The Logistics Sector: Leveraging Emerging Technologies (Riyadh Valley Company)

Summary

• The global logistics industry is expected to reach $14.1 trillion in 2028 from $10.4 trillion in 2022, a compound annual growth rate of 5.2%.p.5
• The GCC transport sector is expected to grow at a compound annual growth rate of 4.9% from 2021 to 2026.p.6
• Matajer Al Markaziya announced funding of $133 million from Kingdom Holding, Uni Ventures and other investors.p.12
• Famstar raised $9.5 million in its first funding round to strengthen healthcare supply chains in the UAE.p.10
• Tracker, a digital freight network and Riyadh Valley portfolio company, went through Series A, Series B and Series C funding rounds between 2019 and 2022.p.12
• AI-based computer vision for sorting parcels is cited with an error rate below 1%.p.7

Key insights

1. Growing e-commerce is an important driver of logistics growth, increasing demand for efficient supply chain management.p.5
2. The GCC logistics sector benefits from a strategic location between Europe and Asia.p.6
3. GCC countries have adopted free zones and tax incentives to attract companies and encourage business operations.p.6
4. Blockchain is being adopted to streamline supply chain operations and improve transparency and security.p.7
5. Smart pickup and delivery points and lockers are popular last-mile options that reduce costs and give customers round-the-clock collection.p.8
6. Tracker launched in Saudi Arabia in 2019 and in Egypt, then expanded to Bahrain and other markets in later years.p.12