Saudi ports anchor their position on global trade routes

The Kingdom wants to become a global logistics hub bridging three continents, so it is upgrading and expanding its ports on both the Red Sea and the Arabian Gulf.

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Lighthouse at the port of Jeddah, Saudi Arabia.

Saudi ports anchor their position on global trade routes

Turki Harbi

last update on 10 Jul 2025

With conflict in the Middle East, a major war in Ukraine, and global trade disputes between both friends and enemies, countries are keener than ever for competitive advantage. With that in mind, Saudi Arabia may have spotted an opportunity in an industry long-established as the backbone of world commerce: maritime shipping.

The Kingdom’s reputation for reliability extends to its ports, strategically situated at the crossroads between Asia, Africa, and Europe, with coastlines along the Arabian Gulf and the Red Sea, which are both important for maritime trade.

According to the Saudi Ports Authority, also known as Mawani, roughly 13% of global trade passes through the Kingdom’s maritime facilities, identified as a key area for further growth, with port infrastructure playing a critical role in the goals of Vision 2030—Saudi Arabia’s national transformation plan, an aim of which is to further establish the Kingdom as a global logistics hub.

Increasingly connected

The vision is of regional integration and cooperation with neighbouring countries, with increased revenue from Saudi ports contributing to the Kingdom’s economic diversification. Currently around 70% of Saudi exports leave via Saudi ports and there are official targets to increase the share.

Saudi ports already link to more than 30 global destinations, but to support the expansion ambitions, the government has increased and upgraded port facilities through the Saudi Global Ports Group, an affiliate of the Saudi sovereign wealth fund, the Public Investment Fund (PIF). A key initiative of this includes the expansion of the King Abdulaziz Port in Dammam.

Three new shipping services have recently been added to the port, including one for Taiwanese-headquartered shipping company Evergreen, which was added in May, and two for European shipping line MSC. The increased handling capacity connects Dammam to Jubail Commercial Port in Saudi Arabia.

The Kingdom is strategically situated at the crossroads between Asia, Africa, and Europe, with coastlines along the Arabian Gulf and the Red Sea

It also connects the Kingdom to Jebel Ali and Abu Dhabi in the UAE; Hamad Port in Qatar; Nhava Sheva, Mundra and Vizhinjam in India; Sines in Portugal; Valencia, Barcelona and Malaga in Spain; Gioia Tauro and Genoa in Italy; Bahrain's Khalifa Bin Salman Port; Colombo in Sri Lanka, Vung Tau and Haiphong in Vietnam; Nansha, Yantian, Ningbo, Shanghai, and Qingdao in China; Busan in South Korea; Seattle in the United States; and Vancouver and Prince Rupert in Canada.

Major upgrades

On the Kingdom's western coast, Jeddah Islamic Port is the Kingdom's largest on the Red Sea. Like Dammam, it too is being upgraded, with enhanced logistics integrated into international trading systems. The plan is to list the port on the London Metal Exchange as a hub for copper and zinc, aiming to become a key metals centre in the Middle East.

Shutterstock — Gantry cranes unload container ships on a sunny summer day. Jeddah port, Saudi Arabia.

In a major move, global shipping giant Maersk inaugurated the region's largest integrated logistics zone at Jeddah, investing $347mn. The port's northern section was expanded in collaboration with Red Sea Gateway Terminal for $267mn, doubling the terminal's area from 700,000 to 1.5 million square metres, and more than doubling its handling capacity, making Jeddah a key gateway on the Red Sea trade route.

Early in 2025, Saudi authorities added new shipping routes in partnership with Hapag-Lloyd and Maersk, linking Jeddah, Dammam, and Jubail to ports such as Port Said in Egypt, Tangier in Morocco, Algeciras in Spain, Aqaba in Jordan, Jebel Ali in the United Arab Emirates, Mundra and Pipavav in India, and Salalah in Oman.

Logistics centres

Saudi Arabia is also extending its port network into emerging coastal cities, most notably NEOM, Vison 2030's flagship development project on the Red Sea. NEOM's port benefits from its proximity to the Suez Canal and is one of the first stops for cargo vessels after the Canal. The first container terminal at the port is scheduled to open next year, operating with fully automated cargo handling systems.

On the Kingdom's western coast, Jeddah Islamic Port is the largest Saudi port on the Red Sea. Like Dammam, it too is being upgraded

In June, NEOM's Oxagon logistics centre received its first set of fully automated gantry cranes, remotely controlled to enhance efficiency. By 2026, NEOM's fully automated container terminal will offer one of the world's most advanced maritime logistics platforms.

This is part of a broader strategy by the Saudi Ports Authority, which introduced 34 maritime services in the past year alone. It has also signed agreements with the private sector worth $773mn to establish eight industrial and logistics zones, including the massive Maersk investment in Jeddah.

AFP — A Saudi boat patrolling by an oil tanker at the port of Ras al-Khair, about 185km north of Dammam, in Saudi Arabia's eastern province.

Overall, Saudi investments in port-related logistics zones are at $2.67bn across 18 logistics hubs, and last year, the Kingdom launched its first rail-based freight bridge linking Jubail Port to the Riyadh Dry Port through the Eastern Railway Network, initially transporting 78 containers, with a future handling capacity of 140.

Investment in capabilities

PIF plays a central role in expanding both maritime and air cargo capabilities. Through its role in Saudi Global Ports, it oversees container terminal development and expansion projects and helps scale capacity while introducing cutting-edge technologies. A government-led policy and regulatory framework has enabled this transformation.

Under the national transport strategy launched by in 2021, the Kingdom has been open to investment in areas like port expansions through privatisation and development deals. In 2023, Saudi Arabia unveiled a masterplan for 59 logistics centres covering more than 100 million square metres across the country.

Getty Images — Saudi cargo ship Bahri Yanbu at sunset waiting to enter the port of Le Havre.

Last month, the Ministry announced the privatisation of eight ports over 20-year contracts worth $533mn (signed with Saudi Global Ports for eastern coast terminals and the Red Sea Company for western ports). Transport Minister Saleh bin Nasser Al-Jasser said $4.27bn in private contracts had already been secured.

China, which is a major importer of Saudi oil, has maintained a strategic presence in Saudi logistics as part of Beijing's Belt and Road Initiative, notably through plans to develop an industrial zone at Jazan Port on the Red Sea. Jazan is a modern commercial port built with Chinese industrial expertise.

While it is still maturing, Saudi Arabia's port sector is rapidly evolving, with year-on-year increases of around 13% and attracting diverse investment opportunities ranging from terminal concessions to integrated logistics zones. The rapid development of the past three years have solidified Saudi ports' position in global supply chains.

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