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Arab News
5 days ago
- Business
- Arab News
Saudi Arabia's transportation boom opens doors for private investment
Saudi Arabia's transportation boom opens doors for private investment RIYADH: Saudi Arabia's rapidly expanding transportation sector is unlocking new investment opportunities for private players, both local and global, experts have told Arab News. Central to the Kingdom's Vision 2030 strategy, transportation development is seen as a key enabler for economic diversification and the drive to position Saudi Arabia as a global logistics, tourism, and business hub. With a growing emphasis on public-private partnerships, Minister of Transport and Logistic Services Saleh Al-Jasser announced during the third PIF Private Sector Forum, held in Riyadh in February, that private entities are expected to contribute around 80 percent of the targeted investments in the country's transport and logistics sector. He added that the total value of projects offered to the private sector — through privatization and other models — could reach SR240 billion ($63.95 billion). Joseph Salem, partner and travel, transportation and hospitality practice lead at Arthur D. Little, Middle East, told Arab News that public-private partnerships are at the core of this strategy. 'Privatization of key transport infrastructure, such as ports and airports, is creating new opportunities for private investment,' he said, adding: 'The development and management of cargo terminals through PPP agreements are attracting private efficiency and capital. The construction and engineering sectors are also benefiting, with numerous megaprojects like the Riyadh Metro and Neom's mobility network.' Alessandro Tricamo, partner at Oliver Wyman's transportation and services practice for India, the Middle East, and Africa, echoed similar sentiments and emphasized the importance of selecting suitable assets to attract investors. 'Globally, asset classes such as airports and seaports are typically considered bankable, with the potential to generate strong returns and attract private investment. Conversely, railways and public transport systems often require structured support from the government to become commercially viable,' said Tricamo. He added: 'In the Kingdom, there's still a need to refine how these projects are structured and presented to the private sector, as expectations are sometimes misaligned with market realities. Clear, realistic frameworks will help unlock greater private sector involvement and broaden the Kingdom's business landscape.' The Kingdom's logistics infrastructure is expanding rapidly. According to a report released by the General Authority for Statistics in December, the number of logistics facilities in the country has increased by 267 percent since 2021, with the Eastern Province leading in logistics hubs spanning 6.3 million sq. meters. 'Private companies are seizing opportunities in trucking, warehousing, freight forwarding, and e-commerce delivery services. Technology firms are also entering the market, offering solutions in AI, electric vehicles, and autonomous transport,' said Salem. He added: 'Overall, the transportation revolution in Saudi Arabia is creating a more diversified and competitive business environment. Private sector involvement is key to realizing the Kingdom's ambitious Vision 2030 goals.' Transportation as a growth enabler Anthoine Barthes, vice president of Al-Futtaim Automotive, told Arab News that transportation infrastructure underpins nearly every pillar of Vision 2030, acting as a foundation for economic growth. According to Barthes, transportation is not only about mobility but also about creating links between economic zones, facilitating trade, drawing investment, enhancing quality of life, and boosting tourism. 'A key objective is for Saudi Arabia to become a global logistics hub, and this requires state-of-the-art ports, efficient rail networks, extensive road infrastructure, and modern airports capable of handling significant cargo and passenger volumes,' said Barthes. He also pointed to the Riyadh Metro — with its six lines spanning 176 km — as evidence of the Kingdom's progress in developing effective public transport systems. 'These efforts, alongside continuous improvements to road infrastructure and the integration of smart city mobility solutions, are crucial for enhancing the quality of life, mitigating urban congestion, and fostering sustainable urban growth,' added Barthes. Salem noted that infrastructure development supports the growth of multiple industries, including tourism and entertainment, with road upgrades linking key cities to rising destinations such as Qiddiya and Amaala. He also highlighted how enhancements around Makkah and Madinah have improved accessibility for millions of religious visitors, reinforcing tourism and Umrah growth. Integrated logistics backbone Tricamo underlined that efficient logistics and supply chain management are fundamental to sustained economic development. 'A well-connected transport network that links urban and industrial centers and facilitates the smooth movement of goods and people is a key enabler of the Kingdom's broader economic ambitions. It directly impacts the reliability, speed, and cost-effectiveness of supply chains,' said Tricamo. Arthur D. Little's Salem believes that infrastructure modernization and the integration of advanced technologies are strengthening the Kingdom's global supply chain footprint. He pointed to Saudi Arabia's rise in the World Bank's Logistics Performance Index, climbing 17 spots to rank 38th globally in 2023. 