Saudi Arabia has revealed ambitious plans to set up a global logistics hub as part of a diversification strategy away from oil. As the world’s largest oil exporter, it understands the persistent risk of volatility in oil prices better than most. According to Ahmed Al-Hakbani, governor of Saudi Customs, the country has every intention of becoming a global logistics hub as part of its Vision 2030, a blueprint for Saudi Arabia’s diversification away from oil. “The Saudi economy has consistently grown by an average of 4% over the past 25 years, driven mainly by oil exports,” he said. “Over the past 45 years we have tried to diversify away from oil with very limited success, so we needed a shock to the system.” He said while Vision 2030 was bold, the plan was achievable. Several smaller development plans made up the overarching strategy, said Al-Hakbani, but at the heart of it all was logistics transformation. “About 10% of global trade passes through the Red Sea. With a five-hour flight you can reach half the world’s population,” he said. “We are the ideal hub connection between Africa, Asia and Europe.” This, he said, had given rise to the idea of creating a global logistics hub in Saudi. He said to boost its imports and exports the customs authority in the country was also ramping up its services. “Our logistics continues to improve. To achieve our goals we are working on three main areas – infrastructure, sector quality, and improved processes to streamline the movement of cargo.” In terms of infrastructure the country has implemented logistics zones at two of its international airports, commissioned the construction of 155 new road projects stretching over 3 300km, and inaugurated two new land borders with Kuwait and Iraq. Two new airports are also being built. “We have liberalised our postal sector and implemented several special economic zones across the country, while systems and processes to facilitate trade are being implemented or upgraded.” From a new truck appointment system for faster container loading at the Saudi ports to new regulation for land transport, not a stone was being left unturned in reaching its goal, said Al-Habana.
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We are the ideal hub connection between Africa, Asia and Europe. – Ahmed Al-Hakbani