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Mazaya Monthly Real Estate Report -
Week 1 - November 2016
The report added that any developments
in the logistics sector should come
through the launch of more investment
enterprises and the encouragement
of the private sector to play more
significant roles in expanding the
sector. In addition, developing a robust
mechanism to draw local and foreign
investments to the logistics industry
is essential to develop the sector.
In Saudi Arabia, the logistics market is
now gaining considerable momentum
with the government closely setting
up the logistics sector to cater to
the
country’s
mega-development
projects and revenue-diversifying
plans. Consistent efforts are exerted
to merge the logistics industry with the
industrial sector in alignment with the
Saudi Vision 2030. The logistics sector
is a significant platform that is capable
of creating job opportunities, with
logistics projects now considered to
be an important driver for reducing the
costs of non-oil imports and exports,
which reached 160 million tons last
year. This, in turn, will ultimately
boost investment potential and draw
foreign investment more seamlessly.
In the meantime, the logistics sector
in Saudi Arabia is now regarded as an
indicator for monitoring the government’s
expenditure on infrastructure projects and
enhancing competitiveness over those
strategic locations that are expected to
solidify all economic sectors and increase
their contributions to the country’s Gross
Domestic Product. KSA now has nine
industrial and trading ports over the Red
Sea and Arabian Gulf that all can solidify
this sector. In addition, KSA is seeking
to encourage the private sector to pump
more direct investments to develop the
industrial sector, reduce transportation
costs and maximise economic efficiency.
In the UAE, the report said the logistics
industry is witnessing an expansion,
with the country coming first among
GCC and regional states in terms of
the volume of logistics investments.
Consolidated
with
a
resilient
infrastructure, including 12 airports
and seaports, roads, 310 quays and
unloading docks and sophisticated
means of transportation, the logistics
industry in the UAE puts the country on
top of the global scale in terms of the
application of best practices in areas
of border and customs management