Saudi arabia Country Commercial Guide
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Transport and Logistics Services Sector
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Key Players in the Saudi Arabia Transport and Logistics Services Sector 

General:

  • Ministry of Transport and Logistics Services: The Ministry oversees legislation for all transport sectors, including air, land, marine, public transport, and logistics.
  • Transport General Authority – The Transport General Authority oversees land, rail, and maritime transport under the Ministry of Transport and Logistic Services (MoTLS).

Aviation:

  • General Authority Civil Aviation (GACA): GACA provides civil air regulations and oversees air transport in coordination with the International Civil Aviation Organization.
  • Matarat Holding Company: Matarat is a state-owned entity managing all civil airports visa subsidiaries like Riyadh, Jeddah, and Dammam Airports Companies.

Maritime & Ports:

  • Saudi Ports Authority (Mawani) – Mawani is responsible for the operation, management, development, and regulation of the Kingdom’s sea ports (e.g., Jeddah, Dammam, Yanbu).

Rail:

  • Saudi Arabia Railways (SAR) – SAR was established in 2021 to consolidate former rail organizations and manage all freight and passenger networks.

Roads & Public Transport:

  • Roads General Authority – The Roads General Authority is responsible for the planning, construction, operation, and maintenance of roads across the Kingdom.
  • Public Transport Authority – The Public Transport Authority regulates public transit services, including local buses, metro systems, and intercity transport.
     

Other Related Entities:

  • Saudi Standards Metrology and Quality Organization (SASO): SASO is responsible for issuing Saudi standards and conformity assessments consistent with international and World Trade Organizations (WTO) standards while also following Islamic Sharia and the Kingdom’s interests.
  • Saudi Authority for Industrial Cities and Technology Zones (MODON): Modon oversees 36 industrial cities in varying stages of development across the Kingdom, in addition to private industrial cities and complexes. Modon has so far developed 200 million square meters of industrial lands. 
  • Royal Commission for Riyadh (RCRC): RCRC leads planning and development for the City of Riyadh, including transportation networks.
  • National Industrial Development and Logistics Program (NIDLP): NIDLP is one of Saudi Arabia’s Vision 2030 initiatives aimed at transforming the Kingdom into a global hub for industry, mining, energy, and logistics.
  • The Royal Commission for Makkah City and Holy Sites - Responsible for managing and improving services and transportation infrastructure of Makkah and the holy sites in the Kingdom, including development of the metro network in the holy city.

 

Doing Business in the Saudi Arabia Transportation and Logistics Sector

Although U.S. exporters are not required to appoint a local Saudi agent or distributor to sell to Saudi companies, it is strongly recommended that companies consider partnering with a local company for the purposes of monitoring business opportunities, navigating import and standard testing regulations, and identifying public sector sales and contract opportunities. Transportation projects and investments are funded through a mixture of public and private spending. While projects fall into airports, railways, ports and roads, a bulk of spending to date has been on rail. The Kingdom’s plans aim to bolster the transportation and logistics sector through local manufacturing for bus, train and metro components, as well as new local airlines and support for Saudi port infrastructure.

Saudi Arabia’s Procurement Law regulates all government procurement, including for transportation and logistics projects. The Ministry of Finance is the overarching authority for this law and its implementation and administers the procurement portal, Etimad (www.etimad.sa), which serves as a centralized repository for all government tenders.

Since the Transport and Logistics sector is a broad cross-cutting sector, U.S. companies may find Transport-related tenders on a number of other government and non-government procurement portals and websites including:

Trends/Opportunities 

Transportation continues to be a priority sector as the Kingdom pursues its Vision 2030 economic diversification initiative and seeks to transform the country into a regional and international logistical hub linking three continents, as well as a hub for tourism and aviation. A total of $11.2 has been allocated for 2025. The government is particularly emphasizing digital infrastructure, logistics, airport and port upgrades, metro network extensions, enhancing public bus networks, and modernization of facilities serving Hajj pilgrims.

