Logistics Saudi special logistics zone signs deals to stimulate growth By Pramod Kumar October 15, 2024, 8:12 AM SILZ The three million sq m Special Integrated Logistics Zone was launched in 2022 by Saudi Arabia’s General Authority for Civil Aviation Saudi Arabia’s Special Integrated Logistics Zone Company (SILZ) has signed three memoranda of understanding (MoUs) to develop ‘Riyadh Integrated’, the country’s first special logistics zone. The company hopes the MoUs, signed during the inaugural Global Logistics Forum in Riyadh, will stimulate industrial growth, economic diversification and job creation. The first agreement was signed with retail giant Shein, who will lease a built-to-suit facility to strengthen the country’s role in international supply chains. SILZ will collaborate with the King Salman International Airport to develop a logistics platform to enhance Riyadh’s air cargo ecosystem. The final agreement includes establishing the White Palm Refinery through a joint venture with Valcambi and Ajlan & Bros to create the kingdom’s first London Bullion Market Association-accredited precious metal refinery. The agreements focus on streamlining supply chain processes, introducing value-added services, and expanding the country’s capacity to handle global logistics operations. Dr Fadi Al-Buhairan, CEO of SILZ, said the agreements demonstrate the development of not just isolated businesses but full value chains that benefit from joint resilience and cost savings. Riyadh Integrated focuses on light manufacturing, logistics, trade and distribution, offering 50-year tax relief, zero percent corporate income tax, VAT and withholding tax exemptions, 100 percent foreign ownership, and streamlined certifications. The three million sq m SILZ was launched in 2022 by Saudi Arabia’s General Authority for Civil Aviation. Apple will be one of the global giants operating from the new zone. $266bn logistics hub spend starts in Saudi Arabia Maersk opens logistics park in Jeddah Bahri starts work on logistics centre at Jeddah Islamic Port One of Saudi Arabia’s Vision 2030 aims is to transform the kingdom’s aviation and logistics sector, increasing annual cargo capacity from around one million tonnes to 4.5 million tonnes by the end of this decade. King Salman International Airport Development Company (KSIADC) has signed an agreement with EWPartners, an investment company backed by Saudi Arabia’s Public Investment Fund to establish a special economic zone to increase trade with China. The KSA-Sino Logistics Zone will be located at the King Salman International Airport in Riyadh, which is expected to be one of the largest airports in the world when completed by 2030. The project is expected to attract more than 3,000 wholesalers and retailers and about 200 light industrial manufacturers from China and Asia. Saudi Arabia’s transport and logistics minister, Saleh Al-Jasser, told a logistics forum in Riyadh that the first phase of a planned $266 billion budget to turn Saudi Arabia into a global logistics centre has already “drastically” reduced carbon emissions. “The national transport and logistics strategy launched in mid-2021 is set to invest more than a trillion riyals [$266 billion] by 2030, of which 200 billion riyals have already been deployed,” he said.
