07 — Sector
Logistics & Supply Chain
The National Transport and Logistics Strategy targets a regional logistics hub, and 2026 has shown the value of being able to move goods through both the Gulf and the Red Sea.
Key figures
- Container throughput at Saudi ports in 2025, up 10.6%
- 8.32m TEU1
- World Bank Logistics Performance Index 2023, up from 55th in 2018; the latest edition published
- 38th2
- Corporate income tax for 50 years in the Special Integrated Logistics Zone
- 0%3
- Mawani, via Argaam, January 2026
- World Bank, 2023
- ZATCA guideline, December 2023
What is driving demand
- Ports, rail and logistics zones, with 59 logistics centres planned
- E-commerce and last-mile growth
- Red Sea routing and the East–West corridor
- Special economic and logistics zones with tax and customs incentives
Who buys
- Ports, rail and logistics-zone operators
- Manufacturers and retailers building distribution
- Government and PPP transport projects
Typical entry route
Logistics providers commonly partner with a Saudi operator or set up in a logistics or special economic zone, using its incentives and customs benefits while building local capability.
Request a sector briefingWatch for
- Hormuz disruption since 28 February 2026, congestion at Red Sea ports and higher war-risk insurance
- Licensing by activity: the Transport General Authority for land freight and forwarding, Mawani for ports, GACA for air cargo, and ZATCA for customs and bonded zones
- Saudization of operational roles
FAQ
Common questions
What incentives do logistics zones offer?
The Special Integrated Logistics Zone near King Khalid International Airport offers 0% income tax for 50 years; the special economic zones offer 5% for up to 20 years on qualifying activities.
Is 100% foreign ownership allowed in logistics?
For most logistics activities, including freight forwarding, yes, subject to Ministry of Investment registration and a licence from the Transport General Authority. A few transport activities remain on the Ministry’s excluded list, so we check your exact activity codes against the current list before you commit.
How has the 2026 conflict affected logistics?
Since the conflict began on 28 February 2026, commercial traffic through the Strait of Hormuz has fallen sharply. That cut volumes at Gulf-coast ports such as Dammam and Jubail and raised war-risk insurance, while Red Sea ports, Jeddah above all, absorbed rerouted cargo and congestion. An East–West pipeline pumping station and Red Sea facilities have also been hit. As of September 2026 the conflict is unresolved, so dual-coast routing and buffer stock belong in any entry case.
Sources for this page: Mawani via Argaam (January 2026); World Bank LPI 2023; ZATCA (December 2023); Transport General Authority; Al Jazeera, Hormuz traffic (August 2026); Bloomberg, attacks on Saudi energy sites (September 2026).
Reference guides
The detail behind the decision.
Saudi Arabia’s industrial zones: a map and a guide to choosing one
More than fifty industrial cities, special economic zones and hubs, run by four different authorities with four different rulebooks. Where they are, what each offers, and how to choose.
9 min readReadSaudi Arabia’s trade agreements: where a Saudi-made product goes duty-free
Saudi Arabia negotiates trade deals through the GCC. What is in force, what has just been concluded, including the UK deal of May 2026, and the rules of origin that decide whether you benefit.
8 min readReadLocal content and local manufacturing: how the numbers work
Local content can outweigh a 10% price gap in a Saudi tender. How it is measured, the exact evaluation formula with a calculator, and the incentives that make manufacturing in the Kingdom pay.
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