FedEx Express invests US$400m in own Saudi Arabia operations

FedEx Express is switching from local service partner SAB Express to its own operations in Saudi Arabia as part of a SAR 1.5 billion (US $400 million) investment in the country.

The company said its transition to a ‘direct-serve’ presence in the Kingdom of Saudi Arabia (KSA), which will be supported by SAB Express, would help to meet the country’s growing international shipping demands.

FedEx Express has been facilitating trade in Saudi Arabia since 1994, offering international solutions and connectivity through local service providers, most recently through SAB Express.

10-year investment plan

FedEx plans to invest more than SAR 1.5 billion (US $400 million) into the Saudi economy over the next 10 years through talent management and local operations and infrastructure.

This investment will reaffirm the company’s commitment to the country’s non-oil economic growth, in line with Saudi Arabia’s Vision 2030 goals, and the ‘National Industrial Development and Logistics Program’ which seeks to increase non-oil exports to more than SAR 1 trillion (approximately US $266 billion).

Under the 'Saudi Vision 2030', the Kingdom is committed to increasing its total air cargo capacity. FedEx will support the trade requirements of the healthcare, e-commerce, technology, energy, aerospace, automotive, and petrochemical sectors in KSA.

Wider service portfolio

Jack Muhs, regional president of FedEx Express Middle East, Indian Subcontinent, and Africa, said: “Our customers will be able to take advantage of FedEx digital tools and a wider service portfolio. This strategic expansion in the Kingdom will help Saudi-based businesses connect to new markets and customers around the world, supporting Saudi Arabia’s Vision 2030 goals to diversify the national economy.”

He continued: “In addition to our commitment to the Saudi economy, we see FedEx Express playing an important role in developing the small and medium enterprise environment in Saudi Arabia, which forms the backbone of the economy, and represents 99% of Saudi Arabia’s private sector.”

Close cooperation with SAB Express

FedEx Express stressed that it will continue to work closely with SAB Express to provide pickup, delivery, and customs clearance services across the country.

Sheikh Salah Al Bluewi, chairman of SAB Express, commented: “We’re happy to continue supporting FedEx Express in Saudi Arabia with their growth journey, and join them in playing a critical role in developing Saudi Arabia’s logistics infrastructure, in line with the country’s coordinated efforts and strategy in diversifying the economy. The logistics sector is a key contributor towards employment, investment, and overall economic growth in our nation.”