DHL Invests €130M in Boosting Saudi Logistics with New Hub: A Strategic Leap towards Vision 2030
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DHL Supply Chain, the world’s leading contract logistics provider, has announced an investment of approximately €130 million (560 million SAR) towards the establishment of a regional logistics and distribution hub in Riyadh, located in Saudi Arabia’s Special Integrated Logistics Zone (SILZ). This strategic investment reaffirms the company’s commitment to the Kingdom’s Vision 2030 and its goal of becoming a global logistics powerhouse. This facility is part of DHL’s larger investment strategy in Saudi Arabia.
Features of the New Facility
The new distribution hub will be built on a 78,000 sqm land plot, with a 53,000 sqm facility, under a lease agreement for a 26-year term. This multi-user warehouse will service various sectors, such as technology, retail and consumer, automotive, energy, and e-commerce, offering customised solutions for each industry. Construction is set to commence in the first quarter of 2026, with completion projected for the second quarter of 2027. This new warehouse is a component of the €500 million investment announced by DHL Group for the Middle East extending to 2030.
Hendrik Venter, CEO of DHL Supply Chain, commented on the growth potential of the region, saying, “The Middle East is one of the fastest-growing logistics regions globally, and Saudi Arabia sits at the centre of this transformation… 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…”
Strategic Location and Benefits
Situated just eight kilometres from King Khalid International Airport and connected via a bonded corridor, the new hub will offer unrivalled proximity to global air routes. This advantageous location will ensure faster lead times and seamless access to and from the Middle East’s largest consumer market—facilitating efficient inbound flows into the Kingdom and supporting the burgeoning outbound export trade.
Mostapha Mokdad, DHL Supply Chain KSA’s Managing Director, stressed the alignment of this initiative with the Kingdom’s Vision 2030, saying, “…our lighthouse site at SILZ is a testimony of supporting our global customers to actively serve the Kingdom of Saudi Arabia as the largest market in the region…”
Significant Milestone and Future Opportunities
The agreement represents a significant step in DHL Supply Chain’s long-term expansion strategy in the Kingdom and mirrors the strong alignment between the company’s growth ambitions and Saudi Arabia’s Vision 2030 objectives. The new facility is anticipated to generate new employment opportunities, contributing to local workforce development in line with Vision 2030.
The collaboration between the two parties will continue through the construction and development phases. Operations at the new hub are expected to enhance regional connectivity and unlock significant long-term economic value.
Questions & Answers
When is the construction of the new DHL facility expected to begin?
Construction is scheduled to start in the first quarter of 2026.
What is the primary purpose of the new DHL facility in SILZ?
The facility will serve as a regional logistics and distribution hub catering to various sectors, including technology, retail, automotive, energy, and e-commerce.
How will the new DHL facility contribute to Saudi Arabia’s Vision 2030?
The facility aligns with the Vision 2030 objectives by creating new employment opportunities and aiding in the development of the local workforce. It also supports the Kingdom’s ambition to become a global logistics hub.