Key projects underway in 2025 include:

  • King Salman International Airport is a $33 billion project to develop a new airport in Riyadh including six parallel runways, cargo handling capacity up to 185 million travelers, and 3.5 million tons annually by 2050. New travel lounges will also be launched at Al Jawf International Airport, Al Baha International Airport, and King Abdulaziz International Airport South Terminal.
  • New national flagship carrier Riyadh Air will commence operation, and Saudi Arabia plans to license a new carrier out of Dammam. 
  • The Saudi Landbridge Project, led by Saudi Railway Company (SAR) will develop over 1,500km of new and upgraded rail to connect Riyadh, Jeddah, Dammam, and key ports. A lead design consultancy tender has been issued for all phases prior to construction.
  • NEOM’s LINE development began vertical construction in 2025 and will include high-speed rail, eVTOL networks, and e-mobility as part of a smart city transportation ecosystem.
  • Continued rollout and operation of public transport networks across several regions.
  • Launch of six new logistics zones at various Saudi ports to strengthen supply chain infrastructure.


Saudi Arabia’s freight and logistics market is valued at $145 billion in 2025 and expected to reach $154 billion by 2026. Development of the transportation sector is driven by the National Transport & Logistics Strategy, which aims to reach a capacity of over 40 million containers annually and improve the Kingdom’s logistics performance index to be among the top ten worldwide. The strategy also prioritizes rail connection with other Gulf states, as well as environmental preservation and a reduction in fuel consumption of 25 percent as part of Saudi Arabia’s roadmap to net zero emissions by 2060. 

In 2025, Saudi Arabia’s National Transport and Logistics Strategy (NTLS) made significant progress toward its Vision 2030 goals. Key developments included the launch of a Digitalization & Technical Processing Center and a unified documentation platform to enhance customs efficiency at sea and land ports The Kingdom continues to expand its rail network; in 2025, it announced projects to grow the network by over 8,000 km, including major projects like the Jeddah–Riyadh Landbridge and the Jubail–Dammam freight line. Eighteen new logistics zones have been announced, with a target of 59 zones by 2030, and a new logistics park was approved at King Abdul Aziz Port. Road transport modernization efforts are also underway, focusing on smart technologies and sustainability. Backed by a $267 billion logistics investment plan, these initiatives aim to establish Saudi Arabia as a global logistics hub.

The Kingdom is increasingly opening the transportation and logistics sector for private sector participation through regulatory reform. As the e-commerce industry, maritime sector, transportation infrastructure projects and technology develop rapidly, the Kingdom is emerging as a regional logistics hub. Many international companies have entered into joint ventures with local companies as a strategy to submit successful proposals and win bids. Gaps in Saudi Arabia’s logistics landscape are expected to be filled by new entrants. 

Key within Saudi Arabia’s Vision 2030 are its “giga-projects,” which are being led by a series of companies backed by the Public Investment Fund (PIF), the Kingdom’s sovereign wealth fund. These giga-projects include NEOM, Red Sea Global, Qiddiya, Diriyah, and others. Spanning multiple sectors, the giga-projects aim, among other things, to catalyze Saudi Arabia’s nascent tourism industry and spur construction of new ports and logistics infrastructure on a massive scale.

The construction of “economic cities” or Special Economic Zones (SEZs) across the country is central to development plans. These cities are planned as hubs for the petrochemical, mining, and logistics industries, as well as for a knowledge-based economy. The first wave of SEZs includes five different zones, each designed to accelerate the growth of specific key sectors corresponding to the location.

Leading Sub-sectors

The National Transport and Logistics Strategy features 92 initiatives and 378 projects with an estimated capital and operating cost of $267 billion through 2030. King Salman International Airport has a cost of $33 billion alone, and the Saudi Landbridge rail link between the east and west coasts is estimated to cost $7 billion. Currently the Kingdom’s transportation and logistics network includes:

  • Railway: 4,5005,500km of rail with an annual capacity of 14 million tons 
  • Roads: 73,000km of national roads 
  • Airports: 29 airports (13 international) with an annual capacity of 100 million passengers 
  • Ports: 10 ports for non-oil trade with a capacity of 280 million tons annually

