Saudi transport, logistics sector seen growing 13.6% annually through 2030

Saudi Arabia’s transport and logistics sector is expected to grow at a compound annual growth rate (CAGR) of 13.6% through 2030, driven by opportunities to localize transport-related industries, increase local content, and adapt to changing business models and consumer behavior, Argaam said in a report released on Oct. 25.

The sector’s market size is forecast to reach SAR 355.6 billion by 2030, up from SAR 188.3 billion in 2025, representing growth of nearly 89% over the period, according to Argaam’s estimates.

Key growth drivers include population growth, an expected increase in tourist arrivals as Saudi Arabia hosts major global events such as Expo 2030 and the 2034 FIFA World Cup, expanding foreign trade, rising incomes and household spending on transport services, and continued government investment in infrastructure, the report said.

The sector has shown considerable resilience in recent years despite challenges affecting some subsectors, particularly public passenger transport and air travel, during COVID-19 restrictions imposed inside and outside the Kingdom.

Stable demand for warehousing and logistics services, supported by e-commerce growth and demand for food and pharmaceutical products, helped cushion the impact of those challenges and sustain the sector’s performance.

Available data point to significant improvements in infrastructure and operating capacity across Saudi Arabia’s road, maritime, air, and rail transport networks, reflecting investment in sector development and stronger operational capabilities.

The sector also offers investment opportunities, particularly in innovative solutions to improve passenger and freight transport efficiency and meet the evolving needs of businesses and consumers.

Despite its positive outlook, the sector faces challenges from global economic volatility and geopolitical tensions that could disrupt supply chains. Reliance on certain imported inputs and technologies could also put additional pressure on sustainable growth.

The Saudi government continues to introduce incentives and support programs, including long-term industrial financing, customs exemptions, and export development initiatives. These measures aim to reduce investment risks, strengthen the sector’s competitiveness, and make the investment environment more attractive.

Transport and logistics is a strategic pillar of the Saudi economy, supporting a range of economic activities and improving supply chain efficiency. The Ministry of Transport and Logistics Services

oversees the sector’s regulation and development in coordination with relevant regulatory and operational entities.

The study is part of Argaam’s new research services, which provide in-depth analysis of economic sectors using field surveys, published economic and financial data, statistics, and advanced analytical tools. The services aim to help investors and decision-makers better understand sector trends, growth drivers, and challenges, while providing forecasts based on an integrated database and analytical methodology.

Transport and Logistics Sector in the Kingdom: An Analytical Review and Forward-Looking Outlook