By Khalid Aldosari, Chief of Shared Services, AJEX Logistics Services

Saudi Arabia’s Vision 2030 strategy, the Kingdom’s blueprint for economic diversification and success, seeks to transform the nation into a global hub for trade and tourism. As part of this vision, the Kingdom is laying the foundation for sustained economic growth by positioning itself as a premier destination for high-profile sporting and commercial events, underpinned by world-class logistics capabilities.

With successful bids to host the World Expo 2030 and the FIFA World Cup 2034, Saudi Arabia is now gearing up to welcome millions of visitors from around the globe for two colossal events that will support its vision of a dynamic and thriving economy. The influx of tourists for the World Cup and other international events will not only boost local economies in the short term but also create vital jobs and support infrastructure development in support of the country’s long-term success.

Events such as the FIFA World Cup 2034 and World Expo 2030 are expected to inject billions of dollars into the Saudi economy. Previous World Cups, for instance, have significantly boosted host countries’ GDPs, with Qatar’s 2022 World Cup adding 1% to the country’s GDP. The influx of international visitors will stimulate various sectors, including hospitality, retail, and transportation, generating thousands of jobs, and fostering economic diversification.

Infrastructure Developments for World-Class Events

To host these colossal events, Saudi Arabia must develop world-class event facilities supported by robust transport networks, ample accommodation, and related infrastructure to ensure a smooth and safe visitor experience. Advanced logistics capabilities will be vital to ensure not only the seamless movement of goods, services, and people during the events themselves but also to the construction of all necessary facilities and infrastructure.

Saudi Arabia is rising to the challenge with rapid completion of projects like the Kingdom Arena, a 300,000-capacity sporting stadium in Riyadh, completed in just 180 days. The Kingdom is also developing stadiums at its giga-projects, including the Prince Mohammed bin Salman Stadium in Qiddiya, a development which will feature multiple theme parks, entertainment centers, and sports facilities. Additionally, it plans to develop sporting facilities at NEOM, the $500 billion smart city set to span over 10,000 square miles.

The scale of these giga-projects demands meticulous planning and coordination of various logistical elements. This includes everything from transporting construction materials to managing complex supply chains. The logistics network must efficiently handle the influx of materials, machinery, and workforce, ensuring timely and coordinated deliveries that maintain project timelines and budgets while minimizing downtime. These developments, emblematic of the Kingdom’s swift progress, showcase its capability to handle large-scale projects efficiently and effectively, highlighting Saudi Arabia's logistical excellence.

World-Class Logistics Capabilities

Saudi Arabia’s logistics infrastructure, including advanced airports, ports, and road networks, is crucial to the success of these mega-events. Today, it already boasts world-class facilities, including the largest airport in the world–King Fahd International Airport in Dammam, 250 miles northeast of Riyadh, and King Abdullah Port, one of the world's fastest-growing ports strategically located on the Red Sea, which plays a crucial role in global maritime trade. The World Bank's Logistics Performance Index highlights Saudi Arabia's efficiency in customs, infrastructure, and international shipments.

Complementing its air and sea capabilities is Saudi Arabia's extensive road network, crucial for seamless connectivity within the country and to neighboring markets. The Kingdom boasts over 200,000 kilometers of roadways, connecting major cities and providing access to railways, ports, and airports. The Kingdom also continues to invest in its rail networks, with plans to expand its current 3,650 km network by an additional 8,000 kilometers to connect the Red Sea and Arabian Gulf ports.

The kingdom's well-developed transport networks has positioned Saudi Arabia as a key player in global logistics, supporting growing domestic and international commerce. Logistics players such as AJEX Logistics Services have capitalized on this growth, expanding networks and capabilities to manage complex supply chains and deliver efficient logistics solutions. For instance, AJEX involvement in major e-commerce distribution and industrial solutions across the Middle East underscores its capacity to handle large-scale logistical demands. This experience positions AJEX as a critical partner in ensuring the smooth execution of Saudi Arabia's mega-events, such as the World Expo 2030 and FIFA World Cup 2034.

Creating a Lasting Legacy

Saudi Arabia’s investment in logistics extends beyond immediate benefits; it aims to create a lasting economic legacy. The construction of state-of-the-art stadiums and infrastructure projects not only demonstrates the Kingdom's ability to execute large-scale developments efficiently but also enhances its global reputation. The logistical expertise developed through these projects will attract future events and business opportunities, fostering a cycle of growth and innovation.

Moreover, the infrastructure developed for these mega-events will have long-term benefits. Enhanced transportation networks, for example, will facilitate easier and more efficient movement of people and goods across the country. This improved infrastructure will attract more tourists and investors, further boosting the economy. The creation of job opportunities during both the construction and operational phases of these projects will stimulate various sectors and contribute to economic diversification. According to the International Monetary Fund (IMF), improved infrastructure can increase a country's GDP by up to 1.5% over the long term, indicating substantial potential gains for Saudi Arabia.

Saudi Arabia as a Global Hub

Saudi Arabia is swiftly emerging as a global hub, driven by visionary leadership and ambitious projects. The Kingdom's investment in advanced logistics infrastructure is pivotal in ensuring the success of major global events like the World Expo 2030 and FIFA World Cup 2034.

As Saudi Arabia continues to build its legacy, logistics will remain central to its journey, showcasing the nation's ability to host the world and lead on the global stage. Logistical efficiency is foundational not only for supporting events but also for sustained economic growth, positioning Saudi Arabia as a premier destination for global tourists and investors. By leveraging its logistical expertise, Saudi Arabia is not just preparing for the future; it is actively shaping it, turning Vision 2030 into a vibrant reality.