SAUDIA Cargo, the national air cargo carrier of Saudi Arabia, has announced plans to set up a joint venture with a Hong Kong-based agent to expand its operations into China and the Asia-Pacific region.
This move aligns with the Hong Kong Special Administrative Region government's initiatives to strengthen ties with the Middle East, according to media reports.
The new venture, saudia Cargo Global, aims to serve as a springboard for the global cargo carrier to tap into the Chinese market by leveraging Hong Kong's position as a cargo hub in the e-commerce era.
The new firm will provide services that include freighter operations leveraging Hong Kong's strategic location; e-commerce logistic solutions to capitalise on China's online trade; and specialised pharmaceutical transport meeting global standards.
Saudia Cargo's CEO and managing director Loay Mashabi said: 'This venture, aligned with Saudi Arabia's Vision 2030, is crucial for diversifying our economy, boosting non oil exports, and accelerating the kingdom's rise as a global logistics hub.'
Even amid trade and geopolitical tensions like the escalating Iran-Israel conflict, trade volume - at least from the Saudi Arabia side - would not slow down, as the country's economy and projects would keep pushing ahead, Mr Mashabi said.
The company's commitment to Asia, and China specifically, was for the long haul, he added.
Its Chinese strategic partner and logistics player, TAM Group, also prioritises the new venture. TAM Group founder and chairman Tam Wing-kun expressed his confidence in the ability to build Saudia Cargo Global into a dominant force in the air cargo industry.
TAM Group is a sales and services agent representing 32 carriers globally, with 38 branches in 17 countries across Asia-Pacific, the Americas and Europe.
Saudia Cargo plans to double its fleet of freighter planes to 16 in the next three years, and 'a lot will be going to the Far East', Mr Mashabi said.
China's e-commerce giants, like Shein, Teemu and Alibaba Group Holding, have expanded into the kingdom.
'This is great news for us because if Chinese e-commerce has hubs in Saudi, then this is also the export potential of Saudi to the rest of the world,' Mr Mashabi said.
SeaNews Turkey
This move aligns with the Hong Kong Special Administrative Region government's initiatives to strengthen ties with the Middle East, according to media reports.
The new venture, saudia Cargo Global, aims to serve as a springboard for the global cargo carrier to tap into the Chinese market by leveraging Hong Kong's position as a cargo hub in the e-commerce era.
The new firm will provide services that include freighter operations leveraging Hong Kong's strategic location; e-commerce logistic solutions to capitalise on China's online trade; and specialised pharmaceutical transport meeting global standards.
Saudia Cargo's CEO and managing director Loay Mashabi said: 'This venture, aligned with Saudi Arabia's Vision 2030, is crucial for diversifying our economy, boosting non oil exports, and accelerating the kingdom's rise as a global logistics hub.'
Even amid trade and geopolitical tensions like the escalating Iran-Israel conflict, trade volume - at least from the Saudi Arabia side - would not slow down, as the country's economy and projects would keep pushing ahead, Mr Mashabi said.
The company's commitment to Asia, and China specifically, was for the long haul, he added.
Its Chinese strategic partner and logistics player, TAM Group, also prioritises the new venture. TAM Group founder and chairman Tam Wing-kun expressed his confidence in the ability to build Saudia Cargo Global into a dominant force in the air cargo industry.
TAM Group is a sales and services agent representing 32 carriers globally, with 38 branches in 17 countries across Asia-Pacific, the Americas and Europe.
Saudia Cargo plans to double its fleet of freighter planes to 16 in the next three years, and 'a lot will be going to the Far East', Mr Mashabi said.
China's e-commerce giants, like Shein, Teemu and Alibaba Group Holding, have expanded into the kingdom.
'This is great news for us because if Chinese e-commerce has hubs in Saudi, then this is also the export potential of Saudi to the rest of the world,' Mr Mashabi said.
SeaNews Turkey
