King Salman International Airport and EW Partners explore ways to develop the special economic zone between Saudi Arabia and China

ewpartners joins with King Salman International Airport to explore development of KSA-Sino Logistics Special Economic Zone as key logistics initiative for Saudi-Asia trade

 Announcement was made at the Global Logistics Forum in Riyadh on 1 3 th October

Riyadh, Saudi Arabia – 13 th October 2024 – ewpartners (formerly eWTP Arabia Capital), the first international private equity firm to establish a Saudi-Asia cross border investment platform, is partnering with King Salman International Airport Development Company (KSIADC) to explore plans for a Special Economic Zone within King Salman International Airport in Riyadh.

The initiative is aimed at enhancing growth and operational excellence in logistics within the Kingdom of Saudi Arabia, contributing to the Kingdom's goal of developing into a global logistics hub linking three continents and improving trade connections between Saudi Arabia , China and the wider Asian continent.

Known as the 'KSA-Sino Logistics Special Economic Zone', the collaboration between ewpartners and KSIADC was announced this week at the Global Logistics Forum in Riyadh, which is under the patronage of The Custodian of The Two Holy Mosques, King Salman Bin Abdulaziz Al Saud, and hosted by the Ministry of Transport and Logistic Services of the Kingdom of Saudi Arabia.

The Special Economic Zone is supported by the Ministry of Transport and Logistics and is one of several recently announced initiatives designed to strengthen supply chains and streamline trade, e-commerce and investment in line with the Kingdom's Vision 20 30 .

The project will cover a total area of 4 square kilometers and will be developed in four phases over a period of 12 years.

The project site will include:

• A Logistic/Light Industrial Park: Focused on manufacturing and logistics, supporting local supply chain development and enhancing Saudi Arabia's industrial capacity.
• An International Commercial Park: Focused on providing a hub for global businesses to establish their presence, facilitating international trade and attracting more foreign direct investment.
• Living Space and Supporting Facilities: To offer comprehensive services necessary for professionals' living and working needs, enhancing Saudi Arabia's appeal as an investment destination.

The project aims to create an integrated ecosystem that will encompass global enterprises, logistical facilities , supply chains, and high-end manufacturing, significantly bolstering Saudi Arabia’s regional and global distribution capabilities. International companies will establish manufacturing capabilities within the Zone and collaborate with Saudi enterprises to produce locally for distribution to markets around the world. In this way, the Zone will embody the 'Made in Saudi' Programme, which supports Saudi businesses to increase their exports to priority markets.

The project is expected to attract over 3,000 wholesalers and retailers and around 200 light industrial manufacturers from China and Asia. From this hub, they will then be able to explore expansion to other markets in the region and further afield.

Fully aligned with Saudi Arabia's Vision 2030, the project is scheduled to launch by the end of 2025 and is expected to attract significant international investment, further promoting the diversification and sustainable development of the Saudi economy.

By leveraging its global network and deep industry expertise, ewpartners, an international investment firm recognized for its strategic alliances and cross-border investment initiatives, will facilitate collaboration among relevant governments, international investors, and Saudi and global enterprises, ensuring the project attracts leading players from targeted sectors. Drawing on the successful experiences of China's extensive network of free trade zones, ewpartners will actively engage with top global companies to foster industrial and commercial growth in Saudi Arabia, thereby enhancing the Kingdom's competitiveness in the global market and complementing its other economic initiatives.

During the opening remarks of the Forum, HE Eng. Saleh bin Nasser Al-Jasser, Minister of the Ministry of Transport and Logistics Services said: “Saudi Arabia has long been at the crossroads of global trade, and today we are once again leading the charge with cutting-edge infrastructure, such as King Salman International Airport and an expanding rail network. These vital facilities are key to realizing Vision 2030, with over 1 trillion SAR set for investment by 2050, of which 200 billion SAR has already been deployed. Through strategic partnerships between the public and private sectors, we have made significant progress, positioning Saudi Arabia as a hub of innovation across industries and establishing the Kingdom as a global logistics powerhouse.”

Marco Mejia, Acting CEO of KSIADC, said: “This partnership marks a significant step in delivering on our vision to establish King Salman International Airport as a leading international logistics hub serving regional and global logistics companies and supporting Saudi Arabia’s trade expansion. By joining forces with ewpartners, we are poised to enhance our logistics infrastructure, boost efficiency, and create new opportunities for economic growth in Saudi Arabia and the region.”

Je rry Li , Founder & Managing Partner of ewpartners , said: “Saudi Arabia’s vision to establish this major logistics hub has been a cornerstone of ewpartners’ presence in the Kingdom. After nearly five years of dedication to this initiative, our expertise in technology-driven solutions and cross-border investment, coupled with the strategic location of King Salman International Airport—positioned as a gateway between Asia, Africa, and Europe—will unlock immense potential for cross-border trade. This paves the way for new growth and innovation in the Kingdom’s logistics and e-commerce sectors.”

He added: “We know first-hand that there are thousands of top companies from China and the APAC region eager to build a base in the region to be closer to their global customer base. With the support of the Saudi authorities and through teaming up with the right partners, we are confident that this project will become a world-class platform for international companies and local enterprises alike, creating a lasting impact on Saudi Arabia.”