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FEATURE: Almajdouie leverages Saudi’s Vision 2030

by ASC Staff on Dec 6, 2017


Almajdouie Logistics network includes more than 7,000 trucks and 2,000 trailer that are owned by the group, as well as 400 axle lines for the project logistics operations and more than 2-million sqm of terminals and warehouses in the region.
Almajdouie Logistics network includes more than 7,000 trucks and 2,000 trailer that are owned by the group, as well as 400 axle lines for the project logistics operations and more than 2-million sqm of terminals and warehouses in the region.

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Almajdouie Logistics is a two-time winner in its category at the Logistics Middle East Awards, the only private Saudi Arabian company to make it into the Guinness Book of Records and the largest project logistics provider in the Kingdom by a significant margin. Despite this undiluted success, CEO Baheej Al Biqawi is keeping a watchful eye on new opportunities for the company as Saudi Arabia transitions from an oil export hub into a more diversified economy within the GCC.

“Our focus for the past three decades has been oil and gas, because we’re based in Dammam and the kingdom was booming in this sector. But we have diversified our customer portfolio through the years,” he explains. In fact, Almajdouie Logistics has for the past 20 years handled the Saudi Arabian distribution contract for Coca-Cola, and is now also handling domestic logistics operations for Burger King, Hanna Water, Novo Water and many dairy brands. Nada Dairy is a client for whom it distributes across the entire GCC.

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“From a warehousing perspective, we do a lot of oil and gas, but we also have a strong FMCG portfolio and from our warehouses in Jebel Ali we’re also doing e-com logistics,” says Al Biqawi. “E-commerce is a major opportunity for Almajdouie, given the total volumes of e-commerce goods consumed within the country. The logistics part is the main component to a successful e-com company, how quick you are in delivering to the market is key, this is what differentiates the different platforms from one another.”

However, he adds that the current logistics model is not favourable for these companies to respond quickly to market demands. “Sooner or later everyone will have their own hub in Saudi Arabia, not only in Jebel Ali. In the next two to three years there will be a big shift toward Saudi Arabia becoming the main hub for the whole of the Middle East,” he says, and because the e-com industry is moving much faster than any other sector and even faster than logistics providers can keep up, Almajdouie Logistics is positioning itself to pick up the slack.


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