Market Trends of Saudi Arabia Contract Logistics Industry
Growth in E-commerce Driving the Market
Saudi consumer's appetite for online shopping increases as they spend more time and money doing it. As a result, we continue to witness a rise in consumer demand for cutting-edge new payment options, from Buy Now, Pay Later to cryptocurrencies and digital wallets.
The e-commerce market in Saudi Arabia is poised for further expansion. Saudi Arabians are predicted to have 33.6 million internet users for e-commerce (buying and selling) by 2024, up 42% from 2019. Saudi Arabia has one of the highest rates of smartphone penetration (97%) in the world, more mobile broadband internet subscribers than the majority of developed markets, the tenth-fastest internet speed in the world, and a relatively high proportion of people (72%) who are over the age of 15 and have a bank account. With 78% of Saudi customers indicating that they will maintain or raise their current level of e-commerce spending until 2023, the future appears to be even more promising.
Pharmaceutical and Healthcare Spending is Increasing the Contract Logistics Market
Saudi Arabia largely finances healthcare spending in the Gulf Cooperation Council (GCC), and the Saudi government continues to place a high premium on the industry. Healthcare and social development will account for USD 36.8 billion in 2022, or 14.4% of its overall budget and the third-largest line item after education and the military. The privatization of the healthcare industry is a goal of the Saudi Arabian government.
The Saudi Arabian government has budgeted about USD 65 billion to develop the healthcare system as part of Vision 2030. Additionally, it aims to privatize 290 hospitals and 2,300 primary health centres by 2030, increasing private sector participation from 40% to 65%. The MOH intends to establish health clusters across Saudi Arabia to encourage preventive and integrated care and to increase access to health services. In line with Vision 2030 and the National Transformation Program, the Saudi government wants to increase the private sector's contribution to the nation's healthcare system. Plans outlined in the Vision 2030 & National Transformation Program (NTP) include increasing the privatization of public services, implementing health IT and digital records, doubling the number of competent Saudi nurses by 2020, and increasing the number of registered medical institutions from 40 to 100 by the same year. To achieve its objective of replacing imports in crucial areas and preventing future shortages, the Kingdom is concentrating on creating new sources of competitiveness. To become a major producer and innovation in the MENA area, it seeks to maximize the value added by the local cluster while shifting to increasingly sophisticated products.
