The agreement aims to create a unified service model. (Image source: Maersk)

Maersk Saudi Arabia (Maersk) and the Saudi Post Company (SPL) have signed a strategic Memorandum of Understanding (MoU) to enhance logistics and supply chain services for ecommerce companies operating in Saudi Arabia and potentially the wider GCC region.

The agreement aims to create a unified service model that meets the growing demand for efficient, end-to-end logistics solutions across regional and global markets.

The partnership will integrate Maersk’s global shipping and logistics capabilities with Saudi Post’s strong national delivery network.

By aligning their strengths, both organisations aim to offer a seamless logistics experience tailored to international eCommerce businesses looking to establish or scale operations within the Kingdom.

Enhancing regional logistics

Saudi Post’s in-country network, developed in line with Vision 2030 objectives, will connect with Maersk’s international infrastructure to deliver greater speed, efficiency, and reliability to customers.

Under the partnership, Saudi Post will manage all domestic services, including express customs clearance and last-mile delivery, while Maersk will handle the origin-side operations, international transport, and bonded fulfilment.

The collaboration will be supported by Maersk’s newly inaugurated Integrated Logistics Park in Jeddah, positioning Saudi Arabia as a vital regional logistics hub.

The MoU outlines joint efforts in digital system integration to ensure smooth data exchange, shared marketing and commercial initiatives to target global ecommerce clients, unified customer service protocols for consistent quality, and operational improvements to optimise capacity and performance.

This strategic alliance is expected to accelerate the development of a robust ecommerce ecosystem and reinforce the Kingdom’s role as a logistics leader in the Middle East.

"We are excited to partner with Saudi Post, who operate an unparalleled distribution network in Saudi Arabia, to create an integrated logistics solution that addresses the growing demand for efficient eCommerce fulfilment in the country," said Ahmed Al Olaby, director, Maersk Saudi Arabia, after signing the MoU. "Our extensive, global ocean network, along with the newly opened Integrated Logistics Park, would combine with Saudi Post's extensive domestic network, positioning us to deliver world-class logistics services that support businesses looking to enter or expand in the Saudi market."

“The strategic collaboration between SPL and Maersk is pivotal in streamlining cross-border e-commerce flows to and from The Kingdom of Saudi Arabia and the wider GCC, enhancing connectivity, reliability, and growth opportunities across the region”, said Rouni Saad, international business sales director, SPL Group.

Both companies said that the MoU "directly contributes to Saudi Arabia's Vision 2030 objectives by enhancing the Kingdom's logistics infrastructure, supporting the growth of the eCommerce sector, and facilitating international trade."

This could attract more international businesses to set up shop in Saudi Arabia, while providing them with reliable and efficient logistics solutions.

Also read: Saudi Global Ports awarded terminal concessions on the Kingdom's eastern coast

SGP plans to invest over US$187mn. (Image source: SGP)

Saudi Global Ports Group (SGP), through its subsidiary Modern Port Services Company Limited (SGP Multipurpose Terminals, or SGPMP), has signed four 20-year concession agreements with the Saudi Ports Authority (Mawani) to operate multipurpose terminals along the Eastern Coast of Saudi Arabia.

The terminals are located at King Abdulaziz Port Dammam (KAPD), Jubail Commercial Port (JCP), King Fahad Industrial Port Jubail (KFIP), and Ras Al-Khair Port (RAK).

The agreements were signed by SGP CEO Rob Harrison and Mawani’s Acting President Mazen bin Ahmed Al-Turki, in the presence of the Minister of Transport and Logistics Services, H.E. Saleh Al Jasser, along with Saudi Global Ports chairman Eng. Abdullah Al Zamil and vice chairman Bakr AlMuhanna.

Already a key player in Saudi Arabia’s terminal operations, SGP manages container terminals at KAPD and operates the Riyadh Dry Port Ecosystem, including the Riyadh Dry Port, Riyadh Empty Yard, and Dammam Empty Container Yard.

It is also developing the Dammam Integrated Logistics Zone (DILZ). In 2024, SGP handled more than 4 million TEUs across its network, reinforcing its leadership in the sector.

Expanding logistical operations

Under the new concessions, SGP plans to invest over SAR 700 million (approximately US$187mn) to modernise the terminals and procure advanced equipment.

