Saudi Arabia is making waves in the maritime industry, and it’s not just about oil anymore. The Kingdom is strategically positioning itself as a global logistics hub, and the world is taking notice. With investments exceeding SR25 billion ($6.66 billion) in the past four years, Saudi Arabia is serious about diversifying its economy and reducing reliance on oil revenues. This is all part of Vision 2030, the Kingdom’s ambitious plan to transform its economy and society.
So, what does this mean for the maritime sector? For starters, it’s a game-changer for global trade logistics. Saudi Arabia’s strategic location at the crossroads of global trade routes puts it in a prime position to influence how goods move around the world. By investing in maritime infrastructure and embracing sustainability, the Kingdom is setting the stage for a shift in global trade dynamics.
Omar Hariri, president of the Saudi Ports Authority, has been at the helm of these investments, collaborating with both national and international partners to boost the Kingdom’s maritime capabilities. And it’s not just about building bigger ports. Hariri and his team are focusing on advanced maritime infrastructure, including shipbuilding and logistics services, to create alternative trade routes and reduce reliance on traditional chokepoints like the Suez Canal.
Fincantieri, one of the world’s largest shipbuilding companies, is already on board. CEO Pierroberto Folgiero sees Saudi Arabia’s investments as an opportunity to apply his company’s expertise in shipbuilding and maritime technology. “By expanding its shipbuilding capacity and enhancing its logistics infrastructure, the Kingdom can address global supply chain bottlenecks, strengthen its maritime influence, and foster resilience in international trade flows,” Folgiero told Arab News.
And it’s not just talk. Fincantieri has launched Fincantieri Arabia, a subsidiary focused on shipbuilding, maritime equipment, and naval logistic support services. The company is also eyeing the development of the King Salman International Maritime Industries Complex in Ras Al-Khair, set to become one of the world’s largest shipyards.
But it’s not just established international companies that stand to gain. National players like Folk Maritime, backed by the Public Investment Fund, are also making strides. CEO Poul Hestbaek highlighted the Saudi government’s proactive steps to adapt its regulatory framework and attract global investors. “As Saudi Arabia modernizes its regulatory framework, we are leveraging the adoption of digitization, automation, and AI-driven solutions to optimize port operations and streamline the logistics chain,” he said.
Folk Maritime is playing a vital role in this transformation, expanding its fleet and direct liner services along strategic routes. Hestbaek pointed to key economic indicators to watch, including the growth in port throughput, the development of new shipping routes, and the rise in non-oil exports.
Sustainability is also a key focus. Hestbaek emphasized that expansion must be done in a sustainable manner, aligning with Saudi Arabia’s net-zero carbon by 2060 goals. Folk Maritime is incorporating advanced green technologies into its fleet, using energy-efficient technologies to reduce emissions and optimize fuel consumption.
Security is another top priority. With threats like the Houthi-led attacks in the Red Sea, Saudi Arabia is investing in state-of-the-art naval and coast guard assets, as well as enhancing port security. Folk Maritime is also committed to safeguarding its fleet and digital infrastructure from emerging cyberthreats.
But the maritime industry is more than just goods. Maritime tourism is also on the rise, with Saudi giga-projects like NEOM and the Red Sea transforming the Kingdom’s cruise ship industry. Fincantieri’s Folgiero highlighted the potential of these projects to attract high-end travelers and sharpen Saudi Arabia’s competitive edge in the global tourism landscape.
Cruise Saudi, backed by the PIF, aims to attract 1.3 million passengers annually by 2035 and generate 50,000 direct and indirect jobs in the cruise sector. The launch of the Aroya, Cruise Saudi’s first ship, at Jeddah Islamic Port is a testament to the Kingdom’s commitment to this vision.
So, what’s next for the maritime sector? Saudi Arabia’s investments and strategic initiatives are set to reshape global trade logistics, create alternative trade routes, and boost maritime tourism. As the Kingdom continues to diversify its economy and embrace sustainability, the maritime industry is poised for significant growth and innovation. The world is watching, and the future looks bright for Saudi Arabia’s maritime ambitions.
