How to Start a Logistics and Last Mile Delivery Business in KSA

Introduction

Saudi Arabia is rapidly transforming into a logistics powerhouse as part of its Vision 2030 strategy, positioning itself as a global logistics hub. With rising e-commerce penetration, increased infrastructure investment, and government initiatives to privatize and digitalize logistics networks, the demand for last mile delivery and logistics services in KSA has surged.

How to Start a Logistics and Last Mile Delivery Business in KSA

Whether you’re a startup aiming to launch a fleet-based delivery service or a tech-driven logistics aggregator, now is the right time to tap into Saudi Arabia’s expanding delivery ecosystem. However, launching a logistics business in KSA comes with its own set of regulatory, operational, and financial complexities. That’s where Aviaan steps in — offering expert support in company formation, compliance, feasibility, accounting, and funding to build a legally sound and scalable operation.

Why KSA is Ideal for Logistics & Last Mile Delivery

Saudi Arabia’s strategic location between Asia, Africa, and Europe makes it a global trade corridor. With Vision 2030, the government has earmarked over SAR 500 billion for transportation and logistics development — expanding airports, rail, roads, and smart warehousing capabilities.

Last mile delivery, especially in urban and semi-urban regions, has seen unprecedented demand due to:

A surge in online shopping post-COVID
Rapid growth in Q-commerce and food delivery
The rise of local and international e-commerce platforms
A young, tech-savvy population with high mobile usage
Government support for supply chain digitization and private sector partnerships

This environment presents a powerful opportunity for businesses that can efficiently connect sellers to buyers through agile and tech-backed logistics solutions.

Business Setup & Regulatory Requirements in KSA

To start a logistics or delivery business in Saudi Arabia, you’ll need to go through several steps under Saudi Arabian General Investment Authority (SAGIA) (now part of MISA), the Ministry of Commerce, and transport authorities like TGA (Transport General Authority).

Common business activities include:

Freight and Cargo Transportation
Domestic Courier Services
Warehousing and Inventory Management
E-commerce Logistics & Aggregation
Last Mile Delivery Operations
Logistics Tech Platform Development

Key setup elements include:

Commercial Registration (CR) from the Ministry of Commerce
Approval from the Transport General Authority (TGA)
Municipality permits for warehousing and fleet stations
VAT registration with ZATCA (if turnover exceeds SAR 375,000)
Saudi domain registration and logistics license if operating tech-based services

You will also need to hire Saudi nationals to comply with Nitaqat Saudization rules, use government-compliant e-invoicing systems, and set up local bank accounts for operations.

How Aviaan Can Help Launch Your Logistics & Delivery Business in KSA

Aviaan plays a central role in helping entrepreneurs and logistics businesses navigate the regulatory, operational, and financial requirements of launching in Saudi Arabia. Our team ensures your venture is legally compliant, financially sustainable, and investor-ready — all from day one.

Company Formation & Licensing

Aviaan assists with full company incorporation under MISA (formerly SAGIA), helping you secure your foreign investment license, Commercial Registration, and approvals from:

Transport General Authority (TGA)
Municipal and Zoning Authorities for physical infrastructure
Ministry of Commerce for general business activity codes
ZATCA for VAT setup

We help identify whether your business should be registered as a logistics operator, delivery tech provider, or e-commerce aggregator — ensuring you’re properly aligned with industry-specific regulations.

We also advise on Saudization planning by helping you create a compliant hiring strategy that meets workforce quotas without inflating early-stage costs.

Feasibility Study & Business Model Planning

Before investing, Aviaan offers a comprehensive feasibility study tailored to your delivery and logistics model. This includes:

Route optimization strategy for urban and suburban areas
Demand analysis by region and delivery segment (e.g., retail, grocery, pharma)
Vehicle fleet planning: purchase, leasing, and operating cost comparisons
Last mile cost-per-km modeling and technology integration
Competitive analysis of logistics players and delivery aggregators
Break-even analysis and operating margin forecasts

We help you assess whether your logistics idea should be asset-light or fleet-heavy, B2B-focused or D2C, and how to build partnerships with e-commerce retailers, restaurants, and SME networks.

Accounting, VAT, and ZATCA Compliance

Aviaan offers full support with accounting, bookkeeping, and VAT compliance in line with Saudi Arabia’s ZATCA regulations. Our team manages:

Monthly and quarterly VAT filings
Integration of compliant e-invoicing systems
Tax registration for logistics/delivery revenue streams
Cost center tracking for fuel, fleet, warehouse, and operations
Payroll management for drivers and staff
Compliance with WPS (Wage Protection System)

Our cloud-based accounting systems give real-time visibility into your last mile delivery costs, fleet ROI, and daily cash flows — empowering you to make strategic decisions from day one.

Business Plan Development

Aviaan helps you develop a comprehensive logistics business plan required for both licensing and investment purposes. This includes:

Legal and licensing roadmap
Infrastructure and fleet acquisition plan
Operating cost structure and pricing models
Revenue forecasting for delivery volumes
Route mapping and optimization strategy
Expansion roadmap to new Saudi cities or cross-border operations
KPIs for delivery success, customer retention, and driver efficiency

This plan is aligned with your regulatory setup and helps secure warehouse approvals, land usage permits, and vehicle registration from the relevant authorities.

Fundraising & Investor Support

Saudi Arabia has a fast-growing network of VCs, logistics-focused investors, and government-backed funds. Aviaan positions your startup to attract serious capital by offering:

Investor-ready pitch deck creation
Growth-based financial modeling
Valuation benchmarking
ROI-based fleet expansion models
Cost-benefit analysis of in-house vs. third-party logistics
Introductions to angel networks, logistics accelerators, and KSA-based VCs

We also help with term sheet evaluation, financial due diligence support, and investor compliance documentation, making your business credible from the first conversation with potential backers.

Strategic Launch Support

Launching in the logistics space in KSA involves several moving parts — Aviaan stays with you beyond setup to manage:

Staff visa processing and Saudization documentation
Property leasing and municipality compliance for warehouse locations
Procurement of GPS-enabled delivery vehicles
CRM and logistics tech integration (routing, fleet tracking, customer notification)
Staff training documentation and operational SOPs
License renewal and ongoing tax reporting

We also help you prepare for expansion into Riyadh, Jeddah, Dammam, or cross-border delivery into the GCC — all mapped into your operational strategy.

Conclusion

Starting a logistics and last mile delivery business in Saudi Arabia offers immense potential. With rapid infrastructure development, digital adoption, and government support, the demand for reliable, tech-integrated delivery services is stronger than ever.

But the path to success in KSA’s logistics sector goes beyond just buying trucks or launching an app — it involves detailed licensing, tax planning, infrastructure development, hiring strategies, and investor alignment.

With Aviaan as your partner, you gain not only a setup consultant but a strategic advisor across licensing, compliance, finance, and growth — helping you build a delivery business that’s optimized, future-ready, and built to scale across the Kingdom.