https://arab.news/53kw9
- Commercial activity expands as business licenses reached 86,000 in 2024
RIYADH: Saudi Arabia’s Madinah region saw its logistics services sector grow 54 percent year on year in 2024, underscoring the city’s growing role as a transport and trade hub, according to the latest official data.
Figures from the Ministry of Commerce also revealed that the region’s commercial activity expanded 37 percent from 2018 to 2024, with registered business licenses reaching 86,000 last year.
Madinah’s rise as a logistics center is fueled by its robust infrastructure, including three airports, an extensive highway network connecting five regions, the Haramain High-Speed Railway, and two major ports — one commercial and one industrial. These facilities supported nearly $1.1 billion in non-oil exports and over $1.4 billion in imports in 2021.
The region’s broader economy also experienced strong growth, with the hotel sector reporting a 42 percent annual increase in 2024, while tourism-related businesses, including organized trip activities, grew by 33 percent.
The technology sector also expanded, with computer programming services growing 28 percent, while date drying, packaging, and manufacturing climbed 14 percent year on year.
This comes as consumer spending in the region continues to rise, with point-of-sale transactions reaching SR536.89 million ($143 million) in the week ending Feb. 22, signaling steady retail growth and stable inflation.
The Madinah region has maintained strong demand growth from 2020 to 2024, underscoring its investment appeal, the Saudi Press Agency reported.
The region’s development aligns with Saudi Arabia’s Vision 2030, which aims to transform Madinah into a key investment and cultural hub.
In February, the Madinah Region Development Authority reported improvements in quality of life, economic growth, and cultural initiatives. The region ranked 88th globally in Euromonitor International’s 2024 Top 100 City Destinations Index and seventh in the Tourism Performance Index, with 3,200 locations registered in the National Urban Heritage Register.
Saudi Arabia has also eased restrictions on foreign investments in real estate, allowing international investors to buy shares in Saudi-listed firms that own property in Makkah and Madinah, a move expected to drive further capital inflows into the region.
Madinah’s digital transformation efforts are also gaining traction, with the Al-Madinah Smart City initiative climbing 11 places in the International Institute for Management Development’s Smart City Index, ranking 74th globally, up from 85th in 2023.