DHL Supply Chain has declared an investment of US$149.89 million (equivalent to SAR561.5 million) aimed at constructing a substantial logistics and distribution center within Saudi Arabia’s Special Integrated Logistics Zone (SILZ) located in Riyadh.
This initiative comes after a land lease agreement made with SILZ and highlights DHL’s dedication to supporting the aspirations of Vision 2030 for the Kingdom, aiming to emerge as a prominent global logistics hub. The site, covering 78,000 square meters, will feature 53,000 square meters of state of the art multi-user warehouse space intended to cater to industries like technology, retail, consumer products, automotive, energy, and e-commerce. Groundbreaking is scheduled for the first quarter of 2026, with an anticipated completion by mid-2027. This facility is part of DHL Group’s €500 million investment strategy for the Middle East until 2030. “The Middle East ranks among the swiftest-growing logistics markets in the world, and Saudi Arabia is pivotal to this evolution,” stated Hendrik Venter, CEO of DHL Supply Chain. “Our strategy focuses on proactive investments, establishing adaptable infrastructure that bolsters high-growth industries such as technology, e-commerce, and renewable energy.
“Our newly planned multi-user center at SILZ will enhance supply chain adaptability and connectivity, allowing international companies to relocate their distribution operations to the Kingdom.” Dr. Fadi Al-Buhairan, CEO of the Special Integrated Logistics Zone Company, indicated: “Our objective has consistently been to develop the next generation of intelligent logistics infrastructure. Our collaboration with DHL merges SILZ’s superior amenities with DHL’s worldwide network. Securing DHL as our primary logistics partner signifies a significant achievement and demonstrates robust confidence in our regulatory framework.” Situated a mere eight kilometers from King Khalid International Airport and connected via a bonded corridor, the facility will grant immediate access to international air routes, consequently minimizing lead times and enhancing import and export flow.
Mostapha Mokdad, Managing Director of DHL Supply Chain KSA, remarked: “In alignment with the Kingdom’s Vision 2030, DHL Supply Chain has focused on positioning Saudi Arabia as an international logistics center. Our facility at SILZ aids our global clientele in catering to the Kingdom and the broader Middle East and Africa region.”