Emerging Markets for Global Trade: Saudi Arabia and Beyond

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It’s well-known that the growth and development strategies of countries either develop or complicate the commercial activities of the companies operating in that region.

One of the examples of this that positively affects world trade is the National Transport and Logistics Strategy announced by Saudi Arabia about two years ago. The National Transport and Logistics Strategy is one of the examples that positively affects world trade and is one of the reasons for the country’s momentum gained a year after the pandemic.

Figures cited by the World Bank, UNCTAD and other impartial research shows that Saudi Arabia’s trade has expanded considerably after the pandemic. This increasing and expanding trade volume is encouraging other commercial parties in the world. For this reason, the parties that have commercial relations with this region have increased their investments or made changes in their current activities. This has been made possible by the successful progress of Saudi Arabia, its modernization and expansion of ports and terminals in the country.

UNCTAD – LINER SHIPPING CONNECTIVITY INDEX – HANDBOOK OF STATISTICS 12 DEC 2022

This strategy will strengthen the human and technical capacities in the transport and logistics sector in the country.

As the trade stagnation in the pandemic began to fade and world trade expanded, port congestion decreased, and trade started to become more fluid than in the past two years. There have been remarkable port and commercial developments in Saudi Arabia observed recently. Hapag-Lloyd, in particular, put additional services in the area. Last week, the Saudi Ports Authority MAWANI announced that Hapag had added the Jubail port to its list of commercial ports and announced an additional Jubail port to Indian Gulf service route. MSC added the Jubail port to its India-East Med service shipping route earlier this year. Also, Jeddah Islamic Port has been added to India – America Express Service (INDAMEX), a route jointly operated by Hapag-Lloyd and CMA CGM.

All these developments will strengthen the country’s relationship with the global economy, and its geographical position in the middle of three continents will enable it to diversify the regional economy by establishing an advanced logistics-service industry, establishing high-quality service systems and applying competitive practices. It will also provide opportunities for business models that will increase the efficiency and sustainability of the logistics sector.

The United Arab Emirates is another country seeing strong investment activity.

Compared to previous years, it may be possible to say that especially Saudi Arabia’s neighbor, the United Arab Emirates, has received many investments in recent years and considering the strategic locations of two countries on the Arabian peninsula, Africa and Central Asia will have a larger share than commercial activities.

This expanding and developing market, which also increases the appetence of U.S. companies and exporters, attracts great attention. This is especially true considering that the U.S. is the second-biggest country from which Saudi Arabia imports the most.

At MTS Logistics, we announced that we opened our Dubai office last year. Our activity in this region will continue rapidly and confidently.

The world has begun to heal its wounds over the past few years. Trade, by its nature, creates and will create new routes. At MTS Logistics, we will continue to support our customers who will have commercial relations with this region with all our experience and professionalism.