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RIYADH: The Red Sea Gateway Terminal has signed an agreement with French-based CMA CGM Group to develop and operate a fourth container terminal at Jeddah Islamic Port, the Saudi Ports Authority announced. 

The agreement worth SR1.7 billion ($433 million) was signed during the ninth annual edition of the Future Investment Initiative in Riyadh, the Saudi Press Agency reported. 

The agreement aligns with ��������’s National Industrial Development and Logistics Program aims to increase the contribution of the logistics sector to the Kingdom’s gross domestic product to 10 percent by 2030, up from 6 percent now. 

The SPA report added that the fourth container terminal at the Jeddah Islamic Port is expected to have a handling capacity of 2.6 million twenty-foot equivalent units, further strengthening the facility’s position as a major logistics and trade hub on the Red Sea.

SPA, quoting Suliman Al-Mazroua, president of the Saudi Ports Authority, also known as Mawani, said that the “strategic partnership reflects the Kingdom’s commitment to realizing the objectives of Saudi Vision 2030, particularly in transforming Saudi ports into world-class logistics hubs.” 

He added that Mawani is proud to support initiatives that enhance capacity, connectivity, and innovation across its port network, reinforcing the Kingdom’s role as a global gateway for trade and a driver of sustainable economic growth.

The new terminal is a part of RSGT’s broader expansion strategy at Jeddah Islamic Port under its existing long-term concession with Mawani, originally executed in 2020.

The SR1.7 billion investment will focus on building advanced infrastructure, deploying modern cargo-handling equipment, and integrating next-generation digital and sustainable technologies to enhance operational efficiency and reliability.

Once completed, the terminal will increase RSGT’s total annual handling capacity to about 8.8 million TEUs. 

The project is also expected to strengthen Jeddah Islamic Port’s competitiveness by improving service quality and connectivity through CMA CGM’s global network and RSGT’s operational expertise. 

Jeddah Islamic Port, the largest such facility on the Red Sea, plays a pivotal regional and international role due to its strategic location and 62 multipurpose berths, further cementing the Kingdom’s leadership in the global maritime and logistics sectors.

JEDDAH: UK companies are set to gain from a $6.8 billion Saudi project pipeline under a partnership between the UK export credit agency and the Kingdom’s Public Investment Fund.

PIF and UK Export Finance, or UKEF, have signed a memorandum of understanding to strengthen financial cooperation and expand trade and investment opportunities between the UK and ��������, according to a joint statement.

Through the MoU, the agency will partner with PIF and its portfolio companies to access a pipeline of existing and prospective projects that, “if backed with UKEF financing, will offer numerous supply contracts for UK-based suppliers,” the release said. 

�������� and the UK are deepening economic ties, with bilateral trade reaching $21.6 billion in 2023 and a joint target of $37.5 billion by 2030, supported by ongoing UK GCC Free Trade Agreement talks and the UK’s GREAT Futures campaign.

Investment flows remain robust, with �������� investing more than $21 billion in the UK since 2017, including $3.5 billion in the northeast, while UK foreign direct investment in the Kingdom reached $13 billion by 2023.

The agreement will also make it more attractive for companies within PIF’s ecosystem to procure goods and services from UK contractors.

Fahad Al-Saif, PIF’s head of global capital finance and investment strategy and economic insights, said that the MoU reflects PIF’s strong partnerships with a wide group of leading global financial institutions.

“This collaboration will further enable our portfolio companies to access international capital and expertise and deliver transformative projects that contribute to sustainable economic growth in line with Vision 2030,” he added.

Tim Reid, UKEF CEO, commented that ��������’s ambitious Vision 2030 program presents significant economic opportunities for British businesses.

“Through this landmark signing, we are not just opening doors – we are creating a gateway that will provide valuable new supply contracts, driving substantial economic growth across both our nations,” he said.

Reid said the partnership underscores the UK’s commitment to supporting British exporters in one of the world’s most dynamic markets, while contributing to the infrastructure and innovation shaping ��������’s future.

The MoU also establishes a framework for closer cooperation between PIF and UKEF, allowing them to share business experience, identify mutually beneficial opportunities, and support portfolio companies in accessing global markets.

The Public Investment Fund is a leading global investor, driving ��������’s economic transformation and shaping key sectors, with ratings of Aa3 from Moody’s and A+ from Fitch.

UK Export Finance, the country’s export credit agency, helps exporters manage risk and access financing, providing a record £14.5 billion last year to support over 667 companies and 70,000 jobs.