Rail

As part of Saudi Arabian Railways (SAR) expansion program, the Kingdom has introduced plans calling for development of the east-west Saudi Land Bridge railway, estimated at $7 billion, as well as two new rail corridors, the GCC Railway Mainline in the east and the Yanbu-Jeddah Railway in the west. Saudi Arabia also plans to integrate modern technology and advanced technical solutions to reduce rail’s environmental impact. All six GCC member states are responsible for developing the length of the rail network falling within its territory and bearing the proportionate project cost. The GCC Railway will connect the six GCC member states with 2,200km of railway track running through key cities in each GCC nation. Although NEOM’s LINE has been reduced in size, the now 2.4km long structure will house a vertically-built city. To meet the needs of this car-less city, the Spine will be an ultra-high-speed transit system complete with utility corridors underneath the city, providing stops within NEOM and at the NEOM International Airport. Opportunities exist for U.S. companies with expertise in meeting the technological demands of Saudi Arabia’s growing passenger and freight rail

Automotive

Saudi Arabia is the 6th largest market for U.S. automakers by value and the fifth largest market by number of units. The total value of U.S. vehicles exported to Saudi Arabia in 2024 was $1.76 billion, making it the largest market for U.S. vehicles in the Middle East. From 2023-2025, the United States remained a top supplier of automotives to Saudi Arabia, alongside Japan, South Korea, and China. In 2024, the U.S. exported approximately $2.18 billion worth of light-duty vehicles and $103.5 million in automotive parts to Saudi Arabia.

Toyota holds 26  percent of the Saudi auto market share, while Hyundai is around 15 percent, with GM and Ford coming in at 5 percent each. Sales of Chinese cars are increasing steadily. With the introduction of value added tax (VAT) in 2018, demand for smaller vehicles and second has increased significantly, however SUVs remain popular, constituting 40 percent of all passenger vehicles. The 2018 removal of the ban on female drivers has significantly boosted new vehicle sales in Saudi Arabia, with growth projected at 9 percent annually through 2025. This landmark reform unlocked previously untapped market potential, with an estimated 2.5 million women to be driving in 2025 fueling demand not only for vehicles but also for a range of related services.

Saudi Arabia is actively prioritizing electric vehicles (EVs) in public transportation systems and aims for electric vehicles to represent 30 percent of Riyadh’s total fleet by 2030 as part of broader Vision 2030 sustainability goals. To this end, the government-backed Electric Vehicle Infrastructure Company (EVIC/EVIQ) plans to install 5,000 fast-charging stations across Saudi Arabia by 2030. Saudi Arabia also has ambitious EV manufacturing plans with designs to host four domestic “original equipment manufacturers” (OEMs), producing 500,000 vehicles annually by 2034. The Saudi National Industries Development Center (NIDC) automotive team is leading the country’s efforts to develop a sustainable automotive ecosystem in the Kingdom. 

Lucid Motors, a California-based EV manufacturer, is one of the biggest U.S. investments by Saudi Arabia’s Public Investment Fund (PIF), targeting peak production of up to 155,000 cars a year. Lucid rolled out its first fully Saudi-assembled electric car in September 2023 from its plant near Jeddah. Another auto manufacturer – Ceer Motors, which launched in 2022 as a joint venture between PIF and Hon Hai Precision Industry Co. (Foxconn) – is Saudi Arabia’s first national automotive brand and aims to design, manufacture, and sell a new portfolio of innovative EVs. Ceer is expected to launch its first vehicles in late 2025, with production beginning in late 2026 through partnerships with established global technology and battery providers. The Ministry of Industry and Mineral Resources reports that there are 160 factories producing vehicles and spare parts currently operating in the Kingdom. The Automotive Development Program and Automotive Development Policy aim to provide investment opportunities and support SMEs to establish supply chains and value-added in the automotive and commercial truck industry.

Roads 

Saudi Arabia’s Road network is well developed, yet the Kingdom is actively pursuing next-generation technologies to address growing congestion, unsafe driving, and traffic fatalities. Key focus areas include smart parking, road tolling, and intelligent transport systems. Major projects like NEOM’s Line will feature advanced transportation networks, including high-speed rail and electric vehicle infrastructure. Additionally, major projects such as Red Sea Global, Diriyah, and Al Ula present significant opportunities for deploying smart transportation solutions.

