Project will be aligned with kingdom's grand Vision 2030 for economic diversification

A logistics special economic zone within King Salman International Airport in Riyadh is scheduled to emerge thanks to ewpartners, the first international private equity firm to establish Saudi-Asia cross border investment platform, and King Salman International Airport Development Company (KSIADC).

The initiative is aimed at enhancing growth and operational excellence in logistics within the Kingdom of Saudi Arabia, contributing to the kingdom's goal of developing into a global logistics hub linking three continents and improving trade connections between Saudi Arabia, China and the wider Asian continent, according to Jerry Li, founder and managing partner of ewpartners, formerly eWTP Arabia Capital.

The announcement was made on Oct 13 at the inaugural Global Logistics Forum 2024, hosted by Saudi Arabia's Ministry of Transport and Logistics Services. The SEZ, to be known as the "KSA-Sino Logistics Special Economic Zone", is to be developed in four phases over 12 years, in alignment with Riyadh's grander Vision 2030 economic diversification plan.

The Special Economic Zone is supported by the Ministry of Transport and Logistics and is one of several recently announced initiatives designed to strengthen supply chains and streamline trade, e-commerce and investment in line with the Kingdom's Vision 2030. The SEZ within the King Salman International Airport in Riyadh is expected to cover 4 square kilometers in total.

The zone aims to create an integrated ecosystem that "will encompass global enterprises, logistics facilities, supply chains, and high-end manufacturing", significantly bolstering Saudi Arabia's regional and global distribution capabilities, said Li. Backed by the Public Investment Fund (PIF) and headquartered in Riyadh, ewpartners, formerly eWTP Arabia Capital, has been active in Saudi Arabia since 2017.

Saleh bin Nasser Al-Jasser, minister of the Ministry of Transport and Logistics Services, said at the forum that Saudi Arabia has long been at the crossroads of global trade. The vital facilities were key to realizing Vision 2030 with over 1 trillion Saudi riyals ($267 billion) set for investment by 2050, of which about 200 million riyals had already been deployed.

"Current disruptions highlight the fundamental needs to ensure the safety and security of the supply chain and the seamless functioning of the backbone of global commerce, so economies thrive, goods get delivered, and people are connected," he was quoted as saying by Arab News.

The project site will include a logistics or light industrial park and an international commercial park, which will be focused on providing a hub for global businesses to establish their presence, facilitating international trade and attracting more foreign direct investment.

It would also include a living space and supporting facilities to offer comprehensive services necessary for professionals' living and working needs, enhancing Saudi Arabia's appeal as an investment destination.

Marco Mejia, acting CEO of KSIADC, said the partnership project marked a significant step in "delivering on their vision" to establish King Salman International Airport as a leading international logistics hub serving regional and global logistics companies and supporting Saudi Arabia's trade expansion.

By joining forces with ewpartners, he said, they are poised to enhance logistics infrastructure, boost efficiency, and create new opportunities for economic growth in Saudi Arabia and the region.

The King Salman International Airport, one of the world's largest, is projected to welcome 100 million passengers in 2030. With sustainability at its core, the airport will be designed to achieve LEED Platinum certification for new build development, the highest level of green design and building certification.

Jerry Li of ewpartners said Saudi Arabia's vision to establish the major logistics hub has been a cornerstone of ewpartners' presence in the kingdom.

"After nearly five years of dedication to this initiative, our expertise in technology-driven solutions and cross-border investment, coupled with the strategic location of King Salman International Airport – positioned as a gateway between Asia, Africa and Europe – will unlock immense potential for cross-border trade," Li said.

He noted it will also pave the way for new growth and innovation in the kingdom's logistics and e-commerce sectors.

"We know first-hand that there are thousands of top companies from China and the (Asia-Pacific) region eager to build a base in the region to be closer to their global customer base," said Li, adding that through teaming up with the right partners, they are confident the project will become a "world-class platform" for both local and international firms.

The project also envisions international companies establishing their manufacturing capabilities within the zone and collaborating with Saudi enterprises to produce locally for distribution to markets around the world, embodying the "Made in Saudi" program, which supports Saudi businesses to boost exports to key markets.

The SEZ is likely to attract thousands of wholesalers and retailers and around 200 light industrial manufacturers from China and wider Asia. The hub will also enable expansion to other markets beyond the region.