Saudi Arabia to establish economic zone with China

EWPartners

• KSA-Sino Logistics Zone to be developed
• Site at King Salman International Airport
• To attract 3,000 wholesalers and retailers

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.

The new development aims to improve logistical connections between China and Saudi Arabia and help establish the kingdom as a base for air cargo movement in the region.

Marco Mejia, acting CEO of KSIADC, said the partnership “marks a significant step in delivering on our vision to establish King Salman International Airport as a leading logistics hub serving regional and global logistics companies and supporting Saudi Arabia’s trade expansion”. 

“By joining forces with EWPartners, we are poised to enhance our logistics infrastructure, boost efficiency, and create new opportunities for economic growth in Saudi Arabia and the region,” Mejia said. 

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Jerry Li, founder and managing partner of EWPartners, said the zone will pave the way for new growth in the kingdom’s logistics and ecommerce sectors. 

Li said EWPartners’ focus on technology and cross-border investment, and the strategic location of King Salman International Airport “will unlock immense potential for cross-border trade”. 

The project will cover a total area of four sq km and will be developed in four phases over a period of 12 years.

The site will include a light industrial park focused on manufacturing and logistics, and an international commercial park focused on providing a centre for global businesses to establish their presence.

International companies are expected to establish manufacturing capabilities within the zone and collaborate with Saudi enterprises to produce locally for distribution to markets around the world. 

EWPartners, formerly eWTP Arabia Capital, was established in 2017 as an international investment firm specialising in cross-border investments between Asia and the Mena region. It was the first investment firm to launch a cross-border platform between the kingdom and China.

KSIADC has been tasked with completing a new airport by 2030 that will be home to the new national airline Riyadh Air, also owned by PIF. 

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.