The SaudiMinistry of Transport has announced plans to launch a logistics zone in Al-Khomrahzone in Jeddah on the Red Sea, to be open to private investment.
The plans arepart of a trend to diversify the Saudi economy away from oil in line with theKingdom Vision 2030.
The statementsaid that the new zone, which is being built in Al-Khomrah,aims to strengthen the logistics sector to contribute to the diversification ofeconomic resources of the oil-dependent kingdom. It's noteworthy that Jeddahhas one of the Saudi Arabia's largest ports.
The launch ofthe new logistics zone to private investors in Jeddah port on the Red Sea ispart of a broader industrial initiative to diversify the Saudi economy, reduceits dependence on oil and create jobs for Saudis.
Al-Khomrah, which will support shipping and cargo activities, spans 2.2 million square meters in Jeddah, one of the Saudi Arabia's largest ports.
SaudiArabia's Transport Minister, Nabil Al-Amoudi said the zone, as being the SaudiArabia's largest logistics zone, hopes to transform the country into a globallogistics hub and create 10,000 jobs directly.
The zone ispart of the National Industry and Logistics Development Program, which aims tocreate 1.6 million jobs and attract investments worth SAR1.6tn ($427bn) overthe next 10 years. Of this, SAR135bn riyals are earmarked for investment in thelogistics sector.
As part of anambitious reform strategy, Saudi Arabia plans to have a private sector thatmanages a large part of its infrastructure, including airports and seaports,with the government acting as regulator.
"Thetotal investment in the logistics zone in the winery and other ports will reachseven billion riyals," said Saad Al-Khalab, head of the General Authorityfor Ports.
Al-Khomrahwill join other logistics zones in Saudi Arabia, such as King Abdullah EconomicCity in the north of Jeddah, which has its own port and provides logisticalinvestments.
Over adecade, Saudi Arabia has spent $30bn to build six economic cities across thecountry to diversify the economy and create jobs for young people.