الإصدار 6 - العدد 16 (2026-07-02)

The Impact of Green Logistics Practices on the Environmental Performance of Industrial Firms in Saudi Arabia

Dr: Raed Abu Alkhair

Washington Center: Washington- District of Columbia- US

This paper assesses the influence of green logistics practices on environmental performance in Saudi Arabian industrial companies. The study integrates green logistics into the Circular Carbon Economy (CCE) paradigm, linking the green industrial supply chain of Saudi Arabia to the goals of Vision 2030 and the National Industrial Development and Logistics Program (NIDLP).

A systematic literature meta-synthesis was used for this qualitative study. The research collected primary data from recent empirical studies, and variables influencing environmental performance were identified for each of the industrial sub-sectors considered. The variables included were structural equation modeling and various multi-criteria decision-making methodologies (such as Fuzzy AHP). These factors were considered to identify the barriers preventing widespread application.

The study findings revealed that although industrial companies were taking steps toward eco-design, green purchasing, and reverse logistics in supply chains, environmental performance was not adequately measured and quantified across the sectors. This study showed that the industrial subsectors were failing to improve environmental performance by at least 80%, with severe delays being caused by capital investment cost, technological obstacles, such as emission monitoring and measurement, and policy uncertainty. These gaps were found to vary by subsector, such as the petrochemical industry, FMCG manufacturing, construction industry, and high-tech manufacturing industry.

To translate green logistics intentions into environmental performance improvements, there is a critical need for the mandatory development of environmental performance measurement indices, such as those provided by Life Cycle Assessment (LCA). The study results offer a strategic multi-level intervention model for governments and industries to improve corporate supply chain management policies. By doing so, the industry may meet the Kingdom’s 2030 national decarbonization and green logistics targets, thus contributing to sustainable development in emerging economies.