RIYADH — Saudi Arabia’s maritime transport sector experienced substantial expansion in 2025, registering a 32 percent growth rate compared to the previous year. This surge propelled the Kingdom to the second-highest growth position globally among G20 nations, solidifying its ambitions as a key player in international trade and logistics. The performance builds on already positive trends, with 6.4 percent growth recorded in 2024 compared to 2023, according to the Transport General Authority (TGA).
The advancement, reported at the beginning of 2025, positions Saudi Arabia strategically within a rapidly evolving global shipping landscape. This growth directly impacts the nation’s supply chain capabilities and strengthens its position as a regional and international trade facilitator. Officials highlight the sector’s increasing importance to the national economy as trade volumes continue to rise.
Driving Growth in Saudi Arabia’s Maritime Transport Sector
Several converging factors contributed to the impressive growth of Saudi Arabia’s maritime transport sector. Proactive governmental policies, significant investment in port infrastructure, and modernized regulations have all played a role. The kingdom’s strategic geographic location, bridging key trade routes between Asia, Europe, and Africa, provides a natural advantage.
Regulatory and Operational Improvements
The TGA has been instrumental in streamlining processes and fostering a more attractive business environment. These improvements encompass facilitations for vessel registration, cargo handling, and overall port operations. They have also focused on enhancing safety and security measures in line with international standards.
Investment in Infrastructure
Saudi Arabia has committed substantial funds to modernize and expand its major seaports, including King Abdullah Port, Jeddah Islamic Port, and Dammam’s King Abdulaziz Port. Such investments aim to increase capacity, reduce turnaround times, and accommodate larger vessels. This positions the kingdom to handle growing trade volumes effectively. Saudi Export details some of these ongoing port modernization projects.
National Transport and Logistics Strategy
The growth in the maritime transport sector is directly aligned with the ambitious National Transport and Logistics Strategy launched in 2021. This strategy aims to transform Saudi Arabia into a global logistics hub, diversifying the economy away from its reliance on oil and gas. A key component of this vision involves leveraging the nation’s coastal access to facilitate seamless movement of goods.
The increase in fleet size is a direct consequence of these wider strategic goals. Larger fleets enable increased cargo capacity and greater operational flexibility, allowing Saudi Arabia to capitalize on rising global demand for shipping services. The increased capacity also supports the volume of goods associated with the Kingdom’s Vision 2030 development projects.
However, the global shipping industry remains subject to cyclical fluctuations. External factors like geopolitical tensions, fluctuating fuel prices, and supply chain disruptions can introduce volatility. Despite this, Saudi Arabia appears well-positioned to weather potential challenges due to its strategic investments and proactive policy-making.
Additionally, the Kingdom’s push towards digitalization and the adoption of smart port technologies are expected to further enhance efficiency and competitiveness. These technologies, including automated cargo handling systems and data analytics platforms, aim to optimize port operations and improve supply chain visibility. The focus on technology also supports sustainability goals, reducing environmental impact through optimized processes.
Meanwhile, regional competition in the maritime transport sector is intensifying. Neighboring countries, such as the UAE and Oman, are also investing heavily in their port infrastructure and logistics capabilities. Saudi Arabia’s success will depend on its ability to differentiate itself through superior service quality, competitive pricing, and a commitment to innovation.
The TGA’s progress is not limited to fleet growth. They have also emphasized the importance of developing a skilled workforce capable of supporting the expanding sector. Training programs and educational initiatives are underway to equip Saudi nationals with the expertise needed to operate and maintain advanced maritime infrastructure. This contributes to long-term sustainability.
In contrast to some global trends, Saudi Arabia’s maritime transport sector witnessed consistent growth even during periods of economic uncertainty. This resilience is attributed to the kingdom’s strong financial position, its diversified economy, and its commitment to long-term strategic investments. The accessibility to global shipping lanes also presents a recurring advantage.
Looking ahead, the TGA is expected to announce further initiatives aimed at strengthening the sector’s competitiveness and attracting foreign investment. Key areas of focus likely include streamlining customs procedures, enhancing port connectivity, and promoting the development of value-added logistics services. The realization of the National Transport and Logistics Strategy’s full potential remains a central goal.
The long-term impact of these developments on Saudi Arabia’s economic diversification efforts remains to be seen. The continued success of the maritime transport sector is crucial for achieving the ambitious targets set out in Vision 2030. Ongoing monitoring of global economic trends and adjustments to national policies will be essential to sustaining this positive momentum.
