According to Bloomberg’s article published on October 24, 2022, Saudi Arabia wants to use 10 billion riyals ($2.7 billion) to lure global logistics firms to the kingdom, with more special economic zones and other investment incentives aimed at further cementing the Persian Gulf region as a hub of global trade.
Crown Prince Mohammed Bin Salman announced the funding Sunday as part of Saudi Arabia’s Global Supply Chain Resilience Initiative, which aims to attract 40 billion riyals of investments into the country.
Saudi Arabia wants to become one of the 15 largest economies globally by 2030, up from 19th in a Bloomberg Economics ranking based on 2021 GDP data.
The initiative intends to “leverage the Kingdom’s resources, infrastructure and location to bring greater resilience to economies and companies across Europe, the Americas and Asia, while further enhancing Saudi Arabia’s position in the global economy,” according to a statement on the state-run Saudi Press Agency.
Regional Hub
Saudi Arabia wants to position itself as a regional hub for transport and logistics, digital infrastructure, and low-carbon energy sources including solar power and hydrogen exports.
The UAE’s DP World — a port operator that handles about 10% of global trade — is already a major logistics player based in the region.
The Saudi plan is geared for investment in areas such as manufacturing of green metals, green hydrogen production devices, and advanced recycling industries.
To do so, the kingdom is planning on “establishing a number of special economic zones in the near future, through which an attractive environment can be created for investors, in addition to attracting the regional headquarters of international companies to the Kingdom.”
Why Saudi Arabia? “It provides a resilient economy which is the largest in the Middle East and the fastest growing in the G20, a strategic location at the heart of three continents and a source of key raw materials for manufacturing. Saudi Arabia also offers access to oil, gas, electricity, renewable energy and human resources at competitive costs,” according to the statement.