'Vision 2030 also focuses on expanding multi-modal freight capacity. The rail network will grow from 3,650 km to 8,000 km, enhancing logistics. Air cargo capacity is set to increase to over 4.5 million tonnes annually by 2030, while Saudi ports will handle up to 40 million TEUs,' said Salem. He added: 'Additionally, 40 new logistics centers across 100 million sq. meters will attract global companies, positioning Saudi Arabia as a logistics hub. These efforts are expected to reduce logistics costs, improve reliability, and grow the sector to $57 billion by 2030.' Impact on the business landscape Barthes said ongoing advancements in the Kingdom's transport infrastructure are expected to reshape the business environment. He noted that reduced logistics costs, quicker deliveries, and agile supply chains will benefit a wide range of industries. 'A world-class infrastructure is a primary magnet for foreign direct investment. International companies are more willing to establish operations, knowing they can efficiently move goods and people,' said Barthes. Salem emphasized how transportation development enhances the ease of doing business and improves trade connectivity through upgraded logistics hubs. 'The growth of tourism, retail, and real estate sectors is another benefit. Better transportation networks make it easier for people to travel and for goods to be delivered, driving demand in these industries,' said the Arthur D. Little partner. He added that modernized ports, roads, and rail corridors are boosting trade volumes, while domestic improvements in connectivity are helping to meet growing internal demand across agriculture, retail, and construction. Technology-driven transformation Tricamo highlighted the vital role of digital innovation in shaping Saudi Arabia's future transport ecosystem. 'Digital solutions — from smart ticketing and real-time tracking management systems — will be essential for building a future-ready, user-centric transport ecosystem,' he said. Salem echoed these views, noting the Kingdom's strong push for smart infrastructure, digital logistics, and electric mobility. He added that electric vehicles are reshaping transportation, supported by investments in thousands of fast-charging points across 1,000 locations by 2030. The goal is to have 30 percent of vehicles in Riyadh electrified by then. 'Smart cities like Neom are integrating IoT sensors, AI-driven traffic management, and predictive congestion systems to optimize transportation. These technologies improve traffic flow, reduce accidents, and enhance the overall commuter experience. In logistics, automation and AI are being used to streamline freight operations, reduce errors, and optimize delivery routes,' said Salem. Overcoming challenges Salem acknowledged that the Kingdom faces hurdles such as overreliance on road transport, the country's vast geography, regulatory bottlenecks, skill shortages, and climate-related challenges. He emphasized that the government is proactively addressing these with targeted initiatives. 'To reduce reliance on roads, Saudi Arabia is investing heavily in rail and public transit projects like the Riyadh Metro. The vast size of the Kingdom is being addressed by extending transportation networks to remote areas, ensuring equitable access to modern infrastructure,' said Salem. He added that regulatory reforms, including the establishment of the National Center for Privatization, are streamlining approval processes and attracting private sector investment. 'Through partnerships with global firms, Saudi Arabia is transferring knowledge and building local expertise to overcome skills gaps,' said the Arthur D. Little partner. Tricamo pointed to the scale of investment as the primary challenge facing transport infrastructure expansion. 'In Saudi Arabia, the ambitious scope and accelerated timeline of Vision 2030 add further complexity, requiring multiple high-value infrastructure projects to be developed simultaneously. The private sector can play a key role in easing this burden,' he said. The Oliver Wyman partner concluded by emphasizing the need for careful asset selection to balance commercial viability and government support.
Zawya
24-06-2025
- Business
- Zawya
African Union Commission (AUC) Chairperson reaffirmed Africa's commitment to a bold & equal partnership with the United States, stating, 'We're not seeking aid, but building co-created solutions"
At the #USAfricaSummit2025 in Luanda, AU Commission Chairperson H.E. Mahmoud Ali Youssouf reaffirmed Africa's commitment to a bold&equal partnership with the United States, stating, 'We're not seeking aid, but building co-created solutions.' He noted that with 1.3 billion people, abundant resources,&a surge in innovation, Africa is poised for transformative growth. From agribusiness in West Africa to fintech in East Africa, the AU is supporting private sector-led development across all regions. He also underscored that strategic sectors such as manufacturing, digital, energy,&agro-industry, are open for U.S. investment. The AU's Private Sector Forum, SME and startup legislation,&its Digital Strategy are laying the groundwork for inclusive, sustainable prosperity. He concluded by saying "this should not just be a summit, but a call to action,' he said. 'Together, let's walk the pathways to prosperity—with unity, purpose,&Agenda 2063 as our guide.' Distributed by APO Group on behalf of African Union (AU).
