Saudi Arabia continues to invest in its Vision 2030 plan to become a global logistics hub, announcing today that German logistics provider DHL Supply Chain has agreed to develop a $150 million facility in the Kingdom.
DHL said it has signed a 26-year land lease agreement as the anchor tenant in the Special Integrated Logistics Zone (SILZ) in Saudi Arabia, 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 plot of land and include a 570,000 square foot multi-user warehouse that will cater to sectors including technology, retail, consumer, automotive, energy and e-commerce. Construction is scheduled to begin in the first quarter of 2026, and is expected to be completed by the second quarter of 2027.
The new warehouse is part of a $575 million investment recently announced by DHL Group for the Middle East region through 2030. “The Middle East is one of the fastest growing logistics regions globally, and Saudi Arabia is at the center of this transformation,” Hendrik Venter, CEO of Supply Chain at DHL, said in a statement. “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 multi-user facility at SILZ will not only accelerate supply chain resilience and connectivity, but will also enable global companies to migrate their distribution centers to the Kingdom, making them thrive in a market that has become a true gateway between Asia, Europe and Africa.”
DHL’s move follows investments in Saudi Arabia by other logistics players including CMA CGM, which in 2024 agreed to develop port infrastructure in the Red Sea, logistics services, and multimodal platforms to enhance the Middle Eastern country’s inland logistics capabilities.
