Contract logistics provider, DHL Supply Chain, is investing SAR560 million (£114m) to establish a new regional logistics and distribution hub in Saudi Arabia.
The company has signed a 26-year lease for a new 53,000m2 (c. 570,000ft2) warehouse in Saudi Arabia’s Special Integrated Logistics Zone in Riyadh.
DHL’s multi-user warehouse, located on a 78,000m2 (c. 840,000ft2) site, will serve the technology, retail and consumer, automotive, energy and e-commerce sectors.
Scheduled to begin construction in the first quarter of 2026, the warehouse is expected to be completed by the second quarter of 2027.
The hub is part of DHL Group’s wider €500 million (c. £423 million) investment in Middle East operations.
“The Middle East is one of the fastest-growing logistics regions globally, and Saudi Arabia sits at the centre of this transformation,” said Hendrik Venter, CEO DHL Supply Chain.
“Our new multiuser-facility at SILZ will not only accelerate supply chain resilience and connectivity but also enable global businesses to migrate their distribution centres to the Kingdom, positioning them to thrive in a market that is becoming a true gateway between Asia, Europe, and Africa.”
The new warehouse is connected to King Khalid International Airport by an 8km bonded corridor, supporting faster and more efficient trade flows into Saudi Arabia.
CEO of the Special Integrated Logistics Zone Company, Dr Fadi Al-Buhairan, described the partnership with DHL as a milestone deal.
“DHL will be our anchor tenant in logistics, making this facility their regional hub. The entry of a partner the size of DHL into the Riyadh Integrated ecosystem reflects confidence in our stimulating regulatory environment.”
Both DHL and SILZ will continue to collaborate closely through the construction and development phases.
