Amazon adds three more logistics centers to expand into Saudi Arabia

It is reported that this expansion will increase Amazon Saudi Arabia's warehousing capacity by 89% and its order delivery coverage network by 58%.

Currently, Amazon operates three logistics centers, 11 delivery stations and two sorting centers in Riyadh, the capital of Saudi Arabia, and the port city of Jeddah. Amazon plans to increase the number of logistics centers to six and the number of delivery stations to 13 by the end of this year. In addition, 11 new office buildings will be used in the entire logistics network, while some old facilities will be closed or upgraded.

Amazon will increase storage capacity by building new infrastructure and closing old facilities. And through upgrades, it will provide consumers with a smarter, faster and more consistent experience. By the end of 2021, Amazon's logistics network will cover a total construction area of ​​more than 867,000 square feet. In addition, Amazon is also working with Saudi Post and other service partners.

Prashant Saran, Amazon’s director of operations for the Middle East and North Africa, said: “We are contributing to the local economy by creating new jobs. Our investments in technology and infrastructure are in line with Saudi Arabia’s digital transformation goals, enabling our partners to deliver world-class products and providing our customers with a faster selection of products.”

However, Amazon did not disclose the specific amount of the investment, nor did it disclose the number of employees currently employed in Saudi Arabia.

Saudi Arabia's e-commerce market has grown significantly since the outbreak of the COVID-19 pandemic as people were forced to stay at home and shop online. According to research firm Statista, Saudi Arabia's e-commerce will reach $7.051 billion this year and grow at an annual rate of 5.38% to $8.697 billion by 2025.

A survey of 900 Saudi online shoppers conducted late last year by advertising platform Criteo found that 58% of Saudi respondents said they felt more comfortable shopping online than in a physical store. When it comes to service considerations, 35% of respondents said shipping costs were an important factor in their decision-making process.

middle East