Zawya
27-05-2025
- Business
- Zawya
Key Outcomes from Islamic Development Bank Group (IsDB)'s 13th Private Sector Forum in Algiers
The Islamic Development Bank Group (IsDBG) ( affiliated institutions organized the 13 th Private Sector Forum from May 20 to 22, 2025, at Abdelatif Rahal International Conference Center in Algiers (People's Democratic Republic of Algeria). The forum was convened on the sidelines of the Group's annual meetings, under the high patronage of His Excellency President Abdelmadjid Tebboune, President of the People's Democratic Republic of Algeria. The Islamic Development Bank Group's Private Sector Forum witnessed a wide turnout, with more than 1,300 participants from 50 countries. It featured active participation from the local, regional, and international private sectors. The program included eight (8) events and panel discussions, with the involvement of more than 50 speakers and 36 exhibitors. For the third consecutive year, the forum presented the "Private Sector Award" to outstanding companies and financial institutions in recognition of their contributions to economic development, trade facilitation, investment, and risk management. Additionally, the forum saw the signing of 26 agreements and memoranda of understanding, amounting to over $3.6 billion. A startup competition was also held, with participation from more than 300 startups and business incubators. More than 250 bilateral meetings (B2B and B2G) were conducted to enhance trade, investment, and partnership relations among member countries. The forum showcased the IsDB Group's activities and initiatives aimed at empowering both public and private sectors in member countries, particularly in the People's Democratic Republic of Algeria. The discussions focused on prevailing opportunities and challenges facing the business sector and highlighted the Group's suite of financing instruments, including lines of financing, private sector financing, trade development support, investment insurance, and export credit facilities, among others. The forum agenda featured a series of dialogue sessions and workshops addressing key economic themes and development projects. Particiants also attended presentations on trade and investment opportunities. The forum attracted high-level participation from Algerian government officials, presidents and CEOs of local, regional, and international private sector companies, investors, businessmen, chambers of commerce and industry, trade and investment promotion bodies, and regional and international financial and development institutions. In his opening remarks, His Excellency Dr. Mohammed Al Jasser, President of the Islamic Development Bank Group, welcomed all participants to the forum. He stated: 'This forum is not just an annual event, but a renewed strategic platform through which we highlight the innovative tools and services offered by the Islamic Development Bank Group institutions to support investment and trade, and expand partnerships within our member countries, including the beloved Republic of Algeria. This session represents a unique opportunity for investors, businessmen, and CEOs from member countries to open channels of communication, establish partnerships, and forge business relations with their counterparts in the Republic of Algeria.' Dr. Khaled Yousef Khalafallah, CEO of the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and Acting CEO of the Islamic Corporation for the Development of the Private Sector (ICD), stated that the Private Sector Forum 'witnessed a distinguished cohort of partners from both public and private sectors. Sustainability and development constitute the core focus of our mission, as we strive to unify the efforts of our private sector partners and other financing agencies to bridge the sustainable financing gap, provide co-financing opportunities, and develop innovative solutions to address the challenges of sustainable development. He added, 'Since its inception and until 2024, the ICIEC provided cumulative insurance coverage exceeding 121 billion USD, including 96 billion USD to support trade flows and more than 25 billion USD to facilitate foreign investments. Leveraging a robust global reinsurance network, the Corporation has mobilized a cumulative reinsurance capacity of 69 billion USD from the private reinsurance market. Through more than 65,000 transactions across vital sectors including agriculture, renewable energy, infrastructure, manufacturing, and healthcare, the Corporation continues to drive significant development impact across member countries." Regarding the ICD, Dr. Khalid stated 'Since its inception in 1999, the Islamic Corporation for the Development of the Private Sector (ICD) has played a pivotal role in fostering development, empowering businesses, promoting entrepreneurship, and supporting sustainable economic growth. Its diversified investments have had a