The Kingdom has improved the regulatory environment and begun investing in large-scale infrastructure development to realize its potential as a leading global transport and logistics hub. A US$100 billion investment is planned over the next ten years to upgrade and future-proof the Kingdom’s transportation infrastructure, including multi-modal facilities in the Economic Cities that will be the largest and most advanced in the region. For example, the port in King Abdullah Economic City (KAEC) will be the region’s largest, with a container capacity exceeding 10 million TEU and a specialty Hajj terminal.
The Ministry of Transport was mandated to produce a National Transport Strategy in 2002 and since then has detailed a number of recommendations around improving transport in the Kingdom. Expansive improvements to the Kingdom’s transportation system are in progress, including construction and upgrades of multiple new seaports, airports, road links and a number of massive rail developments, such as the Medina-Mekkah monorail, the Land Bridge and the north-south Mineral Line. As new investments come online, bottlenecks will be eliminated as the new facilities augment the Kingdom’s already considerable transport capacity, which includes 26 airports (many of which are currently operating below capacity), extensive road networks, and excellent sea lane access.
Meanwhile, the Electricity and Cogeneration Regulatory Authority of Saudi Arabia launched its Electricity Industry Restructuring Plan in 2006, with the intention of moving toward a competitive wholesale electricity market in Saudi Arabia. The authority envisions achieving this by establishing a separate transmission company and a principal buyer, and implementing a wheeling charge that provides clear third-party access to the system. The outcome of this process should be an efficient market for electricity, providing more reliable supply for both homes and businesses.