FedEx Diversifies into Saudi Arabia's Logistics Market with New Regional Office and Air Carrier License

FedEx has opened a regional office in Riyadh and secured a license to operate as a foreign air carrier, breaking away from local partnerships. The move positions FedEx to benefit from Saudi Arabia's economic transformation and build a more resilient supply chain in the region. FedEx is also working with Middle Eastern exporters to avoid surprise costs due to the US tightening of tariff exemptions.

FedEx Corporation has taken a significant step in its global expansion by opening a regional office in Riyadh and securing a license to operate as a foreign air carrier. This move marks a strategic shift for the company, positioning it to benefit from Saudi Arabia's economic transformation and build a more resilient supply chain in the region. The new office, which was inaugurated on September 2, 2025, will oversee FedEx operations in Saudi Arabia, Bahrain, and Kuwait [3].

The General Authority of Civil Aviation (GACA) granted FedEx the license to operate as a foreign air carrier for cargo transport, effective September 2, 2025 [2]. This license allows FedEx to begin operating direct flights to and from Riyadh, enhancing its connectivity and trade capabilities. The inaugural flight is scheduled to arrive at King Khalid International Airport on Tuesday, with operations set to commence at a frequency of six flights per week [3].

FedEx's expansion in Saudi Arabia is part of its broader strategy to enhance connectivity and trade in the region. The company's new regional hub at the upcoming King Salman International Airport will serve Saudi Arabia, Bahrain, Kuwait, and Qatar, further bolstering its presence and capabilities [1]. FedEx has also introduced its FedEx Logistics division in the Kingdom to provide freight forwarding solutions, reflecting its commitment to diversifying its services and supporting the growth of local businesses [1].

The move to operate as a foreign air carrier allows FedEx to avoid potential disruptions and costs associated with local partnerships. This is particularly relevant given the recent tightening of US tariff exemptions, which could lead to unexpected costs for Middle Eastern exporters. By establishing a direct air connection, FedEx aims to provide a more reliable and cost-effective solution for its customers [2].

Saudi Arabia's air cargo sector is experiencing rapid growth, with volumes reaching 0.92 million tons in 2024 and projected to nearly triple to 2.45 million tons by 2033 [1]. This strong demand for reliable logistics solutions underscores the potential for FedEx's expansion in the Kingdom. The company's dedicated B777 freighter service, which connects the Americas and Europe to Riyadh and onward to Guangzhou and Shanghai, supports the specialized needs of high-growth and regulated industries such as energy, manufacturing, mining, healthcare, and automotive [1].

To further enhance customer experience, FedEx's physical network is supported by digital solutions that improve visibility, efficiency, and control across the supply chain. The company offers a suite of end-to-end digital tools for automated and simplified customs clearance, helping businesses navigate complex cross-border requirements with greater ease [1].

In conclusion, FedEx's strategic expansion in Saudi Arabia reflects its commitment to enhancing connectivity and trade in the region. By opening a regional office and securing a license to operate as a foreign air carrier, FedEx is well-positioned to capitalize on Saudi Arabia's economic transformation and provide reliable, cost-effective logistics solutions to its customers.

References:
[1] https://newsroom.fedex.com/newsroom/meisa-english/fedex-launches-first-nonstop-flight-from-the-west-to-saudi-arabia
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_FWN3UP0DY:0-gaca-grants-fedex-license-to-operate-as-foreign-air-carrier-for-cargo-transport/
[3] https://english.aawsat.com/business/5181617-minister-transport-inaugurates-fedex-global-head-office-saudi-arabia