Company signs land lease agreement to build a major regional logistics and distribution hub
DHL Supply Chain will invest €130mn to establish a new regional logistics and distribution hub at Saudi Arabia’s Special Integrated Logistics Zone (SILZ) in Riyadh.
For this strategic project, the World’s leading contract logistics provider has signed a land lease agreement with SILZ, reinforcing its commitment to Saudi Arabia’s Vision 2030 and the Kingdoms ambition to become a global logistics hub. This new facility forms part of DHL’s broader investment in the Kingdom of Saudi Arabia.
The new facility will occupy a 78,000sqm land plot, featuring 53,000sqm, including leasehold commitments for a 26-year term: This multi-user warehouse will cater to diverse sectors including technology, retail and consumer, automotive, energy, and e-commerce, providing tailored solutions for each industry.
Construction schedule
Construction is scheduled to begin in the first quarter of 2026, with completion expected by the second quarter of 2027. The new warehouse is part of the €500mn investment DHL Group has recently announced for the Middle East through 2030.
“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,” stated Hendrik Venter, CEO DHL Supply Chain.
“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,” Dr. Fadi Al-Buhairan, Chief Executive Officer, Special Integrated Logistics Zone Company.
Strategic location
Strategically located just eight kilometers from King Khalid International Airport and connected via a bonded corridor, the new hub will offer unparalleled proximity to global air routes. This will ensure faster lead times and seamless access to and from the Middle East’s largest consumer market – supporting efficient inbound flows into the Kingdom and enabling the growing outbound export trade.
“Our lighthouse site at SILZ is a testimony of supporting our global customers to actively serve Saudi Arabia as the largest market in the region along with the wider Middle East and Africa region, through the Kingdom,” stressed Mostapha Mokdad, DHL Supply Chain KSA’s Managing Director.
