Chinese JD Logistics launches Riyadh hub to speed up deliveries in Saudi Arabia
The new 8,000-sq.-meter smart warehouse — JD's first in the region — will serve as a logistics base for its business-to-consumer delivery network, supported by advanced automation and a robust supply chain infrastructure, the company said in a press release.
The facility is expected to meet rising consumer demand in Saudi Arabia, with a report released in April Research and Markets showed showing that the Kingdom's e-commerce market is expected to grow at a compound annual growth rate of 12.10 percent during the period from 2025 to 2033, to reach $68.94 billion.
Rayan Al-Bakri, deputy minister for Logistics Services at Saudi Arabia's Ministry of Transport and Logistics Services, said: 'JINGDONG Logistics' investment in Saudi Arabia aligns with our national vision to become a global logistics hub.'
He added: 'We welcome the company's advanced self-operated express delivery services, which we believe will not only elevate service standards in the Kingdom but also create new opportunities for employment, innovation, and industry development in support of Vision 2030.'
Saudi Arabia's National Logistics Strategy aims to position the Kingdom as a leading global logistics hub by enhancing infrastructure, fostering economic growth, and ensuring integration across various modes of transport.
During the launch, JD Logistics Vice President Wang Ying announced that the company's services will cover most regions of the Kingdom, the Saudi Press Agency reported.
Saudi Arabia's Courier, Express, and Parcel market is expanding rapidly, fueled by a digitally savvy population and the ongoing rise of e-commerce.
According to a report by Mordor Intelligence, the Kingdom's Courier, Express, and Parcel market is projected to grow at a compound annual growth rate of 6.48 percent from 2025 to 2030, with the B2C segment already comprising 56 percent of the market value in 2024.
'The launch of JoyExpress marks a key milestone in JD.com's international journey and business development in Saudi Arabia,' said Charlie Peng, head of Middle East at JD Logistics.
He added: 'JINGDONG Logistics will provide leading edge services to our customers in Saudi Arabia and importantly, align with Saudi Arabia's Vision 2030 strategy with its focus on logistics and job creation.'
The launch comes amid a broader wave of international investment in Saudi Arabia, aligned with the Kingdom's regional headquarters program.
The initiative offers incentives including a 30-year corporate income tax exemption, withholding tax relief, and regulatory support for multinationals operating in the Kingdom.
In March, SPA reported that 600 foreign companies have established regional headquarters in the Kingdom since 2021.
Notable firms include BlackRock, Northern Trust, and Bechtel, as well as PepsiCo, IHG Hotels & Resorts, PwC, and Deloitte.
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