KSA Logistics industry Research Report: Ken Research

Logistics industry in KSA is one of the major logistics markets in the world after UAE and is expected to be the next transhipment hub for Asian, African and European countries, given the favorable location of KSA. Growth in the industry has been stimulated due to the high ease of doing business and ranked 89th position in the World.

The industry is dominated by Sea and land freight Movements considering the strong position in Oil Exports and import Dependency for all the Essential Products too. The country has strong trade relations with Asian countries, European countries, and the US. Land freight is usually common with UAE, Bahrain, Jordan, and Egypt. Air freight is quite expensive than any other Mode and is usually used for Express Shipments. The KSA also has a strong warehousing market segment where the real estate players are leasing out their space to logistics companies and Captive players for longer durations. Warehouses are concentrated in areas of Riyadh, Jeddah, Dammam, Al Khobar due to the high population and presence of Seaports. The Courier, Express, and Parcel market is driven by growth in Last-Mile deliveries and the E-Commerce segment in the country.

Challenges for Logistics Market in KSA

Over-dependence on Imports and Oil Export Earnings: Levels of domestic manufacturing in the country have remained very low since 2009. Hence, the country is largely dependent upon Imports for essential commodities, food products, Automotives, and more. The country is largely dependent upon Oil Export earnings and is providing 100% FDI in retail, Industrial segments to promote Non-Oil Sectors under Vision 2030.

Dependence on Expats for Labor: The Lack of Skilled local Labor in Saudi Arabia elevated the dependency on Expats. Due to more Expat population and lesser minimum wage set by the Labor Ministry laws of Saudi Arabia, the companies prefer to work with Expats at a lesser salary in Saudi Arabia logistics Market.

Limited Progress in E-Payment Gateways: The sophistication level in the country’s e-payment gateways have been well below as compared to more developed international retail markets over the period. Cash on delivery has been the most preferred mode of payment for online shipments in KSA over the past few years.

Congestion at Ports: Uncertainties within the maritime transport industry regarding safety, security, and cyber-security incidents is still a hindrance. Although the Government is trying to automate the Process by Introducing Export, Import Platforms which has reduced a lot of waiting time, congestion and Long procedures regarding custom clearance on the Ports.

Competition Overview

The competition in the Logistics space in KSA can be divided on the basis of different service segments including Freight Forwarding, Contract Logistics (Warehousing) and Express Delivery.

Domestic and International players such as Bahri logistics, Kanoo Terminal, Kuehne + Nagel, DB Schenker, DHL, Agility were identified to be dominant when it comes to Air Freight and Sea Freight, as they are associated with some big Groups/Conglomerates or have a strong brand name in the Global Market for their quality services.  Local Domestic Transporters dominate the Road freight Market on the basis of type of fleets, number of trucks, Prices, delivery periods and more While the International Express market in KSA is concentrated among majorly global players such as DHL, FedEx and more, the Domestic Express market is more fragmented but is strongly dominated by NAQEL express, SMSA Express, Saudi Post, ESNAD express and more in Saudi Arabia logistics Market.

Future Growth

The logistics sector in KSA is expected to grow in future with a dip in 2020 due to lockdown for few days that disrupted the Imports and Export Movements by all Modes which is expected to revie back in 2021. Logistics Companies are growing and updating new technologies such as RFID tags, WMS, Fleet Management Softwares, Blockchain, and ASRS at nominal prices to win their clients by providing quality services and improving customer experience and enhance service quality. The pharma logistics segment and the e-commerce logistics segment are expected to drive growth in the future, given the expected increase in medical products requirements post COVID-19 and the growing penetration of e-commerce in the country.

Key Target Audience: –

3PL Logistics Companies

Integrated Logistics Companies

E-Commerce Companies

Oil & Gas Companies

Retail Companies

Pharmaceutical Companies

Logistics/Supply Chain Industry Associations

Time Period Captured in the Report:

Historical: 2015 to 2019

Future: 2019 to 2025

Companies Mentioned:

Bahri logistics

Saudi Post

NAQEL Express

Kuehne Nagel

Almajdouie logistics

DHL Express

Fedex Express

Al Ayed Transport

SMSA Express

Tamer logistics

BAFCO shipping and Logistics

DB Schenker


JAS Worldwide

Kanoo Terminal Services

LSC warehousing and logistics

Hala Supply Chain

Namma Cargo

Wared logistics

Al Rashed transport


Kerry logistics

Mubarrad transport

Hellman logistics

OCSCL Shipping and Logistics

Al karsf

SMT logistics

Saudi Lana logistics

Fourwinds logistics


NTF cargo

Alpha Cargo


Platinum Shipping and Logistics

Key Topics Covered in the Report: –

Saudi Arabia logistics Market size by Revenues

Saudi Arabia logistics Market Segmentation By type of Service (Freight Forwarding, warehousing, Courier, Express and parcel Market and Value added services) By Revenues

Market Segmentation by Modes of Freight (Including Domestic and International Cargo traveled for each Mode of freight, FTK traveled, Price per ton per kilometer)

The market size of Warehousing (Revenue, Total warehousing Space Average Occupancy, Revenues, Average Price per sqm per month)

Warehousing Space by Type of Entity (Real estate companies, Logistics Companies, Captive Companies)

Warehousing Space by Type of Warehouses (Industrial/ Retail, Agricultural, Cold Storages, ICD/CFS)

Courier, Express and Parcel Market (Domestic/ International Revenues, Average Price per Domestic and International Shipments, Total Domestic/ International Shipments)

E-commerce logistics Market size in Saudi Arabia

Top Companies dealing in each Service and Sub Service (Land freight, Sea freight, Airfreight By Volume, warehousing companies by warehousing Space, Express companies by International/ Domestic Revenues)

Top Companies by revenues dealing in each Vertical (E-commerce, Retail, Oil, and Gas and Pharma logistics)

Market Share of Logistics Companies in KSA by Service Mix and By Each Industry Verticals

Competition Analysis of Major Logistics Players in KSA by Revenues

Competition Analysis of Major Logistics Players in KSA ( including Volume, Average warehousing Space, Fleets, Average Occupancy rate,  Network, Client Retention, Industries catered, Services offered, Technology, Certifications, Strength)

For More Information On The Research Report, refer to below link: –

Future Of KSA Logistics industry

Related Reports by Ken Research: –

UAE Cold Chain Market Outlook to 2025 – By Cold Storage (Ambient, Chilled and Frozen Warehousing) and Cold Transport (Land, Sea and Air), By End User (Dairy Products, Meat and Seafood, Pharmaceuticals, Fruits and Vegetables and Others) and By Ownership (Integrated and Contract Logistics)

Competition Benchmarking in UAE Logistics Market Outlook to 2025: Driven by High Ease of Doing Business, Technology Enhancement and Status of UAE as a Trans-shipment Hub

Saudi Arabia Dry Logistics and Warehousing Market Outlook to 2025 – Warehousing Automation and Investment within Transport Infrastructure to Drive Market Revenue)

Contact Us: –
Ken Research
Ankur Gupta, Head Marketing & Communications
[email protected]

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