tangible impact on communities by enabling transformative projects, facilitating partnerships, and building capacity. The Corporation has so far approved 575 projects worth 7.58 billion USD. ICD interventions cover various sectors, including finance, infrastructure, agriculture, manufacturing, and energy, and it has investment operations in 48 member countries, underscoring the broad geographic and sectoral reach of ICD operations.' On his part, Eng. Adeeb Al-Aama, CEO of the International Islamic Trade Finance Corporation (ITFC), stated, "The 13th edition of the Private Sector Forum reaffirmed the vital role of the private sector in fostering economic growth, generating employment, and reducing poverty in member countries. The active participation of the business investors greatly enriched discussions and strengthened collaborative efforts to promote economic resilience and business dynamism.' He added, 'Since its launch in 2008, ITFC has extended over 83 billion USD in financing to OIC member countries, becoming the leading provider of trade solutions in the region. Of this, 19 billion USD was allocated to enhance SMEs competitiveness – combining financial support, technical assistance, and capacity building efforts to help these enterprises access regional and international markets.' For more information, please visit the event website ( Distributed by APO Group on behalf of Islamic Development Bank Group (IsDB Group). ICD: Website: ITFC: Tel: +966 12 646 8337 Fax: +966 12 637 1064 E-mail: ITFC@ THIQAH: Email: THIQAH@ Social Media: ICIEC: X: Facebook: LinkedIn: Youtube: Instagram: ICD: Twitter: @ ICD_PS LinkedIn: ICDPS Facebook: icdps Instagram: @ icdps YouTube: ICDPSTV ITFC: Twitter: @ ITFCCORP Facebook: @ ITFCCORP LinkedIn: International Islamic Trade Finance Corporation (ITFC) THIQAH: Twitter: @ IDBGTHIQAH Facebook: @ IDBGTHIQAH LinkedIn: IsDB Group Business Forum - THIQAH About The Islamic Development Bank (IsDB): The Islamic Development Bank (IsDB), rated AAA by major international rating agencies, is a multilateral development bank that has strived to improve the lives of the communities it serves for over 50 years by delivering impact at scale. Operating in 57 member countries across four continents, IsDB's mission is to empower people to drive their economic and social progress and provide the infrastructure needed to enable them to reach their full potential. Headquartered in Jeddah, Saudi Arabia, the Bank also operated regional offices and centers of excellence in 11 member countries. Over the years, the Bank has evolved from a single entity into a group of five entities comprising: the Islamic Development Bank (IsDB), the Islamic Development Bank Institute (IsDBI) in charge of research and Training, the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), the Islamic Corporation for the Development of the Private Sector (ICD), and the International Islamic Trade Finance Corporation (ITFC). About the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC): Established in 1994, ICIEC seeks to strengthen economic relations and stimulate trade and investment among OIC member countries through the provision of risk mitigation instruments and financial solutions. It remains the world's only multilateral insurer operating in compliance with Islamic Sharia. ICIEC currently serves 50 countries and has maintained its "Aa3" insurance credit rating from Moody's for 17 consecutive years – the among credit and political risk insurers. It also received a first-time long-term credit rating of AA- from Standard&Poor's with a stable outlook. The Corporation's resilience is underpinned by sound underwriting, reinsurance and risk management practices. To date, ICIEC has cumulatively insured over 121 billion USD in trade and investment across key sectors, including energy, manufacturing, infrastructure, healthcare, and agriculture. For more information, visit: About the Islamic Corporation for the Development of the Private Sector (ICD): A member of the Islamic Development Bank Group, ICD is a multilateral financial institution with an authorized capital is 4 billion USD, of which 2 billion USD is available for subscription. Its shareholders comprise the Islamic Development Bank, 56 member countries, and five public financial institutions. Since its inception in 1999, the Corporation has played a pivotal role in fostering inclusive and sustainable growth through Shariah-compliant financing, cross-border investments, and vital infrastructure development. ICD has contributed significantly to enhancing the economic landscape of its member countries. About the International Trade Finance Corporation (ITFC): A member of the Islamic Development Bank Group, ITFC was established to promote trade among OIC member countries, contributing to their economic development and social well-being. Since commencing operations in January 2008, ITFC has provided over 