Ports

As part of its National Transportation & Logistics Strategy, the Kingdom is actively developing its port infrastructure. Through a focus on ‘smart ports’, MAWANI aims to advance the Kingdom’s goals as a logistics hub, upgrading existing ports, improving capacity to 40 million containers annually and implementing state-of-the-art-technologies. This includes investing in associated value chains, developing port infrastructure and integrated logistics zones, and integrating with existing shipping routes and rail/road networks. Ports of particular interest include the Jeddah Islamic Port on the Red Sea and the King Salman International Complex for Maritime Industries and Services in the East. The Kingdom is also prioritizing port technologies with minimal environmental impact.

Logistics

In alignment with Saudi Arabia’s National Transport and Logistics Strategy, the Kingdom has established five Special Economic Zones (SEZs), strategically located across key regions: the Riyadh Integrated Special Logistics Zone adjacent to King Khalid International Airport; Jazan SEZ in the south, focused on industrial processing and logistics; Ras Al-Khair SEZ in the east, centered on maritime industries; King Abdullah Economic City (KAEC) SEZ on the Red Sea coast, targeting advanced manufacturing and logistics; and the Riyadh Cloud Computing SEZ, enabling nationwide digital infrastructure growth. In 2025, Saudi Arabia implemented key regulatory refinements to enhance the competitiveness of its SEZs, introducing investor-friendly frameworks, faster approval processes, and expanded infrastructure across logistics, manufacturing, digital, and maritime sectors. These zones play a central role in the Kingdom’s National Transport and Logistics Strategy (NTLS) and Vision 2030, offering significant investment opportunities. Each zone leverages strategic locations and infrastructure to attract cutting-edge industries aligned with Vision 2030’s economic diversification goals.

The first SEZ located in Riyadh launched as a Special Integrated Logistics Zone or SILZ in October 2022. Located directly adjacent to King Khalid International Airport (KKIA), the zone covers over 32 million square feet. Its first occupant, Apple, utilizes the zone as a regional distribution center and may expand its operations to include repair work and light manufacturing. The SILZ offers special regulations and incentives to foreign and domestic companies. Goods inside the SILZ are exempt from Saudi Arabia’s 15 percent value added tax and are under customs suspension. Firms operating inside the SILZ also enjoy a five-year delay on required quotas for Saudi workers, known as “Saudization” quotas.

Future Mobility

Saudi Arabia is accelerating its transition to clean and smart transportation by investing in electric vehicles (EVs), hydrogen-powered mobility, autonomous vehicles, advanced traffic management, and digital payment technologies. As of January 2025, the Riyadh Metro is the largest in the Middle East and the world’s longest fully operational driverless train system. The six-line network spans 176km with 85 stations. In its early months, it served 18 million passengers and is projected to carry up to 3.6 million riders daily. The metro aims to cut traffic congestion by 30 percent and boost public transport usage from 1 percent to 15 percent by 2030. 

Riyadh plans to expand its metro with the addition of Line 7, a 65 km route featuring 19 stations that will connect King Khalid International Airport to Qiddiya via key urban hubs such as Misk City, Diriyah Gate, and King Salman Park. This will be funded through a $21 billion expansion plan announced in late 2024, aimed at nearly doubling the network’s current coverage. The Royal Commission for Riyadh City (RCRC) has also outlined further potential extensions toward Khuzam, Fursan Suburbs, the Diplomatic Quarter, and Diriyah.

Web Resources

  • Saudi Ministry of Transport and Logistics Services
  • American Auto Policy Council (AAPC)
  • Country Reports by ITA - Industry & Analysis
  • Saudi Ministry of Industry and Mineral Resources
  • Saudi Ministry of Finance
  • U.S.-Saudi Business Council
  • Market Intelligence Reports
  • The Saudi Public Investment Fund & Subsidiary Companies
  • Riyadh Integrated-Special Economic Zone

Trade Shows/ Events/Mission

  •  ITS World Congress, Atlanta, Georgia, August 24-28, 2025
  • SEMA Show, Las Vegas Convention Center, Las Vegas, Nevada, November 4-7, 2025
  • AAPEX, Las Vegas Convention Center, Las Vegas, Nevada, November 4-6, 2025
  • Automechanika, Riyadh International Convention & Exhibition Center, Riyadh, Saudi Arabia, April 30-May 2, 2026
  • Saudi Intermobility Expo, Riyadh or Jeddah (venue TBD), Saudi Arabia, November 2025

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