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Kuwaiti logistics giant Agility has kicked off plans for the SAR 250 mn (c. USD 66.5 mn) expansion project at the Agility Logistics Parks (ALP) warehousing complex in Riyadh, according to a press release. The first phase of the expansion project is slated to be operational by 1Q 2025.
What we know: The expansion will add 100k sqm of class A warehousing to the ALP, expanding the entire project’s size to a little over 551k sqm, the statement notes.
More on the Riyadh Logistics Park: ALP Riyadh offers storage, distribution, processing, and fulfillment operations to Saudis leading consumer, industrial, and e-commerce industries, the statement notes. A warehouse at the Riyadh park became the first building in the Kingdom and the first warehouse in the GCC to receive EDGE Advanced certification.
There’s more in the pipeline: ALP already operates a 200k sqm facility in Dammam. The company is also investing over SAR 611 mn (c. USD 163 mn) to develop a third ALP complex near Jeddah. The project — announced back in 2022 — reportedly began construction of a warehousing complex on a 576.7k sqm parcel south of Jeddah in 1Q 2023. The Jeddah park is slated to be operational in 1Q 2025. Under the agreement with Saudi Arabia’s State Properties General Administration (SPGA), Agility has the right to operate the park for 25 years.
Warehousing has been booming in the Kingdom: Rents for warehousing facilities in Saudi Arabia continued to rise in 1H 2024 on the back of rising demand. Riyadh’s warehouse and logistics capacity has grown to 28 mn sqm over the past 12 months, with most of the new facilities located in the Industrial Gate City (IGC), while Jeddah’s capacity has grown to 19.6 mn sqm, driven by key projects including Maersk’s logistics park, and Aramex’s warehouse at Jeddah Islamic Port. The Dammam Metropolitan Area’s industrial and logistics infrastructure supply remain “relatively unchanged due to a lack of major completions” over the past year, Knight Frank says.
