By Maria Kalamatas — September 4, 2025
RIYADH — September 4, 2025. Freight forwarders across the Gulf woke up today with a new option on their radar. FedEx has cut the ribbon on a regional hub in Riyadh, a project valued at $1.5 billion, supported by Boeing 777 freighters flying six times a week to Europe and the United States.
“For years we’ve leaned almost entirely on Dubai,” said a forwarding manager based in Dammam. “Riyadh wasn’t in our plans at all. Now we suddenly have an alternative, and the timing advantage could be significant.”
A deliberate move under Vision 2030
The decision ties directly into Saudi Arabia’s Vision 2030 program, which aims to make the Kingdom a global trade and logistics platform. With Riyadh now positioned as a cargo gateway, FedEx is clearly betting on growth in e-commerce flows, pharmaceuticals, and perishables.
A logistics analyst in Bahrain summed it up: “This is not just extra lift. It’s a message. Riyadh wants to be seen as the connector between Asia, Europe, and the Americas.”
What it means for forwarders
Shorter transit times: critical shipments could reach Europe or the U.S. in as little as 48 hours.
More reliability: a fully controlled FedEx operation means fewer handovers and less risk of clearance delays.
Extra capacity: forwarders can secure long-haul cargo space outside the crowded Dubai and Doha corridors.
One Jeddah-based forwarder reported: “Clients are already asking if we can move electronics and fashion items through Riyadh. They want faster speed to market, and this looks like a chance to deliver it.”
The competitive landscape
Dubai still dominates, but Riyadh’s entrance changes the conversation. If FedEx succeeds in diverting volumes, other carriers will feel the pressure to adjust schedules and capacity. For forwarders, the priority now is to lock in space before the new flights hit full load.
