In an era where climate change poses significant challenges, Saudi Arabia is leading the charge in transforming its transportation infrastructure through innovative and sustainable initiatives.
The Middle East and North Africa (MENA) region is experiencing a critical strain on its infrastructure due to rapid population growth, urbanization, and an expanding middle class. Saudi Arabia’s proactive measures are not only tackling these challenges but also serving as a model for global adaptation.
The World Bank’s 2020 report indicates that the MENA region needs an investment of a minimum of $100 billion annually over the next decade to maintain and enhance its transportation networks.
Saudi Arabia, a pivotal nation that connects Europe and Asia and a key player in the global energy sector, has an extensive network of operational facilities that support its transportation system.
A study by the King Abdullah Petroleum Studies and Research Center highlighted that the transportation sector is responsible for a substantial 33.33 percent of worldwide energy consumption, second only to the industrial sector.
Despite the challenges, Saudi Arabia is aiming to reduce its annual transport emissions growth from 7 percent historically to 3 percent by the year 2030. Projections estimate that by 2030, transportation-related carbon dioxide emissions will hit 184 million tons.
The Kingdom is implementing three key policy changes to address these issues, as detailed in a 2022 report by the Saudi Ports Authority (Mawani). These include shifting new car sales to electric vehicles—targeting 30 percent in Riyadh by 2030, electrifying public transport, and offering incentives for sustainable personal transport alternatives.
“Saudi Arabia is building larger and more sustainable transport networks that will help reduce congestion and emissions.”
Abdulla Elyas, Co-founder of Careem
Since 2015, the Kingdom has been reforming domestic energy prices and implementing fiscal reforms under the Fiscal Balance Program, which are aimed at promoting sustainable energy consumption and increasing government revenues through gradual fuel price increases.
ENOWA, a NEOM subsidiary, is setting the pace for managing sustainable energy and water systems. ENOWA CEO Peter Terium explains their strategy to utilize NEOM’s solar and wind resources, combined with innovative storage and smart grid solutions, to revolutionize sustainable energy generation and reshape the energy sector with a focus on sustainability and affordability.
ENOWA is crucial in developing infrastructure that affects various economic sectors, including transportation, construction, industrial manufacturing, and water and waste treatment.
NEOM itself is a testament to Saudi Arabia’s commitment to reinventing transportation, mobility, and infrastructure in light of climate change challenges. NEOM Mobility aims to create a sustainable and seamless experience for travel by air, land, and sea.
Ride-hailing services are also contributing to the Kingdom’s sustainable transportation landscape. Careem, which launched in 2013 and now operates in 26 cities across Saudi Arabia, is making strides in connecting various transport networks through its services.
Abdulla Elyas, Co-founder of Careem, discussed the company’s role in the sustainable transport ecosystem and the introduction of Careem Bike in Madinah. This initiative aligns with Saudi Arabia’s sustainability goals and Vision 2030’s objective to enhance the quality of life in the Kingdom.
Careem Bike in Madinah offers an integrated solution for first and last-mile connectivity, with easy access to public transport and important landmarks. The city has established 70 km of bicycle paths to facilitate this mode of transport.
Saudi Arabia’s sustainable transport strategies are essential to its aim of reducing global carbon emissions by 4 percent, as highlighted at the Global Sustainable Transport Forum in Beijing. Saleh bin Nasser Al-Jasser, Saudi Transport and Logistics Services Minister, emphasized sustainability as a core principle of the Kingdom’s Vision 2030 and National Strategy for Transport and Logistics.
The strategy includes targets such as reducing carbon emissions per capita by 2 percent annually, increasing sustainable mobility, electrifying transport, and integrating these practices across the logistics value chain. It also focuses on developing infrastructure to meet future needs and reduce traffic-related deaths.
As part of the ambitious Saudi Vision 2030 reforms, the government plans to invest $133.3 billion into key infrastructure projects up to 2030. This investment underlines Saudi Arabia’s dedication to environmental stewardship and its commitment to bringing transformative, sustainable projects to life.