What is the Future of Logistics in Saudi Arabia and the Whole World After Pandemic?

Saudi Arabia pays undivided attention to the development and sustainability of logistics services, a major focus contributing to reinvigorating the economy of any country. Logistic services symbolize an encouraging investment element unlocking vibrant business opportunities for foreign investors and aiming to realize one of the most significant pillars of the strategic Saudi Vision 2030 represented in diversifying non-oil revenue and increasing the logistic exports from 15 to 50 percent.

Amid the COVID-19 pandemic leaving its fingerprints in most sectors, the logistic sector has witnessed a disruption in the supply chain, which in return influenced the global GDP; however, this disruption has enabled us to see a positive change in consumers’ attitudes who unprecedentedly moved towards online shopping due to the lockdown, leading to the decrease in market sale in reality. The popularity of online shopping spiked and has eventually become the ultimate alternative for all. In 2020, the number of online shoppers pointed to be over 2Bn persons worldwide. Estimations anticipate having this number increase by 2024, making the digital transformation one of the most highly important pillars for building the global economy.

Digital Transformation and Future of Logistic Services Worldwide

In efforts towards realizing the best services and covering a larger number of orders, countries have expedited digitalising logistic services by using robots in warehouses, employing UAVs for making deliveries, and relying on the Internet of Things (IoT) in reinforcing the tracking and delivery of shipments together with the ability to fully control supply chain via an integrated automated system capable of evading possible mistakes and functioning more efficiently and effectively. Furthermore, blockchain technology has been utilized in creating a secure data system aiding in accelerating operations and reducing risks. The first shipment in Saudi Arabia launched by using this technique was in King Abdulaziz Harbor in Dammam to Rotterdam in Dutch on May 13, 2019.

How did the Logistic Sector leap Nationwide?

Since the unveiling of Vision 2030, a myriad of development programs and initiatives have made a giant leap in the diversification of the economic revenue to realize Saudi Arabia as a global logistic hub leveraging its unique location situated among three continents (Asia, Africa, and Europe) which enables the exchange and trade and links markets of multiple countries with more than 6Mn population, all to recognize Saudi Arabia as an immense portal for supply chain for the three continents. Saudi Arabia spared no efforts in improving and regulating legislations for the logistic sector by bringing to fruition: the digital transformation to enhance the efficiency and services of logistics under a digitalized, logistics, and unified platform, mitigating custom clearance from 288 hours to 9 hours, creating five shipping lines to connect the three continents, and ranking Saudi Arabia as the first in the Middle East to have the greatest capacity for freight cargo through the Saudi naval fleet in 2020.

“Logistic License” A Passway Towards Universality

The “Logistic License” has been issued to enhance the position of Saudi Arabia as an international logistic hub. Such license aims at increasing the efficiency performance and implementing the best international criteria to enable Saudi Arabia to become an outlet for international companies to access the Saudi logistic sector. “Salasa” had the opportunity to obtain this license since it is a prominent provider of logistic services in its sector along with being a manager for online shops within 32 local and international companies to boost Saudi Arabia’s ranking to become one of the best 10 countries around the world in the logistic performance index by 2030. Global estimations indicate that the market value of logistic services may reach more than USD 15 Trn by 2024.

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