"The Communications and Information Technology Commission": Licensing of Three Global Companies for Parcel Delivery Services in the Kingdom in Final Stages

The Communications and Information Technology Commission revealed that the granting of the necessary licenses to three global companies to operate in parcel delivery services in the Kingdom is in its final stages, with their entry into the local market expected to inject investments estimated at around SAR 6 billion.

The three companies' investments will benefit postal and logistics services infrastructure, contribute to increasing the sector's domestic output, and align with the objectives of Saudi Vision 2030, which aims to make the Kingdom a leading global logistics hub and a connecting point for the three continents.

The Commission's regulation of the sector has led to the development of infrastructure in the Kingdom and increased capacity in postal service operations. These regulations will also contribute to relocating regional sorting and distribution centers to the Kingdom, in addition to strengthening the Kingdom's position as a leading global logistics hub, as the postal sector is witnessing growth in the number of licensed parcel delivery service providers, reaching 20 (international) providers and 35 (local) providers.

It is worth noting that the postal sector, since the Communications and Information Technology Commission took over its regulation in the second half of 2019, has witnessed growth in the parcel market, with the number of parcels rising by 160% during this period to exceed 20.3 million parcels during the first quarter of 2021, alongside an increase in the number of licensees to 42 companies, a growth rate of 367%, and market size growth of 23% by the end of 2020, reaching SAR 6.4 billion.