€130 Million Investment Establishes Anchor Logistics Hub Supporting Saudi Vision 2030
DHL Supply Chain has signed a landmark land lease agreement to establish a new regional logistics and distribution hub in Saudi Arabia’s Special Integrated Logistics Zone (SILZ). This €130 million (561.5 million SAR) project positions DHL as the zone’s anchor logistics tenant and marks a significant step in the Kingdom’s ambition to become a global logistics powerhouse.
The new facility will occupy a 78,000 square meter plot and feature 53,000 square meters of advanced multi-user warehouse space. It is designed to serve high-growth sectors, including technology, retail, consumer goods, automotive, energy, and e-commerce. Construction is slated to begin in Q1 2026, with completion expected by Q2 2027.
A Strategic Gateway for Global Trade
Located just eight kilometers from King Khalid International Airport, the hub will be connected via a bonded corridor, allowing for seamless, high-speed movement of goods between the airport and the warehouse. This strategic positioning will reduce lead times for imports and exports, making Riyadh a vital gateway connecting Asia, Europe, and Africa.
Hendrik Venter, CEO of DHL Supply Chain, stated that the Middle East is one of the world’s fastest-growing logistics regions. He emphasized that the new facility will not only boost supply chain resilience but also enable global businesses to migrate their distribution centers to the Kingdom, allowing them to thrive in a rapidly diversifying market.
Part of a Global €500 Million Investment Plan
The Riyadh hub is a key component of the €500 million investment that DHL Group recently announced for the Middle East through 2030. This broader strategy focuses on scaling infrastructure and introducing sustainable technologies across Saudi Arabia and the United Arab Emirates.
Dr. Fadi Al-Buhairan, CEO of the Special Integrated Logistics Zone Company, called the deal a milestone for the Riyadh Integrated ecosystem. He noted that the entry of a global leader like DHL reflects deep international confidence in the Kingdom’s stimulating regulatory environment, which offers incentives such as:
- 0% Corporate Income Tax for up to 50 years.
- VAT exemptions for goods under customs suspension.
- 100% foreign business ownership.
Mostapha Mokdad, Managing Director of DHL Supply Chain KSA, added that the “lighthouse site” at SILZ directly supports Saudi Vision 2030 by creating skilled jobs and providing the infrastructure necessary for global customers to serve the wider Middle East and Africa region through the Kingdom.
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