.
- Actionable business recommendations supporting investment, expansion, and market entry decisions.
- Forward-looking insights identifying emerging logistics hubs and competitive opportunities before mainstream adoption.
Call to Action
Unlock the latest insights with our Saudi Arabia freight and logistics market trends 2026 report. Discover function and end use growth patterns, warehousing investments, and key industry players. Stay ahead of competition with trusted data and expert analysis. Download your free sample report today and drive informed decisions in the market.
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Key Questions Answered in the Report
In 2025, the market reached an approximate value of USD 33.57 Billion.
The market is projected to grow at a CAGR of 5.50% between 2026 and 2035.
The market is estimated to witness a healthy growth in the forecast period of 2026-2035 to reach about USD 57.34 Billion by 2035.
Investing in Grade A warehousing capacity, forming e-commerce fulfilment partnerships between domestic and international providers, expanding regional distribution hubs within government backed logistics zones, and strengthening cross border freight forwarding capabilities.
The key trends aiding the market growth are the growing attempts to enhance the sustainability of freight and logistics operations and the surging usage of freight and logistics services in the oil and gas sector.
The major functions of freight and logistics are courier, express, and parcel, freight forwarding, freight transport, and warehousing and storage, among others.
The significant end uses of freight and logistics are manufacturing, consumer goods and retail, food and beverages, IT hardware and telecom, healthcare, chemicals, construction, automotive, and oil and gas, among others.
The key players in the market include Kuehne + Nagel Management AG, Deutsche Post AG, UPS Express Private Limited, The Aramex Group, FedEx Corporation, Agility Public Warehousing Company K.S.C.P., SMSA Express Transportation Company Ltd., and Saudi Post Corporation, among others.
Providers face rising labor and operational costs, fragmented last mile delivery infrastructure in remote regions, capacity constraints during peak e-commerce periods, and the need to expand temperature-controlled warehousing to meet growing food and healthcare demand.
Report Summary
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
|
| Breakup by Function |
|
| Breakup by End Use |
|
| Market Dynamics |
|
| Competitive Landscape |
|
| Companies Covered |
|
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