Saudi Arabia Water Transport Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Saudi Arabia Water Transport Market Trends & Growth Drivers

Growth in Cruise Tourism in Saudi Arabia Is Major Trend in Market

• Saudi Arabia is making continuous efforts to diversify its economy and reduce its dependence on oil and gas exports; hence, it has been continuously promoting tourism, which includes the cruise industry. Additionally, the government has started recognizing the potential of cruise tourism in representing the country's culture, as well as offering new job opportunities.
• For developing the cruise industry, the Saudi Arabian government is investing in cruise terminals and related infrastructure, especially at the major ports in the country.
• The government is also working on enhancing the overall experience of cruise passengers, as well as developing tourist attractions off the coast that are reachable via ships.

Growing Domestic and Regional Trade within GCC Drives This Market

• GCC members have historically had strong economic ties, and they are now working toward greater regional integration and cooperation.
• As the largest economy in the GCC, Saudi Arabia plays an important role in intraregional trade. The rise in domestic consumption and increase in trade among GCC countries boost the demand for enhanced marine networks to transport goods and materials within the region.
• The key factors driving regional trade volumes are economic diversification, expansion of regional supply chains, initiatives for food security, population growth, and urbanization in Saudi Arabia.
• Because of Saudi Arabia's strategic location and its extensive coastline, it is laying emphasis on facilitating the movement of goods within GCC through its ports and maritime logistical networks.

Climate Change Is Key Challenge for This Market

• Climate change is one of the biggest challenges for the water transportation industry.
• Saudi Arabia has an extensive coastline across the Red Sea and the Persian Gulf, which makes its ports and maritime infrastructure insecure amidst the effects of climate change, such as the rising sea levels, increasing storm intensity, and changing weather patterns.
• The rise in the sea level can lead to coastal erosion, flooding, and many more adverse effects on port infrastructure and operations.
• Additionally, the increasing storm intensity can cause significant damage to port facilities, affect shipping operations, and create a risk for life and cargo.
• The change in water patterns can impact navigability, port operations, and the overall efficiency of maritime transportation.

Saudi Arabia Water Transport Market Analysis

Type Insights

• The deep-sea category dominates the market by contributing 35% revenue in 2024, and it is expected to witness a CAGR of 5.8% over 2024–2030.
• This is due to Saudi Arabia's strategic location on major international trade routes and its extensive coastlines on the Red Sea and the Persian Gulf, which make deep-sea transportation an important component of its economy.
• Currently, the Red Sea Gateway Terminal has an annual container throughput capacity of 5.2 million TEU. Moreover, it links the 40 busiest container ports worldwide.
• The growing import and export of goods and the presence of major ports in this country drive global trade and help increase cruise tourism.

The types covered in the report include:

• Deep-Sea (Largest and Fastest-Growing Category)
• Coastal
• Lakes
• Inland
• Others

Application Insights

• The offshore category dominates the market by contributing 70% revenue in 2024.
• This category is driven by the presence of the significant oil and gas industry, as well as the continuous growth of marine tourism and logistics sectors.
• The continuous exploration and production of oil and gas, the growing demand for offshore support vessels, the construction and maintenance of offshore E&P infrastructure, development of offshore activities for tourists, and exploration of offshore renewable energy sources drive this category.
• Saudi Arabia holds approximately 17% of the world’s petroleum reserves.

The following applications are included in the report:

• Onshore
• Offshore(Larger and Faster-Growing Category)

Segment Insights

• The goods category dominates the market with 65% revenue in 2024. This market is driven by the need for transporting goods, primarily due to the country’s significant exports of oil, gas, and other industrial products and imports of various consumer goods.
• Apart from these factors, the containerization of freight transportation and efforts to diversify the country’s economy drive this category.
• The passenger category is expected to witness a higher CAGR during 2024– 2030. This growth is attributed to the rising popularity of cruises, as well as the strong promotion of religious tourism.
• This category is also growing due to the rise in coastal and island tourism in Saudi Arabia, which propels the demand for passenger ships and water transportation services.

The following segment are included in the report:

• Passengers (Faster-Growing Category)
• Goods (Larger Category)

Regional Analysis

• The Eastern Region will acquire the largest market share, of 40%, in 2024. This dominance is due to the presence of the oil and gas industry, as well as the country’s largest port on the Persian Gulf coast. Additionally, the Eastern Region has a longer coastline in comparison to other provinces of Saudi Arabia.
• Further, the King Abdul Aziz Port in Dammam, which is the largest and busiest port in Saudi Arabia, handles a large portion of the country's petrochemical and general cargo exports. Other ports in the province are the Jubail Commercial Port in Jubail, which majorly exports petrochemicals; and Ras Tanura Port.
• Makkah will become the fastest-growing market, with a CAGR of 5.9%, in 2024−2023. This province is located on the Red Sea coast, which propels the demand for water transportation of goods and people.
• Further, after the Eastern Region, this province has the large ports, including Jeddah Islamic Port, which handles a substantial portion of the country's imports and exports; and the King Fahd Industrial Port in Yanbu, which serves the petrochemical and mineral industries.
• Additionally, the growing tourism sector drives the market in this province as Makkah is the holiest place in Islam. Hence, the development of the tourism industry augments the demand for water transportation services, including cruise tourism.

The provinces analyzed for this report include:

• Al-Riyadh
• Makkah (Fastest-Growing Province)
• Al-Madinah
• Al-Qaseem
• Eastern Region (Largest Province)
• Aseer
• Tabouk
• Hayel
• Northern Border
• Jazan
• Najran
• Al-Baha
• Al-Jouf

Saudi Arabia Water Transport Market Share

This market is consolidated in nature because of the presence of various key players, such as Red Sea Cruise Company, Aman Alastooul Co., EFS Company Limited, Maqta Gateway, and Hellmann Worldwide Logistics. The presence of major ports, high-volume exports of oil and gas, the presence of national shipping lines, and continuous government investment and control on the sector lead to this consolidation.

Saudi Arabia Water Transport Market News

• In February 2024, Bahri Logistics signed a memorandum of understanding (MoU) with GDC Middle East to establish a framework for collaboration in the field of freight forwarding.
• In March 2024, by opening a new regional office in Riyadh, Aramex Group enhanced its capacity to support both new and current clients in Saudi Arabia.
• In May 2024, the Saudi Red Sea Authority issued the first maritime tourism agent license to Cruise Saudi Company.