Ksa Freight Transport Market Size, Share, Growth Drivers, Trends, Opportunities & Forecast 2025–2030

The Saudi Arabia freight transport market, valued at USD 32 Bn, is boosted by strategic location, trade activities, and government strategies like NTLS for efficient supply chains.

Region:Middle East

Author(s):Rebecca

Product Code:KRAD1332

Pages:88

Published On:November 2025

About the Report

Base Year 2024

Saudi Arabia Freight Transport Market Overview

  • The Saudi Arabia Freight Transport Market is valued at USD 32 billion, based on a five-year historical analysis. This growth is primarily driven by the country's strategic location as a logistics hub, increasing trade activities, and significant investments in infrastructure development. The expansion of the logistics sector is further supported by the government's initiatives to diversify the economy and enhance the efficiency of supply chains. Recent trends include the rapid development of logistics zones, multimodal corridors, and digital freight platforms, which have improved visibility and operational efficiency across the sector .
  • Key cities such as Riyadh, Jeddah, and Dammam dominate the market due to their strategic locations, robust infrastructure, and proximity to major ports and industrial zones. Riyadh serves as the capital and a central business hub, while Jeddah is the primary gateway for maritime trade, and Dammam is crucial for the oil and gas sector, making these cities pivotal in the freight transport landscape. New expressways and logistics parks in these cities have further strengthened their role in the national freight network .
  • In 2023, the Saudi government implemented the National Transport and Logistics Strategy (NTLS), issued by the Ministry of Transport and Logistics Services. This strategy includes investments of approximately USD 1.5 billion to improve logistics infrastructure, streamline customs processes, and promote the use of advanced technologies such as blockchain-driven customs clearance and digital freight platforms. The NTLS mandates the development of logistics zones, multimodal corridors, and technology integration standards for freight operators, positioning Saudi Arabia as a leading logistics hub in the region .
Saudi Arabia Freight Transport Market Size

Saudi Arabia Freight Transport Market Segmentation

By Transport Mode:

Saudi Arabia Freight Transport Market segmentation by Transport Mode.

The transport mode segmentation includes Road Freight (Full-Truck-Load and Less-than-Truck-Load), Maritime Freight, Air Freight, and Rail Freight. Among these, Road Freight is the dominant mode due to its flexibility, extensive network, and ability to cater to both urban and rural areas. The increasing demand for quick deliveries and the rise of e-commerce have further propelled the growth of road freight services. Maritime Freight follows closely, driven by the country's significant port facilities and international trade activities.

By End-User Industry:

Saudi Arabia Freight Transport Market segmentation by End-User Industry.

This segmentation includes Oil and Gas, Manufacturing, Wholesale and Retail Trade, Construction, Agriculture, Fishing, and Forestry, Mining and Quarrying, and Others. The Oil and Gas sector is the leading end-user, driven by the country's vast petroleum resources and the need for efficient transport of crude oil and related products. Manufacturing and Wholesale and Retail Trade also contribute significantly, reflecting the growing industrial base and consumer demand in the region.

Saudi Arabia Freight Transport Market Competitive Landscape

The Saudi Arabia Freight Transport Market is characterized by a dynamic mix of regional and international players. Leading participants such as Almajdouie Transportation, SMSA Express Transportation Company Ltd, Aramex, DHL Supply Chain, Kuehne + Nagel International AG, DB Schenker, FedEx Corporation, United Parcel Service Inc (UPS), Agility Logistics, Gulf Agency Company (GAC), Expeditors International of Washington Inc, DSV A/S, CEVA Logistics, Nippon Express Holdings Inc, National Shipping Company of Saudi Arabia (NSCSA) contribute to innovation, geographic expansion, and service delivery in this space.

Almajdouie Transportation

1965

Dhahran, Saudi Arabia

SMSA Express Transportation Company Ltd

1994

Riyadh, Saudi Arabia

Aramex

1982

Dubai, UAE

DHL Supply Chain

1969

Germany

Kuehne + Nagel International AG

1890

Switzerland

Company

Establishment Year

Headquarters

Company Size (Large, Medium, or Small)

Revenue Growth Rate (CAGR %)

Fleet Size and Capacity

Fleet Utilization Rate (%)

Service Coverage (Domestic/International)

Technology Integration (Telematics, GPS, Fleet Management)

