Saudi Logistics Hub Strengthens Trade Relations Between Saudi Arabia, India

The Saudi Logistics Hub, a government initiative mandated to support the growth of Saudi Arabia’s logistics sector, wrapped up its global roadshow of the year with final stop in India’s thriving city – Mumbai. The event highlighted Saudi Arabia’s efforts to transform the country’s logistics sector and promoted opportunities for cooperation with India.

Saudi Arabia and India have stepped up trade and investment cooperation in recent years. In 2018, India was Saudi Arabia’s third largest export market and fifth largest import market, valued at US$ 5.5 billion and US$ 28.4 billion respectively.

His Excellency Eng. Saleh bin Nasser Al-Jasser, Saudi Minister of Transport and Chairman of the Saudi Logistics Hub, said: “Saudi Arabia and India share a commitment to expanding and liberalising bilateral trade relations and our inclusion of India as the final 2019 stopover of the series of global roadshows organised by Saudi Logistics Hub, is testimony to these strengthening synergies. We aim to contribute to shaping a conducive business landscape in our country and look forward to leveraging our existing ties with our foreign partners to encourage the growth and development of the logistics sector.”

Saudi Arabia currently commands a 55 percent share of the logistics industry in the GCC region.Saudi Arabia currently commands a 55 percent share of the logistics industry in the GCC region. Over the last decade, the country has invested more than US$100 billion in its transport and logistics infrastructure, resulting in a comprehensive nationwide network. In 2019, Saudi Arabia achieved a 47 percent increase in the number of new foreign transport and logistics companies, according to the Saudi Arabian General Investment Authority.

Today, Saudi Arabia has one of the fastest-growing logistics sectors globally. The country ranked as the world’s fastest economic reformer in the World Bank Group’s Doing Business 2020 report, climbing 30 positions to the 62nd place in the Ease of Doing Business Ranking. Saudi Arabia has demonstrated significant improvements in nine out of 10 areas, surging 72 spots to the 86th place in the Trading Across Borders Ranking that factors in time and cost of the logistical process in the export and import of goods and services. In addition, the country jumped up 103 places to the 38th spot in the Starting a Business Ranking. The impressive reforms are part of the government’s endeavors to enhance the business climate and encourage foreign investors to set up operations in Saudi Arabia.

Source: Manufacturing Today

Image Courtesy: DeccanHerald