FedEx Receives GACA License to Operate as Foreign Air Carrier for Cargo Transport

FedEx has been granted a license by the General Authority of Civil Aviation (GACA) to operate as a foreign air carrier for cargo transport in Saudi Arabia. FedEx is the world leader in express shipping, with a sales breakdown of 46.6% for mail and express shipping services, 39.1% for small package delivery, 10.3% for large package delivery, and 4% for other services. The US accounts for 72.4% of net sales.

FedEx Corporation has been granted a license by the General Authority of Civil Aviation (GACA) to operate as a foreign air carrier for cargo transport in Saudi Arabia. This development underscores the company's strategic expansion into the Middle East, a region with significant growth potential for express shipping services. The license, granted on September 2, 2025, allows FedEx to further enhance its cargo transport capabilities in the Kingdom, aligning with its global vision to provide seamless and efficient logistics solutions.

FedEx's move into Saudi Arabia is part of its broader strategy to diversify its revenue streams and reduce its dependency on the U.S. market. The company's sales breakdown highlights its dominance in express shipping, with 46.6% of its revenue coming from mail and express shipping services, 39.1% from small package delivery, 10.3% from large package delivery, and 4% from other services. Notably, the U.S. accounts for 72.4% of its net sales, indicating a significant reliance on the domestic market [1].

The end of the de minimis exemption for low-value package shipments in the U.S. has also been a significant development affecting global shipping. The U.S. Customs and Border Protection (CBP) began collecting duties on all global parcel imports regardless of value, country of origin, or mode of transportation. This change, which took effect on Friday, August 31, 2025, is expected to raise costs for e-commerce companies, small businesses, and consumers alike. The removal of the exemption has been attributed to efforts to curb the flow of narcotics and other prohibited items into the U.S. [1].

While the U.S. market remains a critical component of FedEx's operations, the company's strategic expansion into Saudi Arabia and other regions highlights its commitment to growth and diversification. The license granted by GACA will enable FedEx to tap into the growing demand for express shipping services in the Middle East, potentially offsetting the impact of increased tariffs and duties in other markets.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3UL017:0-us-low-value-package-tariff-exemption-ends-raising-costs-for-shippers-consumers/