Saudi Arabia is continuing to invest in its “Vision 2030” plan to become a global logistics hub, announcing today that the German logistics service provider DHL Supply Chain has agreed to develop a $150 million in a facility in the kingdom.
DHL said it has signed a 26-year land lease agreement as the anchor tenant in Saudi Arabia’s Special Integrated Logistics Zone (SILZ), and will use the funding to establish a new regional logistics and distribution hub there.
The new facility will occupy an 840,000 square foot land plot, featuring a 570,000 square foot multi-user warehouse that will cater to sectors including technology, retail and consumer, automotive, energy, and e-commerce. Construction is scheduled to begin in the first quarter of 2026, with completion expected by the second quarter of 2027.
The new warehouse is part of the $575 million investment DHL Group has recently announced for the Middle East through 2030. “The Middle East is one of the fastest-growing logistics regions globally, and Saudi Arabia sits at the center of this transformation,” Hendrik Venter, CEO DHL Supply Chain, said in a release. “Our approach is to invest ahead of demand, creating scalable infrastructure that supports high-growth sectors such as technology, e-commerce, and new energy. Our new multiuser-facility at SILZ will not only accelerate supply chain resilience and connectivity but also enable global businesses to migrate their distribution centers to the Kingdom, positioning them to thrive in a market that is becoming a true gateway between Asia, Europe, and Africa.”
DHL’s move follows investments in Saudi Arabia by other logistics players including CMA CGM, which agreed in 2024 to develop port infrastructure in the Red Sea, logistics services, and multimodal platforms to enhance the middle eastern nation’s inland logistics capabilities.
