How to Start a Logistics Company in Saudi Arabia

Are you considering starting a logistics company in Saudi Arabia but not sure where to begin? Starting a logistics company in Saudi Arabia can be a rewarding venture, given the country’s strategic location and growing economy. The logistics industry in Saudi Arabia is one of the fastest-growing sectors in the Kingdom, playing a central role in the country’s Vision 2030 economic diversification plan. With its prime location connecting Asia, Africa, and Europe, Saudi Arabia has become a strategic global logistics hub. Investors who establish a logistics company in Saudi Arabia can access booming opportunities in freight forwarding, transportation, supply chain management, and e-commerce logistics. With our expertise and experience in the industry, we can help you navigate the process smoothly and efficiently. From registering your business to obtaining the necessary permits and licenses, we have you covered every step of the way.

Why Invest in the Logistics Sector in Saudi Arabia?

Saudi Arabia is positioning itself as a regional logistics hub connecting Asia, Africa, and Europe. With massive government investments in ports, airports, and industrial zones, the logistics industry is projected to grow exponentially. The country aims to rank among the top 10 logistics markets worldwide by 2030, making it the perfect time to start a logistics company in Saudi Arabia.

Key benefits include:

• Strategic trade location between three continents.
• Advanced road, rail, sea, and air connectivity.
• Tax incentives and business-friendly regulations.
• Increasing demand for e-commerce logistics services.

Why Choose Saudi Arabia for Your Logistics Company?

Saudi Arabia is strategically located at the crossroads of Europe, Asia, and Africa, making it an ideal hub for logistics operations. The Kingdom has a well-developed infrastructure, including modern ports, highways, and airports, which facilitate the efficient movement of goods both domestically and internationally. Entrepreneurs can set up a supply chain company Saudi Arabia or a transport company setup KSA to serve growing trade and e-commerce needs. With rising online shopping, e-commerce logistics Saudi Arabia is rapidly expanding, offering opportunities in last-mile delivery and fulfillment services. Investors can also benefit from operating in logistics free zones Saudi Arabia, which provide incentives and easy access to regional and international markets. Whether for freight forwarding, distribution, or business setup in Saudi Arabia, the logistics sector continues to present a dynamic growth potential for both local and international companies.

Importance of Logistics Company in Saudi Arabia

Saudi Arabia aims to become a world-class logistics hub by:

• Ranking among the top 10 logistics markets globally by 2030.
• Expanding cargo capacity at airports, seaports, and dry ports.
• Building smart logistics platforms to support digital trade.
• Encouraging foreign investment in logistics infrastructure.

The Saudi government has launched the National Transport and Logistics Strategy (NTLS), focusing on:

• Improving efficiency in land, sea, and air transportation.
• Developing specialized logistics zones and free trade areas.
• Attracting private-sector investors in logistics and supply chain.

Types of Logistics Businesses You Can Start in Saudi Arabia

Before starting, decide what type of logistics business setup in Saudi Arabia aligns with your goals:

1. Freight Forwarding Company – Handling air, sea, and land cargo movements.
2. Warehousing and Distribution – Providing storage, inventory management, and delivery.
3. Last-Mile Delivery Services – Growing rapidly with e-commerce in Saudi Arabia.
4. Supply Chain Management Company – Offering integrated logistics and supply chain solutions.
5. Customs Clearance Agency – Assisting import/export companies with clearance procedures.
6. Transport Company – Operating fleets for road cargo transport.

Step-by-Step Process to Start a Logistics Company in Saudi Arabia

Starting a logistics company in Saudi Arabia is one of the most profitable ventures due to the Kingdom’s growing demand for transportation, warehousing, and supply chain solutions. Investors can explore opportunities in logistics business setup Saudi Arabia, covering freight forwarding, customs clearance, and warehousing services Saudi Arabia. The government’s Vision 2030 initiatives encourage foreign investment, making it easier to start logistics business KSA with the required approvals and the Saudi Arabia logistics license. Companies that establish operations in the Kingdom gain access to advanced logistics infrastructure Saudi Arabia and benefit from its strategic position as a global Saudi logistics hub.

Step 1: Business Planning

• Define your logistics service offering.
• Conduct market research on Saudi logistics demand and competitors.
• Prepare a feasibility study and financial projections.

Step 2: Choose a Legal Structure

You can set up your business as:

• Limited Liability Company (LLC) – Most common for logistics.
• Joint Stock Company (JSC) – Suitable for larger operations.
• Branch of a Foreign Company – For international logistics firms entering Saudi Arabia.

