Saudi Arabia to license 3 international logistics companies

Saudi Arabia to license 3 international logistics companies

RIYADH: Saudi Arabia is close to granting three international companies licenses to work in the field of parcel transportation services in the Kingdom, with a potential injection of SR6 billion ($1.6 billion) into the local market, said the Communications and Information Technology Commission (CITC). The Saudi postal sector has witnessed rapid growth in recent years with the number of parcels increasing by 160 percent since 2019, to exceed 20.3 million during the first quarter of 2021, the CITC said in a statement on Wednesday. Today, there are 20 international companies and 35 local licensed for parcel transportation services in the Kingdom. The investments align with the Vision 2030 objectives aimed at making the Kingdom a leading global logistics platform and a connecting hub for the three continents, the CITC said. Transport and logistics will contribute 10 percent of Saudi GDP by 2030, up from 6 percent today, following the implementation of the Kingdom's new strategy for the sector, Minister of Transport Saleh Aljasser said on Tuesday.