JD, Jitu, Cainiao, iMile compete in the Saudi logistics and warehousing market

With the rapid development of e-commerce in the Middle East, platforms such as SHEIN, Temu, Alibaba's AliExpress, and TikTokShop are continuously strengthening their presence in the Middle East market. However, for this mysterious land, its unique logistics environment often discourages many sellers. Therefore, logistics solutions and warehouse management have become the driving force for the development of this industry.

On June 3rd, JD Group established a strategic partnership with Saudi Electricity Company, and the two sides will cooperate in fields such as intelligent warehousing and logistics, digital supply chain, etc.

JD.com will upgrade dozens of warehouses of Saudi Electricity Company (the largest power producer, transmitter, and distributor in the Middle East and North Africa) to automation, helping Saudi Electricity Company achieve cost reduction and efficiency improvement in the entire logistics supply chain in the Middle East, North Africa, and other regions.

In March, Cainiao Group, SaudiaCargo, and Global Flight Services (WFS) officially launched a strategic partnership at Li è ge Airport, aimed at optimizing the efficiency of global logistics operations, particularly in the Middle East and European markets.

Saudi Airlines Cargo and Cainiao have a long-standing history of cooperation. In May last year, the two sides signed another cooperation agreement, stating that they would enrich and deepen capacity cooperation, continuously optimize air cargo services from China to Europe and the Middle East, and jointly explore new routes from Hong Kong, China to Africa and Latin America, further accelerating international express delivery.

Since its official operation in Saudi Arabia in January 2022, Jitu has quickly become the 20th operator in Saudi Arabia with comprehensive cross-border customs clearance and local distribution capabilities, thanks to its efficient services and extensive network coverage.

In April 2023, the Jitu Saudi Arabia Riyadh Transfer Center was put into use. The center covers an area of 10000 square meters, with a local team of over 2000 people and more than 1300 operational distribution vehicles. Warehousing and distribution centers have been established in the seven core regions of Saudi Arabia, and end of pipe distribution has achieved full coverage throughout Saudi Arabia. The maximum daily processing capacity is 200000 packages, making it the largest and most automated logistics center in the Middle East region.

Local logistics companies in the Middle East lack e-commerce genes and comprehensive supply chain considerations, which are new opportunities for Chinese express delivery companies.

Consumers in the Middle East have strong purchasing power, coupled with the high popularity of smartphones, which is beneficial for the development of e-commerce. However, the market is hot and competition is bound to exist. If sellers want to stand out in the Middle East market, there are still a series of problems that need to be considered and overcome.