Eastern Province tops Saudi Arabia for FDI, with $97.6bn, says top official

RIYADH: Saudi Arabia’s General Ports Authority, known as Mawani, has signed a new agreement to develop a SR300 million ($79 million) logistics zone at King Abdulaziz Port in Dammam, further strengthening the Kingdom’s ambition to become a global logistics hub.

The project, launched in partnership with Alissa International Motors — a subsidiary of Abdullatif Alissa Holding Group — will cover 382,000 sq. m. The new facility will serve as a central hub for the import and re-export of vehicles and spare parts, the authority said in a statement.

This initiative aligns with the goals of Saudi Arabia’s National Strategy for Transport and Logistics, which seeks to enhance supply chain efficiency and attract foreign and domestic investment. The Dammam logistics zone is part of a broader SR10 billion investment plan to establish 20 integrated logistics hubs across the Kingdom under the authority’s supervision.

The new facility will feature a 7,000-sq.-m warehouse dedicated to spare parts storage and is designed to accommodate more than 13,000 vehicles.

“This development will strengthen the port’s competitive edge and reinforce its position as a regional logistics center by delivering high-quality logistics services,” Mawani stated.

The authority emphasized that the project would contribute to economic diversification and bolster private sector participation in the Kingdom’s growth.

Already a vital link connecting Saudi Arabia to international markets, King Abdulaziz Port offers state-of-the-art infrastructure and logistics capabilities, making it an attractive destination for global trade companies.

In a separate development, Mawani signed another contract with Sultan Logistics to establish an additional logistics zone at King Abdulaziz Port, valued at SR200 million. Covering 197,000 sq. m, the facility will include 35,000 sq. m of warehouse space, administrative offices, storage yards for dry and refrigerated containers, and a dedicated re-export area.

“These facilities will elevate the quality of logistics services offered at the port and support trade with enhanced operational efficiency,” Mawani added.

The establishment of the new zones is expected to significantly boost King Abdulaziz Port’s operational capacity and competitiveness.

In 2024, Saudi Arabia launched, developed, and inaugurated eight logistics zones and centers, backed by approximately SR2.9 billion in private sector investments. These efforts form part of the Kingdom’s wider strategy to solidify its standing as a leading global logistics powerhouse.

DUBAI: Abu Dhabi’s Etihad Airways is not seeing any effects from the turmoil caused by US President Donald Trump’s tariff policies, its CEO Antonoaldo Neves told Reuters on Monday, while adding it was too early to fully gauge the impact of the levies.

Trump’s announcement of sweeping tariffs on dozens of US trading partners this month — and then his pausing of most of them — created widespread market uncertainty and raised fears of a global economic downturn.

Neves said Etihad had recorded strong seat occupancy levels in recent weeks despite the trade tensions, and that the volatility could even create opportunities in some instances.

He expects more Europeans, for example, to take advantage of the euro’s recent gains against the dollar and the Gulf region’s dollar-pegged currencies to travel.

“It means that the euro now is stronger when you compare it to the Middle Eastern currency ... So I expect to see more Europeans coming,” Neves said on the sidelines of the Arabian Travel Market fair in Dubai.

Neves’ comments echo Riyadh Air, which said earlier on Monday that global economic uncertainty had not reduced demand for travel to the Saudi capital.

If tariff-induced turmoil does impact passenger numbers, Neves said Etihad, which has a fleet of around 100 aircraft, had a contingency plan and could rely on its flexibility.

“About 60 percent of our planes are unencumbered, so they’re all fully paid for. If I get a crisis one day, I park planes ... and save 75 percent of the cost,” he said.

At a press conference earlier on Monday, Neves said Etihad planned to add 20 to 22 new planes this year, as it aims to expand its fleet to more than 170 planes by 2030 and boost Abu Dhabi’s economic diversification strategy.

The UAE’s capital is investing heavily in sectors like tourism to cut its dependence on oil revenues, and in 2023 it launched a new terminal at Zayed International Airport that tripled the hub’s annual capacity to 45 million passengers.

Etihad, which is owned by Abu Dhabi’s $225 billion wealth fund ADQ, has been through a multi-year restructuring and management shake-up, but has expanded under Neves.

He said that 10 of this year’s new aircraft would be Airbus A321LRs, which the carrier launched on Monday and will start operating in August. The remainder include six Airbus A350s and four Boeing 787s.

Airlines in recent years have been plagued by delayed plane deliveries as manufacturers like Boeing and Airbus struggled with the pace of orders in a post-pandemic travel boom, among other issues.

Neves, who declined to give specifics on the order pipeline, said he was not happy with the delays but that they were not compromising the airline's growth plans.

Etihad is always in talks with planemakers, he said, when asked whether the carrier could be interested in acquiring some of the dozens of planes that Boeing is looking to resell after they were locked out of China due to tariffs.