Port paves way for ‘new era of economic affluence’ in Saudi Arabia

Crown Prince Mohammed bin Salman (center) at the launch of the King Abdullah Port on Monday.  (SPA)
Updated 14 February 2019

Port paves way for ‘new era of economic affluence’ in Saudi Arabia

  • ‘A link between East and West,’ Jeddah mayor says at launch 
  • The port is aimed to make Saudi Arabia a global logistics hub

JEDDAH: Saudi Arabia moved one step closer to its goal of becoming a global logistics hub with Crown Prince Mohammed bin Salman’s launch of the King Abdullah Port in Rabigh on Monday. 

The port, part of King Abdullah Economic City, will make the Kingdom “a linking point of three continents, Asia, Europe and Africa,” the crown prince said at the launch.

King Abdullah Port, the fastest-growing container port in the world, is considered a major success story in the Kingdom’s efforts to develop public-private sector partnerships.

The port’s aim of positioning Saudi Arabia as a global logistics hub is in line with the Kingdom’s Vision 2030 economic reforms. 

“When we talk about King Abdullah Port, we are talking about Vision 2030,” Rayan Mustafa Qutub, the port’s CEO, told Arab News.

As part of Vision 2030, Saudi Arabia is investing heavily in the construction of ports, railways, roads and airports. The government plans to work with private- sector investors and enter into a new series of international partnerships to link the infrastructure developments internally and across borders. 

“One of the biggest sources of the economy in the Kingdom’s vision is logistics, which is forecast to become 33 percent of the Kingdom’s economy by 2030,” Qutub said. 

The port will act as a link between Gulf countries through improved logistics services and new cross-border infrastructure projects.

 

 

 

Qutub said King Abdullah Port would establish the Kingdom as a platform for the region.

 

“The countries of East Africa are the new China, the next huge neighboring economy, and we can now exchange exports and imports, and offer logistic services to them and the world as a whole,” he said.

King Abdullah Port, about 120 km north of Jeddah, features the world’s deepest 18-meter water berths and state-of-the-art processing facilities.

The port’s container terminal’s current capacity of 3 million TEU — or 20ft equivalent units, a measure of cargo capacity — will increase to 5 million TEU by the end of the year, according to Qutub.

“King Abdullah Port ended 2018 with an annual throughput increase exceeding 36 percent, a record. If we maintain this growth rate over the coming years, we will achieve our goal of 20 million containers per year very soon.”

Saleh Al-Turki, mayor of Jeddah, said that the port “will add huge value to the city of Jeddah.” 

“This is a huge event. The port makes Jeddah the number one logistics hub in the Middle East. It connects East to West,” he said. 

The port’s expansion will encourage further development in the region, creating jobs, increasing urbanization and delivering economic affluence, Al-Turki said. 

 


Mohammed Al-Shammasi, CEO of Derayah Financial

Updated 3 min 3 sec ago

Mohammed Al-Shammasi, CEO of Derayah Financial

  • Al-Shammasi graduated with honors from King Fahd University of Petroleum and Minerals and went on to take several management and leadership programs in Harvard Business School, Duke University and INSEAD Business School

Mohammed Al-Shammasi has been the CEO of investment solutions company Derayah Financial since September 2016. Al-Shammasi has worked in the fields of financial services, strategy, corporate governance and investment for more than 16 years.

Previously, Al-Shammasi was the company’s chief investment officer, responsible for Derayah Financial’s overall investment activities covering multiple asset classes.

Before joining Derayah Financial, he was head of investment management at NCB Capital. Prior to that job, he was a portfolio manager at Riyad Bank.

Al-Shammasi graduated with honors from King Fahd University of Petroleum and Minerals and went on to take several management and leadership programs in Harvard Business School, Duke University and INSEAD Business School.

Recently, Derayah Financial added forex contract trading services to its offerings. Through the recently launched Derayah Global and Derayah Global Plus services, customers can buy and sell, follow real-time prices in international markets, and create follow-up lists for shares, option contracts, and exchange-traded funds (ETFs).

“Our platform allows eight types of selling and buying orders and provides real-time securities prices with the possibility of creating follow-up lists and viewing a series of options and all available contracts. We offer significant capital facilities, and our professionals are always 

there to answer customers’ questions and provide advice,” Al-Shammasi said at the launch of the new platforms.