East Africa

Saudi Connection to the African Markets

The Saudi Ports Authority (MAWANI) has announced the launch of a new shipping lane connecting Saudi Arabia with East African countries, to be provided through French giant logistics company and shipping line, CMA CGM. The new ‘JEDDEX’ shipping service will provide a weekly direct service between Saudi Arabia, Somalia and Kenya, with four ships plying the route, each with 1,100 TEU nominal capacity.

The new shipping lane will connect the King Fahd Industrial Port in Yanbu and the Jeddah Islamic Port in Saudi Arabia, with the ports of Mogadishu and Mombasa in Somalia and Kenya respectively. The port rotation will be Yanbu - Jeddah - Mogadishu - Mombasa - Yanbu.

The new service will make JEDDEX the first container service to link the fast-growing Yanbu port with the international shipping lines that connect to the port at Jeddah, which joins much of Saudi Arabian trade to the rest of the world and, in particular, Europe. The new route should cut shipping times between Mombasa and Jeddah by up to seven days, as currently cargo is required to go via European ports such as Antwerp and Genoa, which can take up to 29 days.

saudi Africa Trade

Relay services for the JEDDEX service will also be available between Jeddah and Northern European, Mediterranean and Red Sea ports. Relay services for imports from the US East Coast have also been proposed in the future.

According to MAWANI, the JEDDEX service reflects its ongoing efforts to build strategic partnerships with major international shipping lines, develop the capabilities of Saudi port infrastructure, boost exports and imports, and increase investment flows and non-oil state revenues. It believes that the new East African shipping lane will result in increased exports of local products, drive greater capacity of cargo handling at Saudi ports, increase direct imports from East Africa, and expand regional trade.

Saudi Arabia is the 20th largest exporter of goods and the 32nd largest import market in the world. Foreign trade represents 67% of its GDP (2019). Petroleum products represent a large majority of exports (76.4% of total exports in 2017, 78.5% in 2018), followed by petrochemical products (propylene, ethylene, etc.). 

Automobile accounts for the largest share of imports, followed by telecommunication devices and medicine.

Saudi Arabia’s main export partners are the UAE, China, India, Singapore and Belgium. Its main import partners are China, the United States, UAE, Germany and India. In order to promote international trade, attract foreign investment and diversify the non-oil sectors, the government announced plans to establish four ‘economic cities’ in different regions of the country.

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