Saudi Arabia Freight Transport Market Industry Analysis

Growth Drivers

  • Increasing E-commerce Activities:The e-commerce sector in Saudi Arabia is projected to reach SAR 50 billion in future, driven by a 30% annual growth rate. This surge in online shopping is significantly boosting demand for freight transport services, as logistics companies strive to meet the needs of consumers expecting rapid delivery. The rise in digital payment solutions and mobile shopping platforms further enhances this trend, creating a robust environment for freight transport growth.
  • Infrastructure Development Initiatives:Saudi Arabia's Vision 2030 plan allocates SAR 1.5 trillion for infrastructure projects, including transport networks. The development of new roads, railways, and ports is expected to enhance freight capacity and efficiency. For instance, the King Abdulaziz Port expansion aims to increase container handling capacity by 50%, facilitating smoother logistics operations and attracting more freight transport investments to the region.
  • Government Investment in Logistics:The Saudi government is investing heavily in logistics, with plans to increase the logistics sector's contribution to GDP from 12% to 25% in future. In future, the government is expected to allocate SAR 10 billion specifically for logistics infrastructure improvements. This investment will enhance supply chain efficiency, reduce transit times, and ultimately support the growth of the freight transport market in the country.

Market Challenges

  • Regulatory Compliance Issues:The freight transport sector in Saudi Arabia faces significant regulatory compliance challenges, with over 200 regulations impacting operations. Companies must navigate complex customs procedures, which can lead to delays and increased costs. In future, the average time for customs clearance is expected to remain around 10 days, hindering the efficiency of logistics operations and affecting overall market competitiveness.
  • High Operational Costs:Operational costs in the Saudi freight transport sector are rising, with fuel prices averaging SAR 2.18 per liter in future. Additionally, labor costs have increased by 15% over the past two years due to a shortage of skilled workers. These rising costs are squeezing profit margins for logistics companies, making it challenging to maintain competitive pricing while ensuring service quality.

Saudi Arabia Freight Transport Market Future Outlook

The future of the Saudi Arabia freight transport market appears promising, driven by ongoing investments in infrastructure and technology. As the government continues to enhance logistics capabilities, the sector is expected to adapt to emerging trends such as automation and digitalization. Furthermore, the increasing focus on sustainability will likely lead to the adoption of greener transport solutions, positioning the market for significant growth in the coming years, particularly in rail and cold chain logistics.

Market Opportunities

  • Expansion of Rail Freight Services:The Saudi government plans to invest SAR 20 billion in rail infrastructure in future, aiming to double rail freight capacity. This expansion presents a significant opportunity for logistics companies to reduce costs and improve delivery times, making rail a more attractive option for shippers and enhancing overall market efficiency.
  • Adoption of Digital Freight Solutions:The digital freight market in Saudi Arabia is expected to grow to SAR 5 billion in future, driven by the increasing demand for real-time tracking and data analytics. Companies that invest in digital platforms can enhance operational efficiency, reduce costs, and improve customer satisfaction, positioning themselves favorably in a competitive landscape.

Scope of the Report

SegmentSub-Segments
By Transport Mode

Road Freight (Full-Truck-Load and Less-than-Truck-Load)

Maritime Freight

Air Freight

Rail Freight

By End-User Industry

Oil and Gas

Manufacturing

Wholesale and Retail Trade

Construction

Agriculture, Fishing, and Forestry

Mining and Quarrying

Others

By Geographic Region

Central Region (Riyadh)

Eastern Region (Petrochemical Clusters)

Western Region (Jeddah and Ports)

Northern Region

Southern Region

By Service Type

Freight Forwarding

Warehousing and Storage

Last-Mile Delivery

Logistics Management

Cold Chain Logistics

By Cargo Type

Perishable Goods

Non-Perishable Goods

Hazardous Materials

Containerized Cargo

Bulk Liquid Cargo

General Cargo

By Destination

Domestic

International (GCC and Beyond)

By Distance

Short Haul

Long Haul

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., Saudi Arabian General Investment Authority, Ministry of Transport)

Logistics and Freight Forwarding Companies

Shipping and Maritime Operators

Infrastructure Development Agencies

Customs and Border Control Authorities

Transport and Logistics Technology Providers

Real Estate Developers in Logistics Hubs

Players Mentioned in the Report:

Almajdouie Transportation

SMSA Express Transportation Company Ltd

Aramex

DHL Supply Chain

Kuehne + Nagel International AG

DB Schenker

FedEx Corporation

United Parcel Service Inc (UPS)

Agility Logistics

Gulf Agency Company (GAC)

Expeditors International of Washington Inc

DSV A/S

CEVA Logistics

Nippon Express Holdings Inc

National Shipping Company of Saudi Arabia (NSCSA)

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. Saudi Arabia Freight Transport Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 Saudi Arabia Freight Transport Market Overview

2.3 Definition and Scope

2.4 Evolution of Market Ecosystem

2.5 Timeline of Key Regulatory Milestones

2.6 Value Chain & Stakeholder Mapping

2.7 Business Cycle Analysis

2.8 Policy & Incentive Landscape


3. Saudi Arabia Freight Transport Market Analysis

3.1 Growth Drivers

3.1.1 Increasing E-commerce Activities
3.1.2 Infrastructure Development Initiatives
3.1.3 Strategic Location as a Trade Hub
3.1.4 Government Investment in Logistics

