News in brief:
– Saudia Cargo has launched a joint venture in Hong Kong with TAM Group to expand its footprint in Asia, focusing on agriculture, e-commerce, and technology in line with Saudi Vision 2030.
– The move strengthens trade ties with China, as Saudi dairy and aquaculture exports enter the market and e-commerce giants expand into the kingdom.
Saudia Cargo, Saudi Arabia’s national air freight carrier, has launched a new joint venture in Hong Kong aimed at deepening its presence in China and Asia, with a focus on key sectors including agriculture, e-commerce, and technology. The move aligns with Saudi Vision 2030’s goal of economic diversification beyond oil.
CEO Loay Mashabi described the Far East as vital to Saudi trade strategy, noting the long-term commitment to building resilient, profit-maximising operations regardless of short-term geopolitical tensions. “We must build models that thrive in good times and survive the bad,” he said.
The new venture, Saudia Cargo Global, is a partnership with Hong Kong-based TAM Group and will leverage Hong Kong’s role as a strategic logistics hub. It promises enhanced services tailored for the Chinese market, including specialised logistics for agricultural and pharmaceutical goods, and advanced e-commerce freight solutions.
With China being Saudi Arabia’s largest trade partner in agriculture and food products, the collaboration is already bearing fruit. Following recent export agreements, Saudi dairy and aquaculture products are now entering the Chinese market. Mashabi also highlighted opportunities created by Chinese e-commerce giants like Shein and Alibaba expanding into Saudi Arabia, positioning the kingdom as a future export hub.
Saudia Cargo plans to double its freighter fleet to 16 aircraft within three years, with significant capacity allocated to Asia. Combined with over 140 passenger aircraft from its parent company, the group connects to more than 100 airports globally.
With cargo hubs already operating in key Chinese cities including Beijing, Shanghai, and Hong Kong, the carrier is also exploring new partnerships with additional airports and airlines across China.
This latest expansion marks a strategic step in boosting agricultural trade between Asia and the Middle East through robust, integrated logistics solutions.
