The Saudi Arabia freight and logistics market was valued at USD 33.57 Billion in 2025. The industry is expected to grow at a CAGR of 5.50% during the forecast period of 2026-2035 to reach a value of USD 57.34 Billion by 2035.
The freight and logistics market in Saudi Arabia is undergoing structural shifts, backed by the kingdom’s Vision 2030 logistics agenda. Aiming to become a global logistics hub, Saudi Arabia is investing USD 133 billion into transport infrastructure, including land bridge rail links and port expansions. The National Industrial Development and Logistics Programme (NIDLP) is a core enabler, supporting intermodal freight movement and digital warehousing ecosystems. In 2024, the country recorded over USD 137 billion for non-oil exports logistics activity.
Inland freight has been boosted through the Saudi Railways Organisation’s 950-km land bridge project, linking the Red Sea to the Arabian Gulf, accelerating the Saudi Arabia freight and logistics market growth. Additionally, the government has approved over 60 logistics zones by 2023, several operated under public-private partnership models. These zones are optimised for automated cold chain and bonded warehousing, especially in the Eastern Province and Riyadh region.
Growing trade ties with China and East Africa have also accelerated multimodal corridor development. According to the Saudi Ports Authority (Mawani), Jeddah Islamic Port handled over 5 million TEUs in 2023, shaping the Saudi Arabia freight and logistics market dynamics. With Red Sea corridor modernisation and blockchain-driven customs clearance pilots, freight flow visibility and efficiency have been improving. The government’s digital freight platform ‘Logisti’ also enables SME shippers to integrate seamlessly with larger freight forwarders, closing the technology gap.
Base Year
Historical Period
Forecast Period
Compound Annual Growth Rate
5.5%
Value in USD Billion
2026-2035
*this image is indicative*
Saudi Arabia's aim to become a global logistics nexus is translating into mega-infrastructure upgrades. The country has launched 59 logistics centres under Vision 2030, with major facilities in Jeddah, Dammam, and Madinah. The Landbridge rail project, a USD 7 billion endeavour, will connect Jeddah Port to Riyadh Dry Port, significantly reducing cross-country freight time, impacting the Saudi Arabia freight and logistics market development. This intermodal spine is fast attracting private 3PL players, reshaping how freight is routed internally and for regional exports.
The rise of temperature-sensitive pharmaceuticals and perishables is boosting demand in the Saudi Arabia freight and logistics market. The integration of IoT sensors into reefer fleets has become common practice, particularly in Al Khobar and Yanbu, allowing 24/7 monitoring and insurance-linked risk assessment for B2B perishables shipments. Moreover, AI-driven control towers are now being deployed to predict route disruptions and initiate contingency responses in real time. Companies are increasingly adopting dynamic routing and smart inventory systems to maintain optimal temperatures and reduce spoilage across longer hauls.
The Red Sea and Gulf ports are undergoing an automation surge, accelerating the Saudi Arabia freight and logistics market value. In 2022, Mawani signed partnerships with DP World for deploying new fully integrated smart logistics park Jeddah ports. The deal includes over SAR 500M (USD 133 million) worth of investment from DP World, making it the fifth deal following a series of agreements signed with companies in maritime transport and logistics including Maersk, Bahri and CMA CGM. Moreover, with the goal of providing more than 250 e-services at Saudi ports and enhancing the country's worldwide logistics presence, Mawani, launched the Port Community System (PCS) under the "Logisti" framework. The automation reduces wait times and improves fleet rotation, creating value for exporters in petrochemicals and manufacturing supply chains targeting Europe and Asia.
The rapid rise in e-commerce has reshaped Saudi Arabia freight and logistics market dynamics. Companies like SPL (Saudi Post Logistics) are deploying electric cargo bikes and AI-powered delivery bots in Riyadh’s business zones. Logistics players are integrating real-time parcel tracking and customer time-slot selection systems, an essential factor for B2B e-commerce sellers targeting high delivery SLA compliance. Startups like BARQ are also piloting autonomous delivery pods in tech parks. Meanwhile, to further promote imports and trade with the three continents that connect the Kingdom, Naqel has unleashed fresh investments totalling over SR200 million (USD 53 million) in the western province of Saudi Arabia in line with the Kingdom's Vision 2030 strategy.
Digital transformation in customs is redefining cross-border freight and logistics demand in Saudi Arabia. In 2024, ZATCA (Zakat, Tax and Customs Authority) launched its Special Integrated Logistics zones, integrating e-clearance, blockchain document verification, and AI-powered risk profiling. This move has reduced customs clearance times at major ports like King Abdulaziz Port. DHL and Bahri are now connected to this platform, enabling smoother B2B imports and exports. Additionally, the adoption of e-CMR (electronic consignment notes) has streamlined overland trade with the UAE and Jordan. Such technological upgrades are directly boosting freight velocity and reducing compliance friction for manufacturers and exporters operating under tight delivery cycles.
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
Key Insight: While freight transport continues to dominate the Saudi Arabia freight and logistics market, the surge in the Courier, Express and Parcel (CEP) segment fuelled by retail export and SME fulfilment. Warehousing is evolving with automation and temperature-controlled units, freight forwarding is digitalising through smart contracts, and specialised logistics like pharma and heavy cargo are pushing demand under the “Others” category. Each function benefits from tech-led integration and public-private initiatives improving cross-border and last-mile capabilities.
Market Breakup by End Use
Key Insight: While manufacturing remains dominant in the Saudi Arabia freight and logistics market, healthcare's precision demands are reshaping B2B supply solutions. Food and beverage logistics are growing with temperature-tracked shipping; construction and oil & gas rely on oversized freight services. Retail and IT hardware need faster CEP. Automotive and chemicals drive multi-temperature and hazardous cargo handling. All end uses are increasingly shaped by digital visibility and cost-efficiency demands.
