FedEx Corp. has launched a regional office in Riyadh and secured a Saudi economic license to operate as a foreign air carrier, deepening its bet on the kingdom as a rising logistics power in the Middle East.

The site will oversee business across the kingdom, Bahrain and Kuwait, company representatives said at an event in Saudi Arabia. 

Operations are expected to include 24 monthly cargo flights through King Khalid International Airport in Riyadh, establishing the capital as a central node linking Europe, Asia and the Americas.

The move marks FedEx’s transition to an independent operator in Saudi Arabia after the carrier had in previous years partnered with local outlets. Regional president Kami Viswanathan declined to give financial detail ahead of earnings later in September, but said FedEx plans to expand further in the kingdom beyond major urban centers due to high demand. 

The expansion coincides with Saudi Arabia’s push to draw in multinational firms and challenge the UAE as the industrial and logistics center of the Gulf. The government is investing to develop ports, rail and roads, with a goal of increasing the transport sector’s contribution to GDP to 10% by 2030 from 6% in 2021.

Viswanathan also addressed U.S. tariff shifts that have disrupted global shipping. Following Washington’s decision to end the so-called de minimis exemption, FedEx is working with Middle East exporters to manage compliance and cost impact, she said.

“There will be duties payable on shipments that were earlier exempt. Our role is to ensure smooth flow despite these changes,” Viswanathan said in an interview in Riyadh.