Amazon Announces Support for Saudi Arabia's Logistics Startups

Amazon Announces Support for Saudi Arabia's Logistics Startups

The Delivery Service Partner program was announced during a ceremony held at Monsha’at’s headquarters in Riyadh

Amazon has announced the launch of the latest iteration of its global Delivery Service Partner (DSP) program that empowers local entrepreneurs to set up and manage their own logistics businesses delivering Amazon packages.

Saudi Arabia is the first country in the region to host the flagship program, which will be expanded to cover the MENA region at a later stage.

Launched in collaboration with Monsha’at — the General Authority for SMEs — it aims to establish more than 30 new local startups and create hundreds of job opportunities within the local logistics sector during the program’s first three years, a report published on Arab News stated.

The Delivery Service Partner program was announced during a ceremony held at Monsha’at’s headquarters in Riyadh and attended by the authority’s Governor Saleh Al-Rasheed and Ronaldo Mouchawar, vice president of Amazon MENA.

Amazon has teamed up with Monsha’at for the launch as part of an ongoing partnership designed to empower communities by creating jobs and opening new career paths for Saudi nationals.

Saudi entrepreneurs who join the DSP program can take advantage of various benefits, including a specific delivery volume from Amazon, access to the company’s sophisticated delivery technology, hands-on training, and discounts on a suite of assets and services, the Arab News report read.

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Last March, Amazon signed an MoU with Monsha’at to empower local seller SMEs. Amazon’s new initiative to nurture logistics startups further aligns with Monsha’at’s vision to incentivize and invest in SMEs.

As the program grows, it will create hundreds of jobs in the logistics sector across the country, supporting Saudi Arabia’s burgeoning e-commerce sector and upskilling local talent with future-ready skills.

The company’s collaboration with Monsha’at also aligns with the national goal of developing a robust public-private partnership ecosystem and demonstrates how public-private partnerships can pave the way for businesses and entrepreneurs to succeed and thrive.

Speaking about Amazon’s new initiative, Al-Rasheed said: “Small and medium enterprises are a key contributor to the national economy and the Kingdom’s Vision 2030 diversification goals.

"We at Monsha’at are keen to support and enable this vital sector through several programs, agreements, and public-private sector partnerships.

"This initiative from Amazon clearly reflects this spirit of cooperation and represents a key outcome of the agreements signed during the Global Entrepreneurship Congress, which was organized by Monsha’at in cooperation with the Global Entrepreneurship Network.

Mouchawar said: “Saudi Arabia has always had a culture of entrepreneurship, and its small business owners inspire us with their vision, grit, and ingenuity as they set new benchmarks in customer-centric thinking every day."

"Through this initiative, we aim to empower enterprising innovators, enable startups and emerging brands across the Kingdom to realize their full potential, and contribute to Saudi Arabia’s strong, fast-growing digital economy.”

Amazon will take an active role in its partnership with each entrepreneur, helping to minimize startup costs by securing the most favorable terms for resources needed to operate a delivery business.

As a key global player with more than 20 years of operational and technological experience, the DSP 2.0 program allows Amazon to support the growing appetite for entrepreneurship in Saudi Arabia.

The first entrepreneur to join the Delivery Service Partner program, Sahal Shuaib, said: “With e-commerce on the rise over the past few years, I had been dreaming about getting into the logistics industry for some time, but did not have the experience or the knowhow.

"When Amazon launched the Delivery Service Partner program, I realized that my dream became a reality, as the program provided me access to Amazon’s global logistics experience and technology. This is an excellent opportunity to learn while I earn and grow my own business.

Read More: Amazon Announces Five New Delivery Stations Across Saudi Arabia

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Transport and Logistics ME