His Excellency the Minister of Transport and Logistics, Engineer Saleh bin Nasser Al-Jasser, announced ambitious targets to enhance local content in the transport sector, stressing that the ministry seeks to raise the percentage from the current 57% to 70% by 2030. This statement came during a dialogue session within the activities of the fourth edition of the Public Investment Fund and Private Sector Forum, pointing to the significant growth witnessed by local content in the sector since the launch of the National Transport and Logistics Strategy in 2020, where the percentage jumped from 39% to 57%.
Vision 2030 and local content: a key pillar for economic diversification
This approach is an integral part of the Kingdom's Vision 2030 , which places the development of local content and the localization of industries and services at the heart of its strategic objectives. The Vision aims to diversify the Kingdom's economic base and reduce its reliance on oil as the primary source of income. By increasing the proportion of local components in both government and private projects, the Kingdom is working to build a sustainable economy, create quality job opportunities for its citizens, stimulate the growth of small and medium-sized enterprises (SMEs), and transfer knowledge and technology to the local market.
The importance of the national transport and logistics strategy
The National Transport and Logistics Strategy is the driving force behind these efforts, aiming to solidify the Kingdom's position as a global logistics hub connecting three continents. Achieving this goal requires advanced infrastructure, supportive legislation, and a robust local supply chain capable of meeting the demands of mega-projects. Increasing local content in sectors such as railways, roads, and maritime and air transport not only contributes to reducing costs in the long term but also enhances the resilience of the national economy and its ability to address global supply chain challenges.
Expected impacts and promising investment opportunities
Increasing local content is expected to have far-reaching positive effects. Domestically, it will create thousands of direct and indirect jobs and enhance the Kingdom’s industrial and service sector capabilities. Regionally and internationally, building a strong local industrial and logistics base will make the Kingdom a more attractive trading and investment partner, boosting its global competitiveness.
Minister Al-Jasser noted that achieving these objectives requires close collaboration with key government entities such as the Ministry of Industry and Mineral Resources, the Local Content and Government Procurement Authority, and the Ministry of Investment. He also emphasized the pivotal role of the private sector, explaining that plans are in place to increase its investment share in the sector to 80% through privatization and concession models, thus opening the door to significant investment opportunities for local and international investors across various aspects of the transportation system.
