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Saudi Arabia Transport & Logistics Growth: Digitally-Enabled in 2018

Saudi Arabia Transport & Logistics Growth: Digitally-Enabled in 2018

One of the largest Transport & Logistics(T&L) markets in the GCC, Saudi Arabia has a logistics market size of $55 billion with UAE following close behind at $30 billion. Due to the massive initiatives taken by the government towards economic diversification (transition from energy-based industries to commercial sectors), the logistics market has been growing exponentially in the region.

According to a report issued by Al-Masah, the global logistics market is expected to generate $15.5 trillion in revenues by 2024, with the Middle East & North Africa(MENA) fast emerging as the hub of the logistics industry.

Factors Driving Logistics Growth in Saudi Arabia - KEN RESEARCH
Factors Driving Logistics Growth in Saudi Arabia – KEN RESEARCH

Factors such rapid globalization & increasing trade volumes have led to a predicted figure of 92.1 billon tons in terms of trade volume by 2024. E-commerce is expected to double from $95 billion in 2013 to $200 billion by in 2020 in the MENA region. B2C is expected to contribute to 30% of the total value with G2B at 25% and B2B at e-commerce at 20%.

The UAE, Egypt & Saudi Arabia with a predicted 30% top-line annual growth are expected to be the fasted growing e-commerce markets globally in the next few years.

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Digitally – Enabled Logistics In Saudi Arabia

Truckr for Saudi Logistics Business

The transition from the offline to online trucking industry has been fast spreading globally. In the Middle East, the logistics industry was transformed with the launch of Trukkin – A cloud-based B2B trucking platform. Trukkin opened new doors by offering quick access to suppliers, on-demand services, and reduced operational overhead due to the transparency and improved operational efficiency, the platform offered. Using a customer app on both iOS and Android platforms and multi-lingual support, Trukkin paved the way for a digitally-enabled logistic market.

Following suite, a number of digital Transport & Logistics(T&L) startups had begun to rise to capitalize on the growing e-commerce market and the need for improved operational efficiency in the T&L industry.

Truxapp, another digitally-enabled trucking, and logistics provider has recently projected aa revenue figure of $1 billion by 2020 with 40% of revenue expected from GCC alone. Truxapp has been working since 2015 with over 350,000 trucks and 200 corporate clients. It is quickly establishing itself has a market leader in the road and freight sector.

“Digital savvy and connected consumers expect faster, accurate deliveries and an optimal user experience which can make or break brand loyalty. These are some of the factors that will put a strain on companies reliant on logistics and transportation if they fail to rapidly adapt to changing market dynamics and meet customer expectations” – Naseer Ahmed, CEO, Truxapp


TruKKer, another trailblazer in this space, has recently closed $14million in seed funding from institutional funds like Saudi-based Riyad Taqnia fund (RTF), Averroes Ventures, Arzan VC & 500 startups. After witnessing a 2000% growth in its first year of operations, TruKKer is now planning for large-scale expansion.

“The trucking industry has remained traditional for a very long time, relying on brokers to connect trucking companies and shippers, an uneven process, which is ready for technology-based transformation…..TruKKer has successfully reduced transportation rates by 20 – 30% on many instances based on higher asset utilization of its member trucks” – Gaurav Biswas, Founder & CEO

A new era of digitally-enabled logistics is rising in Saudi and surrounding regions to solve the inefficiencies of the current industry and to bridge the gap between truck owners & drivers with an industry needed digitally organized transportation company.

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