Riyadh – Mubasher: DHL Supply Chain plans to invest EUR 130 million (SAR 561.50 million) to establish a new regional logistics and distribution hub at the Special Integrated Logistics Zone (SILZ) in Riyadh.
The World’s leading contract logistics provider signed a land lease agreement with SILZ for the project, driving the Kingdom's ambition to become a global logistics hub, according to a press release.
The new facility will occupy a 78,000 square meter land plot, featuring 53,000 square meters, including leasehold commitments for a 26-year term.
Meanwhile, the construction phase is scheduled to begin in the first quarter (Q1) of 2026, with completion expected by Q2-27.
The new warehouse is part of the EUR 500 million investment DHL Group has recently announced for the Middle East through 2030.
Hendrik Venter, CEO of DHL Supply Chain, highlighted: "Our new multiuser-facility at SILZ will not only accelerate supply chain resilience and connectivity but also enable global businesses to migrate their distribution centers to the Kingdom, positioning them to thrive in a market that is becoming a true gateway between Asia, Europe, and Africa.”
On his part, Fadi Al Buhairan, CEO of the Special Integrated Logistics Zone Company, stated: " This is a milestone deal as 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.”
Mostapha Mokdad, DHL Supply Chain KSA’s Managing Director, commented: “DHL Supply Chain has prioritized the National strategy of establishing Saudi Arabia as a global logistics hub, 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 along with the wider Middle East and Africa region, through KSA”