By Function, Freight Transport Registers the Largest Share of the Market
Freight transport continues to be the dominant segment in the Saudi Arabia freight and logistics market, driven by land and sea corridors. As per industry reports, nearly 70% of goods entering the Gulf Cooperation Council (GCC) pass through Saudi Arabia. New expressways linking Riyadh, Jeddah, and Dammam are reducing congestion and transit delays. The National Transport and Logistics Strategy (NTLS) is reshaping the sector with targeted rail expansions and dual-use road corridors for freight. Major fleet upgrades by companies like Bahri are supporting integrated sea-land-air movement, enhancing B2B shipment reliability across the GCC.
CEP services are witnessing explosive growth in the Saudi Arabia freight and logistics market, due to rising SME exports and B2B e-commerce integration. According to the Transport General Authority (TGA), parcel deliveries in Saudi Arabia have recorded over 16.5 million shipments made during Ramadan, led by retailers exporting via cross-border e-marketplaces. Startups like Mkhdoom and BARQ are using smart lockers, route-optimised drones, and AI bots for enhanced delivery productivity. The government’s e-commerce enablement programmes, including fulfilment hub subsidies and CEP tax incentives, are encouraging rapid expansion in business-focused CEP infrastructure.
By End Use, the Manufacturing Segment Accounts for the Dominant Market Share
Saudi Arabia's industrial base is expanding rapidly under the NIDLP, driving freight and logistics demand for machinery, metals, and components. Manufacturing firms require just-in-time freight solutions and bonded warehousing support for both raw material import and final goods export. Riyadh and Jubail logistics corridors are catering to advanced manufacturing clusters. Firms such as SABIC and Alfanar are leading this shift by demanding tailored multimodal freight offerings that match their regional and global supply chain patterns.
Healthcare is gaining momentum in the Saudi Arabia freight and logistics market, as new hospitals and pharma manufacturing hubs emerge. Cold chain reliability, real-time inventory visibility, and regulatory compliance have become the industry norms. With the rollout of Vision 2030 health reforms, freight players are offering temperature-assured solutions. Companies like Tamer Group have adopted robotic warehousing and blockchain-certified delivery for controlled drugs. This fast-paced growth is further driven by increased international vaccine imports and the domestic production of generics.
The Saudi Arabia freight and logistics market players are focusing on AI-powered route planning, modular warehousing, and sector-specific logistics, especially for pharma, cold chain, and e-commerce. The trend of logistics-as-a-service is gaining traction, allowing SMEs to outsource entire supply chains via smart platforms. Public-private tie-ups are opening up fresh opportunities around bonded zones and rail freight integration. B2B players are moving towards predictive analytics to enhance asset utilisation, while also investing in green fleet conversions.
Moreover, international firms are consolidating their presence via local partnerships, while Saudi Arabia freight and logistics companies are increasingly expanding into GCC and African corridors. Innovations like driverless delivery trials, hydrogen-fuelled trucks, and vertical warehousing are some of the key trends that companies are following to gain a competitive edge. With evolving compliance standards and cross-border trade routes, logistics providers that balance digital scale with sectoral depth are likely to lead the next phase of growth.
Kuehne + Nagel Management AG is a prominent logistics company that was founded in 1890. It is a leader in air freight and sea freight forwarding, with its footprint in nearly 100 countries. Headquartered in Switzerland, the company collaborates with players in different sectors to develop advanced and flexible solutions that can drive the success of both SMEs and large businesses.
Wared Logistics is a company that offers container importation, full-service transportation networks, brokerage hubs, and logistics hubs across MENA. It is a joint venture between prominent logistics companies, Construction Products Holding Company (CPC) and Zahid Group Holding. The company aims to develop innovative services and solutions that can enhance the efficiency of logistics and distribution channels.
Mosanada Logistics Services, established in 2010, is a part of Mohamed Yousuf Naghi & Brothers Group. It is headquartered in Jeddah, Saudi Arabia, and has emerged as a leading logistics company in the Middle East. Some of the sectors the company serves are food and beverages, oil, personal care and beauty, oil, and batteries, among others.
Established in 1995 and headquartered in Bonn, Germany, Deutsche Post AG operates in Saudi Arabia through DHL. The company offers freight forwarding, express delivery, and supply chain management, with special focus on healthcare logistics and green supply chain solutions. DHL’s Riyadh distribution hub features automated parcel sorting and real-time cargo tracking integrated with customs APIs.
*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.*
Other key players in the market are UPS Express Private Limited, The Aramex Group, FedEx Corporation, Agility Public Warehousing Company K.S.C.P., Zajil Express, Alma Express, SMSA Express Transportation Company Ltd., Saudi Logistics Services Company (SAL), Saudi Post Corporation, and United Warehouse Co. Ltd., among others.
Explore the latest trends shaping the Saudi Arabia Freight and Logistics Market 2026-2035 with our in-depth report. Gain strategic insights, future forecasts, and key market developments that can help you stay competitive. Download a free sample report or contact our team for customized consultation on Saudi Arabia Freight and Logistics Market trends 2026.
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In 2025, the Saudi Arabia freight and logistics 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.
Key strategies driving the market include diversifying into tech-integrated warehousing, forming PPPs for last-mile solutions, onboarding SMEs via digital platforms, and aligning operations with Vision 2030’s multimodal and green logistics mandates.
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 major players in the market are Kuehne + Nagel Management AG, Deutsche Post AG, UPS Express Private Limited, The Aramex Group, 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.
The key challenges are high fleet operating costs, customs delays at smaller ports, technology fragmentation across SMEs, and a shortage of local skilled workforce for logistics tech implementation.
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:
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| Breakup by Function |
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| Breakup by End Use |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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