GCC logistics sector set to expand as Saudi Cabinet approves regional transport law

The logistics sector across the Gulf Cooperation Council region is set to prosper following the Saudi Cabinet’s approval of a land transport law within the region.

Chaired by King Salman, a ministerial session was held in Jeddah, during which the Cabinet reached consensus on several key proposals. Among these was the endorsement of the unified law.

The system is crafted to enhance the organizational environment, simplify procedures, and foster unity. Moreover, it aims to boost road safety, elevate service quality, protect investments, and stimulate growth in the logistics sector throughout the GCC region.

Saudi Minister of Transport and Logistic Services Saleh Al-Jasser remarked in a post on his X account that the Cabinet’s approval of the law among GCC countries exemplifies regional cooperation and marks a significant stride toward unifying and enhancing logistical procedures.

“The law elevates road safety standards, promotes investment and sustainability in transportation projects, and fosters fair competition among service providers by improving the regulatory environment,” Al-Jasser said.

He said this contributes to the realization of the objectives outlined in the National Strategy for Transportation and Logistics Services.

According to the Transport General Authority, the law will apply to all international land transport activities, encompassing both passenger and freight transportation. Additionally, the regulation will cover transportation vehicles registered within the Gulf states.

TGA added that this legislation will be enforced once the member states finalize their internal procedures.

In November 2023, a railway project took center stage during the 25th meeting of the Committee of GCC Undersecretaries of Transport and Communications in the Omani capital, Muscat.

During the meeting, participants discussed the overall framework of an agreement, with a focus on establishing a timeline for implementing and operating the project.

The participants also discussed topics such as protecting joint GCC projects, the regional land transport strategy, and executive regulations of the unified system for international land transport.

At that time, Oman’s Undersecretary of the Ministry of Transport, Communications, and Information Technology for Transport, Khamis Al-Shammakhi stated that the railway project and its services would drive economic growth and facilitate commercial exchange.

“The project will realize comprehensive interconnection between economic and industrial zones and the main ports in GCC states,” the official said, according to his country’s official news agency.