Saudi Arabia ‘not far’ from approving drone cargo deliveries: transport minister

He added, on the sidelines of the inauguration of a UPS shipping operations center at the cargo village of King Khalid International Airport in Riyadh, that allowing the use of drones to transport goods will not be far off. Al-EQTISADIAH
Short Url
Updated 05 February 2026
Follow

Saudi Arabia ‘not far’ from approving drone cargo deliveries: transport minister

RIYADH: Saudi Transport Minister Saleh Al-Jasser told Al-Eqtisadiah that the Kingdom is working to open new logistics centers at airports and ports, invest in infrastructure, and attract major global companies in the transport and services sector during 2026. 

He added, on the sidelines of the inauguration of a UPS shipping operations center at the cargo village of King Khalid International Airport in Riyadh, that allowing the use of drones to transport goods will not be far off, as trials on this matter are currently being conducted. 

He explained that drones are a fundamental part of work in the logistics sector and are employed in various forms, including road inspections and many complementary tasks. 

Regarding rail connectivity between the Gulf countries, the transport minister said: “Intensive work is underway on investments in infrastructure within Saudi Arabia to connect with the Gulf states.” 

The minister indicated that the Saudi air cargo sector recorded significant growth last year of 34 percent, reaching 1.2 million tonnes, which supports the import and export sector and enhances economic diversification. 

For his part, Daniel Carrera, president of UPS for Europe, the Middle East, and Africa, said: “UPS has always provided, through ongoing work and cooperation with Eirad, an unparalleled service across the global smart logistics network.” 

Eirad, the agent of UPS in Saudi Arabia, operates the operations center, which extends over an area of 10,000 sq. meters within the new cargo village at King Khalid International Airport. 

The facility was designed to facilitate shipment handling operations, customs clearance of goods, and parcels. 

The new technologies enable the processing of more than 3,000 parcels per hour, with the possibility of further expansion this year. 

The facility is expected to contribute to meeting the growing demand within Saudi Arabia for air and ground shipping, improving transit times, and enhancing shipment tracking and customs clearance capabilities. 

The company says it has invested extensively in Saudi Arabia by providing 150,000 sq. meters of warehouses, 25 facilities, and a local delivery network serving more than 200 cities, all of which are connected to the global UPS network that serves more than 200 countries. 


Oil surges; Brent back at $100 as Iran steps up attacks on Gulf shipping

Updated 8 sec ago
Follow

Oil surges; Brent back at $100 as Iran steps up attacks on Gulf shipping

BEIJING/SINGAPORE: Oil prices jumped on Thursday as Iran stepped up attacks on oil and transport facilities across the Middle East, raising fears of a prolonged conflict and oil-flow disruptions through the Strait of Hormuz.

Brent futures rose $8.54, or 9.28 percent, to $100.52 a barrel at 06:54 a.m. Saudi time, while US West Texas Intermediate crude was up $7.22, or 8.28 percent, to $94.47.

Brent hit $119.50 a barrel on Monday, its highest since mid-2022, then dropped after US President Donald Trump said the Iran war could be over soon.

On Wednesday, a spokesperson for Iran’s military command said: “Get ready for oil to be $200 a barrel, because the oil price depends on regional security, which you have destabilised,” in remarks directed at the US.

There are no signs of a de-escalation in the Gulf and as a result, there is no end in sight to the disruptions to oil flows through the Strait of Hormuz, ING analysts said on Thursday.

“The only way to see oil prices trade lower on a sustained basis is by getting oil flowing through the Strait of Hormuz,” ING said. “Failing to do so means that the market highs are still ahead of us.”

Two foreign tankers carrying Iraqi fuel oil were hit by unidentified attackers in Iraq’s territorial waters, causing them to catch fire, the director general of the General Co. for Ports, Farhan al-Fartousi, told Reuters on Wednesday.

An initial investigation from Iraqi security officials showed explosive-laden boats from Iran had hit the two tankers.

The International Energy Agency has agreed to release a record 400 million barrels of oil to help rein in prices that have spiked after the US-Israeli war on Iran broke out. The US is contributing the bulk of that release — 172 million barrels — from its Strategic Petroleum Reserve.

“The IEA’s release of oil reserves may be only a temporary solution, as disruptions to oil shipments through the Strait of Hormuz and a major production halt in some Middle Eastern countries could cause a long-term supply crunch,” said Tina Teng, a market strategist at Moomoo ANZ.

The ING analysts said there are concerns about how quickly the oil can make it to the market and whether it will be sufficient to tide consumers over until oil begins flowing through the Strait of Hormuz again.