Population growth and strong economy expand KSA’s share in global delivery service revenues
The Kingdom of Saudi Arabia's growing population of nationals and expatriates and its strong economy are accelerating the growth of the local delivery services sector. Major international express distribution players such as TNT affirm that the Saudi market is increasing its contribution to their global operating incomes.
Around 26.5 million people live in the Kingdom, an estimated 26 per cent of who are expatriates. The population is expected to climb to as high as 31.7 million over the next five years, with expatriates expected to number between 7.9 to 8.5 million. This demographic profile along with the robust local economy requires a wide range of services such as express delivery.
TNT SAB Express, one of the KSA's leading express freight companies and the local arm of express delivery services multi-national TNT Express N.V., is leveraging positive market conditions by expanding the scope of its activities and services, while also increasing headcount and transferring its main branch in Jeddah to new executive offices. The company had recently announced a 30 per cent increase in revenues for the first half of 2010 over the same period last year and has introduced two additional retail outlets in Jeddah, located in the historic area of Al-Balad and Prince Majed Street.
"Saudi imports have grown significantly over the past few years and have catapulted the country ahead of other leading Middle Eastern countries in the logistics field. Our strong performance for the first half of this year especially reflects the growing opportunities in the Kingdom's delivery services sector, and we are adopting fresh strategies to become even more visible in this growth market. Our move to new offices will further enhance our image and leverage the strong global patronage enjoyed by the TNT brand," said Martyn Wright, Managing Director, TNT SAB Express Saudi Arabia.
TNT SAB Express is the Saudi arm of TNT Express, the express delivery services division of international express and mail company TNT N.V. TNT N.V. fully owns operations in 64 countries and delivers documents, parcels and freight to over 200 countries which enables TNT SAB Express to provide businesses and consumers worldwide with an extensive range of services for their express delivery needs into and out of the Saudi market.