Supply Chain

A new 53,000 sqm warehouse facility is set to rise in Saudi Arabia's Special Integrated Logistics Zone (SILZ) near King Khalid International Airport, with construction beginning in Q1 2026 and completion expected by Q2 2027. This development supports sectors like technology and e-commerce, aligns with Vision 2030, and enhances regional connectivity and workforce development. Additionally, a new logistics hub at Damma…

Investment in New Logistics Hub in Saudi Arabia's Special Integrated Logistics Zone

A new warehouse facility is set to be established in Saudi Arabia's Special Integrated Logistics Zone (SILZ), marking a significant development in the country's logistics and supply chain industry. The facility is designed to bolster various sectors, including technology, retail, automotive, energy, and e-commerce, and is strategically located near King Khalid International Airport.

Warehouse Facility Details and Construction Timeline

The planned warehouse will occupy a substantial land plot of 78,000 square meters, with the warehouse itself covering 53,000 square meters. Construction is scheduled to commence in the first quarter of 2026, with completion projected for the second quarter of 2027. This timeline aligns with the broader objectives of Saudi Arabia's Vision 2030, which aims to diversify the economy and enhance the Kingdom's logistics capabilities.

Strategic Location and Economic Impact

Situated just 8 kilometers from King Khalid International Airport, the new facility is positioned to support efficient inbound and outbound trade, enhancing regional connectivity. This strategic location is expected to facilitate the movement of goods and services, aligning with national goals to improve logistics infrastructure. Furthermore, the development of this facility is anticipated to contribute to local workforce development, creating job opportunities and fostering skills in the logistics sector.

Development of a New Logistics Hub at Dammam Port

In addition to the warehouse in SILZ, a new logistics hub is being established at Dammam Port. This initiative, undertaken by the Saudi Ports Authority, is part of a broader strategy to expand the Kingdom's logistics network. The hub at Dammam Port is expected to play a crucial role in supporting the country's trade activities and enhancing its position as a logistics center in the region.

SAL's Role in Transforming the Logistics Landscape

SAL, a prominent player in Saudi Arabia's logistics and supply chain solutions sector, has launched its Fulfillment Business Unit to meet the growing demands within the industry. This unit offers a range of value-added services, including expertise in cold chain logistics and digital enablement, supported by an advanced Warehouse Management System (WMS) that provides real-time access to operational data and metrics.

SAL is investing in the establishment of a network of fulfillment centers at key locations across Saudi Arabia, including Riyadh, Jeddah port, and Dammam port. These centers are intended to address the accelerated needs of the logistics market, supporting the country's economic transformation efforts.