Step 3: Obtain Licenses and Approvals

• Commercial Registration (CR) from the Ministry of Commerce.
• Logistics/Transport License from the Transport General Authority (TGA).
• Approvals from Saudi Ports Authority (if operating in seaports).
• Customs approvals (if providing import/export services).

Step 4: Investment Requirements

• Foreign investors need approval from the Ministry of Investment (MISA).
• Minimum capital may range from SAR 500,000 to several million, depending on your business activity and structure.

Step 5: Choose a Strategic Location

• Jeddah Islamic Port – Major hub for sea cargo.
• King Abdullah Economic City – Modern logistics hub.
• Riyadh Dry Port – Central location for inland cargo.
• King Salman Park for Logistics – Specialized logistics zone.

Step 6: Secure Office & Warehouse Facilities

• Rent or build a warehouse facility for storage and distribution.
• Choose offices near transport hubs for operational efficiency.

Step 7: Fleet & Technology Setup

• Invest in cargo trucks, vans, or refrigerated vehicles (if needed).
• Implement digital logistics solutions (tracking, fleet management, ERP, AI-driven supply chain).

Legal Requirements for Setting Up a Logistics Company

Before diving into the logistics business in Saudi Arabia, it is important to understand the legal requirements and procedures involved. Here are the key steps to set up your logistics company:

1. Company Registration: Register your logistics company with the Saudi Ministry of Commerce and Investment (MOCI). Choose a business structure that suits your needs, whether it’s a sole proprietorship, partnership, or corporation.
2. Obtain Necessary Licenses: Depending on the nature of your logistics operations, you may need to obtain specific licenses and permits from relevant authorities. This could include customs clearance, freight forwarding, and transportation licenses.
3. Set Up Corporate Bank Account: Open a corporate bank account in Saudi Arabia to facilitate financial transactions related to your logistics business. Ensure compliance with local banking regulations.
4. Customs Clearance Procedures: Familiarize yourself with Saudi customs regulations and clearance procedures to expedite the movement of goods across borders. Consider hiring customs clearance agents for seamless operations.

Required Documents for Logistics Company setup in Saudi Arabia

Setting up a logistics company in Saudi Arabia requires a number of documents to be submitted to the relevant authorities. Here is a list of the necessary documentation:

1. Commercial Registration (CR): This is a key document that establishes your company as a legal entity in Saudi Arabia. You will need to apply for a CR from the Ministry of Commerce and Investment.
2. Memorandum of Association (MOA): The MOA outlines the company’s structure, shareholders, and activities. It must be notarized by a Saudi Arabian notary public.
3. Articles of Association (AOA): This document specifies the internal rules and regulations of your company. It must be notarized and signed by all shareholders.
4. License from the Saudi General Investment Authority (SAGIA): Foreign investors must obtain a license from SAGIA to establish a company in Saudi Arabia.
5. Lease Agreement: You will need to provide a copy of the lease agreement for your company’s premises.
6. Bank Certificate: A certificate from a Saudi Arabian bank confirming that you have deposited the minimum required capital in a Saudi bank account.
7. Certificate of Approval: This certificate is issued by the relevant authorities, such as the Ministry of Transport, for logistics companies.
8. Tax Registration Certificate: You will need to register with the General Authority of Zakat and Tax (GAZT) to obtain a tax registration certificate.

Benefits of Working with Us

• Expert Guidance: Our team of experts will provide you with the guidance and support you need to set up your logistics company in Saudi Arabia successfully.
• Efficient Processes: We have streamlined the process of setting up a business in the Kingdom, saving you time and hassle.
• Tailored Solutions: We understand that every business is unique, which is why we offer tailored solutions to meet your specific needs.
• Local Knowledge: With our in-depth knowledge of the Saudi market, we can help you navigate the local business environment and ensure your success.

Our Services Include:

• Company registration and licensing assistance
• Location scouting and real estate services
• Recruitment and HR support
• Marketing and business development consultancy

In conclusion, setting up a logistics company in Saudi Arabia can be a rewarding endeavor with the right support. If you are ready to take the next step, contact us today to learn more about how we can assist you in realizing your vision. Open Logistics Company setup in Saudi Arabia with us and let us help you achieve your goals in this growing market.

FAQs About Logistics Business Setup in Saudi Arabia