Riyadh Chamber Official: “Digital Transformation & AI Lead the Future of Logistics in Saudi Arabia”

In the rapidly evolving world of logistics, customs consulting and logistics services in Saudi Arabia play a pivotal role in enhancing the efficiency of supply chains and facilitating trade flows.

Experts and specialists are central to delivering innovative solutions that address the ever-changing challenges within this vital sector.

To gain deeper insights, Entrepreneurship interviewed Ibrahim Mohammed Al-Qahtani, a member of the Logistics Services Committee at the Riyadh Chamber of Commerce and the founder of Compliance Solutions for Logistics and Customs Consulting. He shared his perspectives on the current state of the logistics sector in the Kingdom, key opportunities and challenges, and the role of digital transformation in advancing logistical operations. He also discussed the future of customs services and the importance of regulatory compliance to boost business competitiveness.

Al-Qahtani emphasized that the logistics sector in Saudi Arabia has undergone a remarkable transformation, impacting various areas such as transportation, warehousing, and air, land, and sea shipping.

He highlighted the National Transport and Logistics Strategy, spearheaded by H.R.H. Crown Prince Mohammed bin Salman, which has launched numerous initiatives, including logistics hubs, railway lines, and the land bridge project connecting the Arabian Gulf to the Red Sea.

He further noted that connecting Saudi ports with numerous international ports will attract increased global investment in the sector, as evidenced by recent agreements, including the logistics zone at Jeddah Islamic Port with the global company Maersk.

Logistics Services in Saudi Arabia

How does Compliance Solutions enhance the efficiency of customs operations and logistics services in the Kingdom?

Compliance Solutions was established in 2020 by experts with over 25 years of local and international experience in customs and logistics operations. We possess comprehensive knowledge of regulations and systems that facilitate smooth and seamless cargo movement across borders.

Our services ensure obtaining all necessary certificates and documentation for customs clearance while maintaining regulatory compliance. Additionally, we secure customs exemptions for raw materials for factories, thereby reducing product costs and improving supply chain efficiency for companies and manufacturers.

What services and solutions do you provide to support small and medium-sized enterprises (SMEs) in the logistics sector?

As I mentioned earlier, Compliance Solutions boasts a team of experts specializing in customs operations, international shipping, and logistics. We offer a comprehensive package of services, including the registration of imported goods with relevant authorities, such as the Ministry of Industry, the Food and Drug Authority, and the Standards and Metrology Authority.

We also provide services for customs exemptions, international shipping, customs clearance, storage, and transportation from ports and airports to warehouses.

How does your company help entrepreneurs comply with customs regulations and avoid regulatory obstacles?

Our specialized team assesses clients, whether large companies or emerging startups, and provides advice on selecting the best logistics service providers. We also establish performance measurement criteria for these providers and ensure they adhere to governance practices.

We safeguard the reputation of importers and exporters by preventing errors that could lead to fines and penalties, including prison sentences for tax or customs evasion, as stipulated by the unified customs law of the Gulf Cooperation Council (GCC).

Transforming Saudi Arabia’s Logistics Sector

How do you see the development of the logistics sector in Saudi Arabia in light of Vision 2030?

We are witnessing a transformative shift across all logistics sectors—transportation, warehousing, air, land, and sea shipping. This progress is thanks to the National Transport and Logistics Strategy, led by H.R.H. Crown Prince Mohammed bin Salman.

Numerous initiatives have been launched under this strategy, such as logistics hubs, railway lines, and the land bridge project connecting the Arabian Gulf to the Red Sea. Additionally, the connection between Saudi ports and various international ports will further attract global investment.

Recently, we saw major agreements signed, including the logistics zone at Jeddah Islamic Port with Maersk.

What advice would you give entrepreneurs interested in entering the logistics sector?

The promising logistics sector holds a bright future. We need innovative entrepreneurs who can develop new solutions and leverage the latest technologies to advance the sector and address challenges in logistics services and supply chains.

Facilitating Trade Between Saudi Arabia & the World

What role does customs consulting play in facilitating trade between Saudi Arabia and other countries?

Before entering a new market, global companies often seek specialized consulting firms to understand customs procedures, regulations, and fees. This enables them to assess production costs accurately.

They also explore opportunities to reduce costs by leveraging various customs exemptions, including those for raw materials and industrial products, as well as tariff reductions and international agreements.

How do smart solutions improve customs operations and reduce time and costs?

Technology is the key to excellence and success in procedural operations. We are witnessing a significant shift in customs operations, thanks to the efforts of the Zakat, Tax, and Customs Authority.

They have launched several initiatives to expedite customs clearance, including pre-clearance before cargo arrival, which helps reduce the cost of import and export operations.

Empowering Entrepreneurs

How does Compliance Solutions empower local entrepreneurs and support the national economy?

We aim to be a leader in customs consulting and logistics services. This aspiration is already materializing through our collaborations with clients involved in major projects across the Kingdom, including those led by the Ministry of Housing and the Public Investment Fund (PIF). These projects contribute to the Kingdom’s development and prosperity.

What message would you give to young Saudis before entering the logistics sector as entrepreneurs?

My advice is simple: learn, learn, and learn again.

The logistics sector is challenging and requires a deep understanding of its complexities. Success comes from learning its secrets and tackling its daily challenges. This learning process happens through hands-on experience in logistics companies and institutions.

Once a young Saudi gains this knowledge, countless opportunities will open up in the diverse fields of logistics.