3.2 Market Challenges

3.2.1 Regulatory Compliance Issues
3.2.2 High Operational Costs
3.2.3 Limited Technological Adoption
3.2.4 Infrastructure Bottlenecks

3.3 Market Opportunities

3.3.1 Expansion of Rail Freight Services
3.3.2 Growth in Cold Chain Logistics
3.3.3 Adoption of Digital Freight Solutions
3.3.4 Increasing Demand for Sustainable Transport

3.4 Market Trends

3.4.1 Shift Towards Automation in Logistics
3.4.2 Rise of Last-Mile Delivery Services
3.4.3 Integration of AI and Big Data
3.4.4 Focus on Environmental Sustainability

3.5 Government Regulation

3.5.1 Implementation of New Freight Regulations
3.5.2 Safety and Compliance Standards
3.5.3 Incentives for Green Logistics
3.5.4 Customs and Trade Facilitation Policies

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


7. Saudi Arabia Freight Transport Market Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. Saudi Arabia Freight Transport Market Segmentation

8.1 By Transport Mode

8.1.1 Road Freight (Full-Truck-Load and Less-than-Truck-Load)
8.1.2 Maritime Freight
8.1.3 Air Freight
8.1.4 Rail Freight

8.2 By End-User Industry

8.2.1 Oil and Gas
8.2.2 Manufacturing
8.2.3 Wholesale and Retail Trade
8.2.4 Construction
8.2.5 Agriculture, Fishing, and Forestry
8.2.6 Mining and Quarrying
8.2.7 Others

8.3 By Geographic Region

8.3.1 Central Region (Riyadh)
8.3.2 Eastern Region (Petrochemical Clusters)
8.3.3 Western Region (Jeddah and Ports)
8.3.4 Northern Region
8.3.5 Southern Region

8.4 By Service Type

8.4.1 Freight Forwarding
8.4.2 Warehousing and Storage
8.4.3 Last-Mile Delivery
8.4.4 Logistics Management
8.4.5 Cold Chain Logistics

8.5 By Cargo Type

8.5.1 Perishable Goods
8.5.2 Non-Perishable Goods
8.5.3 Hazardous Materials
8.5.4 Containerized Cargo
8.5.5 Bulk Liquid Cargo
8.5.6 General Cargo

8.6 By Destination

8.6.1 Domestic
8.6.2 International (GCC and Beyond)

8.7 By Distance

8.7.1 Short Haul
8.7.2 Long Haul

9. Saudi Arabia Freight Transport Market Competitive Analysis

9.1 Market Share of Key Players

9.2 Cross Comparison of Key Players

9.2.1 Company Name
9.2.2 Company Size (Large, Medium, or Small)
9.2.3 Revenue Growth Rate (CAGR %)
9.2.4 Fleet Size and Capacity
9.2.5 Fleet Utilization Rate (%)
9.2.6 Service Coverage (Domestic/International)
9.2.7 Technology Integration (Telematics, GPS, Fleet Management)
9.2.8 Pricing Strategy (Premium/Competitive/Value)
9.2.9 Market Penetration Rate (%)
9.2.10 Customer Satisfaction and Retention Rate (%)

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis

9.5 Detailed Profile of Major Companies

9.5.1 Almajdouie Transportation
9.5.2 SMSA Express Transportation Company Ltd
9.5.3 Aramex
9.5.4 DHL Supply Chain
9.5.5 Kuehne + Nagel International AG
9.5.6 DB Schenker
9.5.7 FedEx Corporation
9.5.8 United Parcel Service Inc (UPS)
9.5.9 Agility Logistics
9.5.10 Gulf Agency Company (GAC)
9.5.11 Expeditors International of Washington Inc
9.5.12 DSV A/S
9.5.13 CEVA Logistics
9.5.14 Nippon Express Holdings Inc
9.5.15 National Shipping Company of Saudi Arabia (NSCSA)

10. Saudi Arabia Freight Transport Market End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Ministry of Transport and Logistics
10.1.2 Ministry of Commerce
10.1.3 Ministry of Industry and Mineral Resources
10.1.4 Ministry of Health

10.2 Corporate Spend on Infrastructure & Logistics

10.2.1 Investment in Logistics Infrastructure
10.2.2 Spending on Transportation Services
10.2.3 Budget Allocation for Freight Transport
10.2.4 Corporate Partnerships with Logistics Providers

10.3 Pain Point Analysis by End-User Category

10.3.1 Delays in Delivery
10.3.2 High Freight Costs
10.3.3 Lack of Transparency in Pricing
10.3.4 Inadequate Infrastructure