The group intends to integrate the four new sites with its existing network in Dammam and Riyadh to create efficient, resilient gateways that support Saudi Arabia’s rapid development and major infrastructure projects.

With the support of its technical partner PSA International, SGP will launch tailored training programmes focused on safety, operational efficiency, and sustainability, drawing on PSA’s global experience in managing multipurpose terminals.

Chairman of the Board of Saudi Global Ports Company, Eng. Abdullah Al Zamil said, “SGP, as one of the National Champions for Ports and Logistics in Saudi Arabia, is proud to be entrusted with this opportunity to nurture and grow the four multipurpose terminals along the Eastern Coast of Saudi Arabia. We will strive to provide the same reliability, integration and spirit of innovation at the multipurpose terminals as we have done so for the container terminals at KAPD, the Riyadh Dry Port Ecosystem and DILZ. We are grateful to Mawani for entrusting SGP with these concessions.”

Vice chairman of the Saudi Global Ports Board, Bakr AlMuhanna highlighted, “The agreement between SGP and Mawani is pivotal in driving economic diversification under Saudi Arabia’s Vision 2030. By integrating and modernising key terminals, SGP, together with its technical partner, PSA International, brings their expertise to enhance supply chain efficiency, support critical mega projects, and strengthen the Kingdom’s position as a global logistics hub.” 

Regional CEO Europe & Mediterranean and Middle East South Asia, PSA International, Vincent Ng said, “PSA is proud to be alongside Saudi Arabia’s growth journey for over 10 years. We are excited to continue to work alongside PIF, Mawani and other stakeholders in the Kingdom, supporting SGP with our global expertise and network as it expands its ecosystem to include capabilities that can bring new and differentiated value to the Kingdom’s ports and logistics sector.”

Also read: UAE's DP World increases investments in sub-Saharan Africa

Grandweld recently decided to generate a major portion of its energy through solar power. (Image source: Grandweld Shipyards)

Jamal S. Abki, general manager of Grandweld Shipyards, speaks to Technical Review Middle East on the company's latest updates. Read on: 

Grandweld recently decided to generate a major portion of its energy through solar power. What drove this shift?

We believe that sustainability should not be treated as just a passing trend but a long-term strategic priority. Our decision to shift to solar power was driven by a deep commitment to align with the UAE’s forward-thinking environmental vision, particularly the Dubai Clean Energy 2050 and Dubai Net Zero Emissions Strategy 2050. Today, we generate 50% of our total energy needs through our solar power project, which has a current production capacity of 569 kWp, supporting both our ship building operations and our offices.

By becoming the first shipbuilder in the region to adopt solar power at this scale, we aim not only to reduce our carbon footprint but also to demonstrate that sustainable shipbuilding is both achievable and scalable. Our goal is to become a 100% green shipyard by the end of this year, with Phase Two of the project expected to conclude soon and set to increase total capacity to 1.3 MW. 

^{The Grandweld shipyard's solar rooftop}

What are some of the most transformative technologies currently being adopted at Grandweld?

The integration of advanced technologies has significantly enhanced the efficiency and precision of our operations. Having an in-house facility allows us to maintain full control over quality and timelines.

We have adopted high-precision tools like Computer Numerical Control (CNC) technology into our shipbuilding and repair processes, including a state-of-the-art 4-axis CNC lathe machines, which enables us to produce complex, high-precision components tailored to client specifications, whether for small-batch production or high-volume orders.

Additionally, the use of Optical Emission Spectrometers (OES) technology enhances quality control and operational efficiency, especially in raw material or sample identification.

We further offer specialised 4-stroke engine services and refurbish marine alternators through precise rewinding techniques that extend their operational life. Moreover, our vessels, such as the recently delivered FNSA 7, are equipped with real-time remote monitoring systems and full digitalisation packages. These technologies support predictive maintenance and continuous performance tracking, helping reduce downtime and improve overall vessel reliability.

^{Jamal Abki, general manager of Grandweld Shipyards}

Can you tell us more about your foray into military vessel construction and how you see this segment evolving in terms of scalability and innovation?

