04 December, 2024: CMA CGM, a global shipping and logistics company, is taking a bold step to strengthen its foothold in the Red Sea region. The company has signed a Memorandum of Understanding (MoU) with the Kingdom of Saudi Arabia, aiming to enhance port and logistics infrastructure in the region. This agreement was inked during French President Emmanuel Macron's state visit to the kingdom, marking a significant milestone for both parties.

Rodolphe Saadé, Chairman and CEO of CMA CGM Group, officially signed the MoU, though specific project details under the agreement remain limited. In discussing the ambitious collaboration, Saadé highlighted that the partnership would focus on developing port infrastructure in the Red Sea region, along with expanding logistics and multimodal services. The goal is to enhance Saudi Arabia's inland logistics capabilities, offering significant support to the country's expanding infrastructure.

CMA CGM outlined that its presence in Saudi Arabia will encompass "maritime, air, and inland transportation," further positioning the company as a major player in the kingdom's supply chain development. The company's enhanced involvement aligns with Saudi Arabia’s broader economic goals under Vision 2030, a long-term plan designed to diversify the nation’s economy and reduce its dependency on oil.

Saudi Vision 2030, launched in 2016, aims to transform the country’s economy by focusing on diversification, social development, and cultural enrichment. The vision is unfolding in three distinct phases, with the first phase focusing on structural reforms in the public sector, economy, and society. The current phase, which places a stronger emphasis on strategic investments and ambitious projects, has paved the way for CMA CGM’s enhanced involvement. The final phase will seek to sustain the impact of these transformations and unlock new growth opportunities.

CMA CGM boasts an extensive history in Saudi Arabia, having carried out operations in the kingdom since as early as 1984. The company currently runs 11 weekly services connecting major Saudi ports, Jeddah, Dammam, and Jubail, with global markets. The new partnership will likely expand this network and further integrate the company into the kingdom’s evolving logistics and trade landscape.

With the signing of this MoU, CMA CGM is positioning itself at the heart of Saudi Arabia’s ambitious economic transformation, reinforcing its role as a critical player in the country’s logistics and supply chain sectors.