10.4 User Readiness for Adoption

10.4.1 Technology Adoption Levels
10.4.2 Training and Skill Development Needs
10.4.3 Investment in Modern Freight Solutions
10.4.4 Awareness of Sustainable Practices

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 Measurement of Cost Savings
10.5.2 Evaluation of Service Quality Improvements
10.5.3 Expansion of Service Offerings
10.5.4 Long-term Partnerships with Providers

11. Saudi Arabia Freight Transport Market Future Size, 2025-2030

11.1 By Value

11.2 By Volume

11.3 By Average Selling Price


Go-To-Market Strategy Phase

1. Whitespace Analysis + Business Model Canvas

1.1 Market Gaps Identification

1.2 Business Model Development


2. Marketing and Positioning Recommendations

2.1 Branding Strategies

2.2 Product USPs


3. Distribution Plan

3.1 Urban Retail vs Rural NGO Tie-ups


4. Channel & Pricing Gaps

4.1 Underserved Routes

4.2 Pricing Bands


5. Unmet Demand & Latent Needs

5.1 Category Gaps

5.2 Consumer Segments


6. Customer Relationship

6.1 Loyalty Programs

6.2 After-sales Service


7. Value Proposition

7.1 Sustainability

7.2 Integrated Supply Chains


8. Key Activities

8.1 Regulatory Compliance

8.2 Branding

8.3 Distribution Setup


9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy

9.1.1 Product Mix
9.1.2 Pricing Band
9.1.3 Packaging

9.2 Export Entry Strategy

9.2.1 Target Countries
9.2.2 Compliance Roadmap

10. Entry Mode Assessment

10.1 JV

10.2 Greenfield

10.3 M&A

10.4 Distributor Model


11. Capital and Timeline Estimation

11.1 Capital Requirements

11.2 Timelines


12. Control vs Risk Trade-Off

12.1 Ownership vs Partnerships


13. Profitability Outlook

13.1 Breakeven Analysis

13.2 Long-term Sustainability


14. Potential Partner List

14.1 Distributors

14.2 JVs

14.3 Acquisition Targets


15. Execution Roadmap

15.1 Phased Plan for Market Entry

15.1.1 Market Setup
15.1.2 Market Entry
15.1.3 Growth Acceleration
15.1.4 Scale & Stabilize

15.2 Key Activities and Milestones

15.2.1 Activity Planning
15.2.2 Milestone Tracking

Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Analysis of national transport statistics from the Saudi Arabian Ministry of Transport
  • Review of logistics and freight transport reports from industry associations
  • Examination of economic indicators and trade data from the Saudi Arabian General Authority for Statistics

Primary Research

  • Interviews with logistics executives from major freight companies operating in Saudi Arabia
  • Surveys targeting supply chain managers in key industries such as oil, retail, and manufacturing
  • Field interviews with transport operators and freight forwarders to gather insights on operational challenges

Validation & Triangulation

  • Cross-validation of findings through multiple data sources including government reports and industry publications
  • Triangulation of qualitative insights from interviews with quantitative data from surveys
  • Sanity checks conducted through expert panel reviews comprising industry veterans and academic professionals

Phase 2: Market Size Estimation1

Top-down Assessment

  • Estimation of total freight transport market size based on national GDP and logistics expenditure ratios
  • Segmentation of the market by transport mode (road, rail, air, and sea) and industry verticals
  • Incorporation of government initiatives aimed at enhancing logistics infrastructure and efficiency

Bottom-up Modeling

  • Collection of operational data from leading freight transport companies to establish volume benchmarks
  • Cost analysis based on service pricing models across different transport modes
  • Calculation of market size using a volume x cost approach for each transport segment

Forecasting & Scenario Analysis

  • Development of forecasting models using historical growth rates and economic indicators
  • Scenario analysis based on potential regulatory changes and shifts in trade patterns
  • Creation of baseline, optimistic, and pessimistic forecasts through 2030 to account for market volatility

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Road Freight Transport100Logistics Managers, Fleet Operators
Air Cargo Services60Airline Cargo Managers, Freight Forwarders
Maritime Freight Operations50Port Authorities, Shipping Line Executives
Rail Freight Services40Railway Logistics Coordinators, Operations Managers
Cold Chain Logistics40Supply Chain Directors, Temperature-Controlled Transport Managers

Frequently Asked Questions

What is the current value of the Saudi Arabia Freight Transport Market?

The Saudi Arabia Freight Transport Market is valued at approximately USD 32 billion, reflecting significant growth driven by the country's strategic logistics position, increased trade activities, and substantial infrastructure investments.

What are the main drivers of growth in the Saudi Arabia Freight Transport Market?

Which cities are the primary hubs for freight transport in Saudi Arabia?

What is the National Transport and Logistics Strategy (NTLS) in Saudi Arabia?

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