With the Middle East military vehicles market estimated at US$34.25bn in 2025 and expected to reach US$46.49bn by 2030, at a CAGR of 6.3%, our transition into the defence sector has been both timely and impactful. We have secured US$65.8mn across 15 shipbuilding projects within the GCC and successfully delivered 12 vessels, underscoring our position as a trusted partner for both commercial and defence clients. 

Our initial military supplies, including a 45m Fast Attack Craft and a 17m Interceptor Vessel, met stringent defence standards and showcased our technical expertise, highlighted by the Interceptor’s surface drive propulsion system and the Fast Attack Craft’s precision performance.

^{A military vessel built by Grandweld}

Building on this momentum, we made a strong statement at NAVDEX 2025 with the unveiling of two advanced naval security platforms. One was the FA-400 Offshore Patrol Vessel, co-developed with ADSB and EDGE for ISR, zone surveillance, and rapid-strike operations. The other one was a 21-meter high-speed, lightweight Patrol Vessel designed for coastal defence.

Defence clients are now increasingly demanding modular vessel designs that allow multi-mission reconfiguration, integrated sensor suites, and hybrid propulsion systems. Our future roadmap includes expanding our defence portfolio with vessels offering enhanced automation and mission flexibility, ensuring Grandweld remains at the forefront of naval innovation amidst an evolving geopolitical landscape.

How is Grandweld contributing to designing vessels that support regional trade and sustainability goals?

From aluminium-hull crew boats that offer low-emission, high-speed personnel transfers to offshore patrol vessels designed for secure navigation in high-traffic zones, every vessel is purpose-built to optimise performance and minimise environmental impact.

To further align with the UAE’s green economy vision, we are also investing in next-generation shipbuilding technologies that promote sustainability and efficiency. Our focus includes integrating energy-efficient propulsion systems, advanced automation, and modular designs that not only reduce waste but also increase vessel versatility. These innovations support both economic resilience and environmental stewardship, enabling our clients to meet rigorous operational demands while advancing sustainability goals.

The MoU marks the beginning of discussions around a potential distribution agreement in Saudi Arabia. (Image source: Joby)

Joby Aviation, a developer of electric vertical take-off and landing (eVTOL) aircraft designed for commercial passenger transport, has partnered with Saudi Arabia’s Abdul Latif Jameel, a diversified business group. 

The MoU marks the beginning of discussions around a potential distribution agreement in Saudi Arabia for Joby’s electric air taxis. Over the coming years, the partnership could see up to 200 Joby aircraft and associated services delivered, with an estimated value of around US$1bn. The Jameel family previously took part in Joby’s Series C investment round in 2020, led by Toyota Motor Corporation.

“This collaboration is about bringing America’s leadership in electric air mobility to the world,” said JoeBen Bevirt, founder and CEO of Joby Aviation. “Together with Abdul Latif Jameel, we’re not just imagining a cleaner, safer, more efficient future—we’re building it. And there is no better partner to help unlock the extraordinary opportunity for air travel in the region.”

Hassan Jameel, vice chairman, Saudi Arabia, Abdul Latif Jameel, stated, “Saudi Arabia is transitioning toward a new era of mobility—one that is on-demand, shared, connected, and sustainable. eVTOL is an exciting and important component of this. We are looking forward to collaborating with Joby to support the transformation of the Kingdom’s mobility sector. This collaboration also comes as Abdul Latif Jameel Motors marks 70 years of distributing Toyota in Saudi Arabia — a strategic investor in Joby.”

Initially, the collaboration will centre on the Saudi market, where Abdul Latif Jameel possesses robust infrastructure, a vast network, and deep-rooted expertise. Areas of focus will include potential distribution agreements, establishing air taxi operations, and developing services such as pilot training and MRO (Maintenance, Repair, and Overhaul).

Joby’s piloted, all-electric aircraft is engineered to accommodate four passengers and reach speeds of up to 200 mph. With near-silent flight compared to traditional helicopters and zero operational emissions, the aircraft represents a leap forward in sustainable transport. The company intends to launch its first passenger service in Dubai by 2026. 

With mobility playing a critical role in Saudi Arabia’s urban evolution, the partnership is expected to contribute to national economic development and job creation, supporting the objectives of Vision 2030.