83 billion USD in trade finance, becoming a leader in delivering tailored trade solutions. The Corporation's mission is to serve as a catalyst for trade development, helping member countries access finance and capacity building programs to enhance competitiveness and global market integration. About the Islamic Development Bank Group Business Forum (THIQAH): THIQAH serves as the private sector interface of the IsDB Group, facilitating engagement and collaboration between the Group entities and businesses in member countries. Its core aim is to build an inclusive, strategic platform for dialogue, cooperation and partnerships focused on high potentials investment opportunities. By leveraging IsDB Group resources, THIQAH offers support services and confidence to investors while promoting cross-border investment flows withing member countries. Website (
Leaders
23-05-2025
- Business
- Leaders
THIQAH Signs Two MoUs in Algiers to Strengthen Private Sector Investment
The Islamic Development Bank (IsDB) Group Business Forum, THIQAH, has signed two memoranda of understanding (MoUs) aimed at boosting private-sector investment during the Private Sector Forum held alongside the 2025 IsDB Group Annual Meetings in Algiers. The first MoU, signed with the Algerian Chamber of Commerce and Industry (CACI), aims to promote the exchange of information on trade and investment opportunities, encourage joint participation in economic events, and support the exchange of business delegations. This agreement is designed to stimulate economic growth and deepen private-sector collaboration between Algeria and other IsDB member countries. The second MoU, signed with the Arab African Center for Investment and Development (CAAID), focuses on strengthening cooperation in investment and development. It outlines plans to co-organize regional and international conferences, facilitate business exchanges, and share expertise to enhance global economic engagement. These partnerships reflect THIQAH's ongoing commitment to advancing national and regional cooperation, attracting private-sector investment, and supporting the IsDB Group's broader goals of inclusive and sustainable development. Related Topics: THIQAH, KAUST Present Revolutionary Research Paper at ArabicNLP 2024 KAUST Accelerates Scientific Research with 67 Projects in AI, Cybersecurity, Bioinformatics IsDB Participates in Roundtable on Partnerships for Impact in Washington Saudi Arabia's nominee for IsDB Group president receives unanimous approval Short link : Post Views: 5
Leaders
23-05-2025
- Business
- Leaders
Arab Coordination Group Partners with Private Sector to Drive Sustainable Development
The Arab Coordination Group (ACG) hosted a flagship session titled 'Partnering for Impact: The Arab Coordination Group and the Private Sector Driving Sustainable Development' during the Private Sector Forum of the Islamic Development Bank (IsDB) Group. This session took place alongside the IsDB Group Annual Meetings in Algiers. The event spotlighted key initiatives, strategic investments, and pioneering success stories led by ACG member institutions. It underscored the global impact of public-private partnerships in advancing sustainable development and emphasized the importance of private-sector engagement in emerging and high-potential markets. The dialogue focused on fostering collaboration and scalable solutions, with a particular emphasis on infrastructure development and the critical role of small and medium-sized enterprises (SMEs) in promoting inclusive economic growth. Established in 1975, the ACG is a strategic alliance of development finance institutions committed to delivering coordinated and effective development support. By leveraging shared expertise and facilitating knowledge exchange, the Group plays a vital role in helping developing countries achieve their social and economic development objectives. To date, the ACG has extended over 11,000 development loans across more than 160 countries. The ACG comprises ten key institutions—four bilateral and six multilateral—including: Abu Dhabi Fund for Development Arab Bank for Economic Development in Africa (BADEA) Arab Fund for Economic and Social Development Arab Gulf Programme for Development (AGFUND) Arab Monetary Fund Islamic Development Bank (IsDB) Kuwait Fund for Arab Economic Development OPEC Fund for International Development Qatar Fund for Development Saudi Fund for Development Together, these institutions are driving sustainable impact through strategic collaboration with the private sector. Related Topics : ICIEC, SAPICO Announce Strategic Partnership to Boost Trade, Investment Opportunities Saudi Arabia Announces Plan to Invest in Meat Self-Sufficiency Saudi Family Forum Launches National Framework for Children's Online Safety Board of Grievances Attains ISO 20000 Certification for IT Service Management Short link : Post Views: 1 Related Stories
