Saudi Arabia’s delivery sector experienced substantial growth in 2024, with order volume surging 27.2 percent to exceed 290 million, according to recent data released by the General Authority for Statistics (GASTAT). This expansion reflects increasing consumer reliance on e-commerce and rapid logistical improvements within the Kingdom. The report details significant increases in both the number of drivers and the capacity of logistics infrastructure nationwide.
The GASTAT findings, published Thursday, reveal a total of over 442,000 active drivers – a combined figure of Saudi and non-Saudi nationals – supporting the booming delivery landscape. Saudi drivers numbered more than 140,000, a 21 percent increase year-over-year, while non-Saudi drivers exceeded 302,000, representing a 5 percent rise. This growth underscores the sector’s importance as an employment generator.
Growth in Saudi Arabia’s Logistics and Delivery Sector
The increase in delivery services is closely linked to broader investments in Saudi Arabia’s logistics capabilities. The number of active logistics centers rose to 23 in 2024, boasting a total area of 34.6 million square meters, up from 22 centers the previous year. This expansion is a key component of the Kingdom’s Vision 2030 plan, which aims to diversify the economy and establish Saudi Arabia as a global logistics hub.
Regional Distribution of Logistics Centers
The Makkah region currently leads in logistics center capacity, housing six centers covering 20.4 million square meters. These centers are categorized by function, with industrial cities accounting for the largest share at 44.1 percent (15 centers). Inland distribution centers follow with nine centers, and port logistics centers with four, indicating a strategic focus on connecting production, distribution, and international trade.
Alongside logistics centers, the warehousing sector also saw considerable expansion. GASTAT reported 12,200 licensed commercial warehouses with a combined area of 22 million square meters. The Riyadh region dominates this segment, with 6,763 warehouses and 10.7 million square meters of space. A further 1,189 construction warehouse licenses were issued, adding 7.5 million square meters of capacity.
The volume of goods moving through the Kingdom’s transportation networks also increased significantly. Over 331 million tons of cargo were handled by sea, while land ports processed 25.7 million tons of international freight. Rail freight reached 15.6 million tons domestically, and air cargo accounted for 1.2 million tons of inbound, outbound, and transit shipments. This demonstrates the interconnectedness of various transport modes in supporting the delivery ecosystem.
Efficiency gains were also reported. The average delivery time decreased from 45 to 35 minutes in 2024, suggesting improvements in route optimization and last-mile logistics. Furthermore, the on-time delivery rate for parcel and postal services rose to 96 percent, up from 94 percent in 2023, indicating enhanced reliability for consumers.
The number of valid customs clearance licenses also increased across all port types. Seaports saw a 26.1 percent rise, reaching 1,179 licenses by year-end. Land and air ports experienced increases to 465 and 722 licenses respectively, streamlining the import and export process. This growth in licensing supports the increased cargo volumes and facilitates smoother international trade.
The parcel and postal services sector itself experienced a 28.6 percent jump in shipment volume, exceeding 180 million in 2024 compared to over 140 million the previous year. The average shipment delivery time remained stable at two days, while the improved on-time delivery rate further solidifies the sector’s performance. These figures highlight the continued shift towards online shopping and the demand for reliable parcel services.
These developments in the logistics and delivery sectors are also impacting related industries, such as packaging and technology. Demand for innovative packaging solutions and logistics software is expected to rise as companies seek to optimize their supply chains and meet growing consumer expectations. The growth in e-commerce is also driving demand for warehousing and fulfillment services.
Looking ahead, GASTAT is expected to release further detailed analysis of the warehousing and logistics sector in the coming months. Industry stakeholders will be closely monitoring these reports for insights into emerging trends and potential areas for investment. The sustainability of this growth will depend on continued infrastructure development, regulatory support, and the adoption of advanced technologies within the logistics chain.
The future trajectory of the sector will also be influenced by global economic conditions and shifts in consumer behavior. Continued monitoring of key indicators, such as delivery times, on-time rates, and cargo volumes, will be crucial for assessing the long-term impact of these developments on the Saudi Arabian economy.
