SAUDI ARABIA REPORT
Logistics and Supply Chain sector in high gear in Saudi Arabia Kingdom announces stimulus of US$ 1.3tn to jumpstart the economy
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s the Crown Prince seeks to prepare the Kingdom’s economic future, HRH Mohammed Bin Salman Bin Abdul-Aziz Al Saud has laid out a road map for the country dubbed ‘Vision 2030’. The plan aims to transform Saudi Arabia by liberalising social norms and improving government services whilst reducing the dependence on oil income which has been the mainstay of the economy over the past several decades. Global Supply Chain spoke exclusively to J Sivan, Senior Consultant, Supply Chain &
28 JUNE 2021
Logistics Practice, Frost & Sullivan on the state of the logistics and supply chain industry in Saudi Arabia. Global Supply Chain (GSC): Briefly, how would you characterize the state of the current Saudi Arabian economy? J. Sivan (JS): Covid-19 and the plummeting oil prices are weighing down the Saudi Arabian economy. With the advent of the pandemic, the demand for petroleum products has further reduced due to lack of movement on account of lockdowns in countries worldwide. Regional tourism has been
drastically affected. However, with the Vision 2030 and National Development Program, the government has made efforts to reduce the dependency on oil, diversify its economy, and has an ambitious plan on infrastructure development, which has fuelled the growth of many industries even in times of crisis. Especially the supply chain and logistics industry is out in high drive in connecting resources for infrastructure development. GSC: The Saudi economy has been negatively impacted by a double whammy—the plummeting of oil prices /