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JEDDAH: Commercial registrations in ������Ƶ’s Madinah transport and storage sector rose from 970 in 2019 to 2,817 by the end of 2024, reflecting strong five-year growth in the logistics industry.

The 190 percent growth over the period also translates to an average annual increase of 38 percent, according to a recent economic report issued by the Madinah Chamber of Commerce and Industry.

The analysis, also published by the Saudi Press Agency, emphasized that this expansion reflects growing investor interest and highlights the effectiveness of the region’s investment environment, as well as the local market’s capacity to accommodate increased activity in transport and storage.

It also further affirmed the sector’s pivotal role in supporting commercial, industrial, and tourism-related activities in the region.

Madinah’s emergence as a logistics hub is underpinned by a well-developed infrastructure network, including three airports, an extensive highway system linking five regions, the Haramain High-Speed Railway, and two key ports — one commercial and the other industrial. This strategic connectivity facilitated nearly $1.1 billion in non-oil exports and over SR5.25 billion ($1.40 billion) in imports in 2021.

The region’s broader economy has also shown significant momentum, with the hotel sector recording a 42 percent year-on-year increase in 2024, and tourism-related enterprises, such as organized travel and tour services, expanding by 33 percent.

“The sector’s accelerating activity coincides with the implementation of major development projects in Madinah, with a total estimated value exceeding SR213 billion,” SPA stated.

It added that these projects span multiple sectors, including infrastructure, urban expansion, and tourism services, as well as the Madinah humanization initiative, and transport and logistics, noting that these initiatives aim to streamline supply chain operations and enhance connectivity between development sites within and beyond the city.

The report further stated that the rise in commercial registrations also signals growing interest from investors and entrepreneurs in this field, which serves as a central link in production and distribution chains.

“It provides a favorable environment for the development of logistics services and the advancement of modern transport capabilities.” SPA report added.

The news agency concluded that these indicators confirm that the transport sector has become an integral component of Madinah’s economic structure, contributing to the integration of development projects and supporting stability and growth in the local market.

An earlier report by the region’s chamber on the first quarter of 2025, released in May, highlighted positive transformations in the area’s economy. The region’s gross domestic product reached SR57.6 billion in the third quarter of 2024, reflecting a 2.8 percent growth compared to the same quarter of the previous year.

Madinah also recorded the second-highest growth rate in local demand at 11 percent, based on point-of-sale transactions, following Riyadh.

The first quarter report revealed a drop in the region’s unemployment rate to 8.4 percent in the fourth quarter of 2024, down from 10.3 percent in the previous period, as employment rose to over 458,000, with economic activity concentrated in construction, trade, and manufacturing.

The study also revealed progress in major development projects across the Madinah region, with around 213 projects under implementation, valued at over SR210 billion.

“These include 188 private sector projects and 15 government projects. The total investment land area allocated for these projects exceeds 15 million sq. meters, with expectations of generating over 119,000 future job opportunities,” the release stated.

It added that the commercial sector accounted for the largest share of these projects, with 153 developments, followed by 27 mixed-use residential-commercial undertakings.

Other initiatives spanned the healthcare, education, tourism, and religious sectors.

RIYADH: Jordan aims to lower its public debt-to-gross domestic product ratio to 80 percent by 2028 under an International Monetary Fund-backed reform program, according to a government official. 

Finance Minister Abdul Hakim Al-Shibli said the plan is designed to strengthen macroeconomic and financial stability, support sustainable growth, and maintain fiscal space without adding burdens on citizens, according to a statement reported by the Jordan News Agency, also known as Petra. 

This comes as the IMF completed the third review of Jordan’s Extended Fund Facility and approved a new 48-month, $700 million Resilience and Sustainability Facility on June 25. 

The new facility is intended to enhance long-term resilience in the energy, water, and health sectors while advancing climate and pandemic preparedness efforts. 

The Petra report stated: “Al-Shibli explained that the reform package aligns with Jordan’s Economic Modernization Vision and encompasses a broad array of structural measures, including enhancements to tax compliance, expansion of the tax base, fiscal sustainability in the electricity sector, improvements in public service delivery, and a more conducive environment for private sector-led job creation.” 

It added: “He underscored that the successful completion of the third review under the national reform program constitutes a strong vote of confidence in Jordan’s economic resilience and the effectiveness of its fiscal and monetary policies, especially amid regional instability.” 

The minister said completing the review will release $134 million from the IMF, helping improve liquidity and boost investor confidence. 

Addressing public concerns that IMF-backed reforms could lead to higher taxes or austerity measures, Al-Shibli emphasized that Jordan’s engagement with the fund is based on a collaborative, nationally driven framework. 

“From the outset, Jordan has insisted that the program’s objectives align with our national strategies particularly the Economic Modernization Vision while ensuring no additional financial burdens are placed on citizens,” he said. 

Al-Shibli noted that the $700 million Resilience and Sustainability Facility, approved by the IMF’s Executive Board, will fund priority capital projects while promoting energy efficiency, water resource management, and pandemic preparedness. 

These funds, deposited with the central bank, were strategically used to redeem maturing eurobonds, helping avoid costly new issuances. Al-Shibli noted that current market conditions could have pushed interest rates as high as 9 percent, compared to the 4.8 percent yield secured through a recent sukuk issuance. 

The IMF praised Jordan’s stronger-than-expected performance in 2024, with full-year GDP growth reaching 2.5 percent, exceeding projections of 2.3 percent. This helped maintain the country’s sovereign credit rating and reflected sound fiscal and monetary management amid geopolitical uncertainty. 

This comes after Jordan’s GDP grew by 2.7 percent at constant prices in the first quarter of 2025, up from 2.2 percent during the same period last year, according to the Department of Statistics, as reported by the Jordan News Agency. 

Addressing rising debt levels, Al-Shibli said public debt stood at 35.8 billion Jordanian dinars ($50.49 billion), or 93 percent of GDP, in early 2025. He attributed the increase to fiscal deficit financing, losses at state utilities, and the inflow of $1 billion in concessional loans. 

However, debt is expected to decline to 35.3 billion dinars by the end of June, with the debt-to-GDP ratio — excluding Social Security Investment Fund holdings — seen falling to about 91 percent. 

On the sectoral front, and according to data from the Department of Statistics, agriculture recorded the highest growth in the first quarter of 2025 at 8.1 percent, followed by the electricity and water sector at 5.8 percent, and manufacturing at 5.1 percent. 

The manufacturing sector made the largest contribution to overall GDP growth, followed by agriculture and the finance, insurance, and real estate sectors.