DHL Supply Chain plans to invest €130 million (¥23.6 billion) in a Riyadh logistics hub, betting on Saudi Arabia’s push to become a regional trade gateway.
Construction of the warehouse is expected to begin next year, Orkun Saruhanoglu, chief executive officer of DHL Supply Chain in the Middle East and Africa, said in an interview. The facility, located in the Special Integrated Logistics Zone next to King Khalid International Airport, will open in 2027, he said.
Saudi Arabia has loosened foreign investment rules to lure multinational corporations beyond the oil sector as part of Crown Prince Mohammed bin Salman’s Vision 2030. The government is emphasizing logistics, aiming to position the kingdom as a trade hub linking Asia, Europe and Africa.
"This is just the first step of our group’s €500 million investment” in the Middle East, Saruhanoglu said in an online interview on Saturday. "Most of our global and regional customers are already in Saudi Arabia.”
The new 78,000-square-meter hub will serve DHL’s customers in technology, e-commerce, automotive and other fast-growing sectors.
DHL, which already partners with Saudi Aramco through its ASMO joint venture, is considering further expansion in the kingdom but has not disclosed details. Saruhanoglu said Saudi Arabia is now the company’s fastest-growing market in the region. The Riyadh hub is expected to support domestic and regional trade and provide space for manufacturing and distribution activities.
Saruhanoglu said the bonded corridor to King Khalid International Airport could cut clearance times, and some global clients are exploring moving more regional distribution to Saudi Arabia.
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