The inauguration took place in Diriyah—home to Saudi heritage—where the transition was formally celebrated in the presence of H. E. Eng. Saleh bin Nasser Al‑Jasser, Minister of Transport and Logistics Services and Chairman of the Transport General Authority; H. E. Dr. Rumaih bin Mohammed Al‑Rumaih, Vice Minister and Acting President of the Authority; alongside FedEx’s global leadership including Raj Subramaniam, President and CEO; Richard Smith, COO International and CEO Airline; and Kami Viswanathan, President for the Middle East, the Indian Subcontinent and Africa.
FLIGHT, NETWORK, AND INFRASTRUCTURE
With the launch of its first dedicated flight into the Kingdom—serving both the United States and Europe—FedEx has become the only express‑logistics provider offering nonstop western air connectivity to Saudi Arabia. This newly established route, expected to operate six times per week, spans key global hubs, improving transit times and trade linkages.
Simultaneously, the company announced development of a regional hub at Riyadh’s King Salman International Airport. Once operational, this hub is set to link regional markets such as Bahrain, Kuwait and Qatar, elevating Saudi Arabia’s role as a distribution centre.
OPERATIONS AND LOGISTICS
Under its direct‑serve model, FedEx will now assume full control over pickup, delivery, and customs clearance throughout the Kingdom, utilising four gateways and four stations supported by advanced digital tools for end‑to‑end visibility and efficiency.
The newly launched FedEx Logistics division brings air, road and ocean freight services, transit cargo support and customs‑broking under one umbrella. This suite of offerings enhances connectivity across the GCC, South Asia and Africa, building more resilient and streamlined supply chains.
ECONOMIC CONTEXT AND VISION 2030 ALIGNMENT
Economic indicators signal growing demand for advanced logistics infrastructure. Saudi Arabia posted a trade surplus of US $16.8 billion in Q1 2025—up 52 percent from Q4 2024—highlighting the urgency of infrastructure expansion.
At the ceremony, H. E. Al‑Jasser praised the move as evidence of the Kingdom’s increasing attractiveness as a global logistics hub and its welcoming investment climate, adding that the scale of companies establishing direct operations points to sustained global confidence in Vision 2030’s transformation agenda.
Richard Smith emphasised the importance of Saudi Arabia in FedEx’s network: “By expanding in the Kingdom, we are broadening our reach and creating faster, more dependable trade routes,” indicating the strategic nature of the investment.
Kami Viswanathan noted that the direct‑serve model combines modern infrastructure, digital innovation and integrated solutions, enabling businesses in the Kingdom and the wider region to compete globally.
WIDER ECONOMIC IMPACT
Further analysis suggests that FedEx’s $1.5 billion investment in the Riyadh hub is a catalyst for broader logistics transformation under Vision 2030. This expansion is expected to support Saudi Arabia’s trillion‑dollar logistics strategy and contribute significantly to the diversification of its economy.
The broader logistics sector in the Kingdom is projected to grow at nearly 6 percent annually, potentially reaching US $38.8 billion by 2026. That trajectory is backed by nearly SR 10 billion in infrastructure plans and a surge in FDI inflows, showing growing investor confidence.
Topics
Saudi Arabia