Saudi Arabia to Localize Railway Industry Through New Initiatives

The conference will provide a stage for local and worldwide railway sector innovations and developments to be highlighted.

With over 50% of expenditures in 2023 focused on local initiatives, Dr. Al-Malik underlined SAR's successes in raising local expenditure inside the railway industry. Using alliances with private sector companies, SAR wants to increase this percentage to 60% by 2025. SAR will expose throughout the conference specific aims and investment prospects, including the building of factories inside Saudi Arabia , the localization of railway services, and knowledge transfer from world leaders in the railway business. These initiatives complement SAR's approach to empower small and medium-sized businesses (SMEs), assist in private sector development, and fund environmentally friendly new technologies.

Localization and Job Creation Efforts

Over recent years, SAR has implemented several initiatives, in collaboration with government and private stakeholders, to localize industries related to train operations and infrastructure maintenance. This has not only increased local spending but also created over 10,000 direct and indirect jobs. The localization rate for jobs in the sector has surpassed 88%, demonstrating SAR’s commitment to building a skilled workforce in the Kingdom.

Being the first country in the area to embrace fast electric trains with zero carbon emissions, such the Haramain High-Speed Train, Saudi Arabia leads in the railway industry, Dr. Al-Malik further disclosed that SAR marks a first for the Middle East and Africa by having innovative trials with hydrogen-powered trains. SAR's participation in the Saudi Green Initiative includes these tests, and preparations for next stages of hydrogen train tests are under progress.

Environmentally friendly and naturally more sustainable than conventional road-based solutions is rail transportation. Reducing the amount of trucks and cars on highways helps SAR's railway systems assist lower harmful carbon emissions, preserve road infrastructure, and improve traffic safety.

Because of their effectiveness in moving commodities and enabling trade, railroads are pillar of global logistics and economic development. Dr. Al-Malik underlined the strategic relevance of Saudi Arabia's railroads in preserving world trade continuity, especially in view of geopolitical issues. For example, SAR's freight trains effectively carried big amounts of containers and merchandise to Riyadh via the railway network when several shipping lines diverted their itineraries to Saudi ports in the Eastern Province.

Two initiatives that Dr. Al-Malik emphasized as transforming ones are the Gulf Linkage Project and the Land Bridge, These projects will not only help Saudi Arabia but also surrounding nations by improving regional connectivity and trade, so realizing Saudi Arabia's Vision 2030, which seeks to position the Kingdom as a global logistics hub linking Asia, Africa, and Europe.

The forthcoming Saudi International Railways Conference highlights SAR's initiatives towards National Strategy for Transport and Logistics attainment, The event seeks to draw innovative rail transportation technology and promote international cooperation to improve Saudi Arabia's global logistics center's profile. These developments fit the main objectives of Vision 2030—sustainable development and economic diversification.

SAR’s localization program and its ongoing efforts reflect Saudi Arabia’s ambition to transform its railway industry into a model of innovation, sustainability, and efficiency. Through strategic investments, knowledge transfer, and job creation, the Kingdom is set to become a leading player in the global logistics and transportation sector.

Saudi Arabia to announce program for localizing railway industry next week

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