DHL Supply Chain is set to invest €130m (US$162m) in a new regional logistics and distribution hub at Saudi Arabia’s Special Integrated Logistics Zone (SILZ) in Riyadh, after signing a land lease agreement with SILZ.
The multi-user warehouse, occupying a 78,000m2 plot of land, will cater to diverse sectors including technology, retail and consumer, automotive, energy and e-commerce, providing tailored solutions for each industry. It will include leasehold commitments for a 26-year term.
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 €500m (US$577m) investment DHL Group has recently announced for the Middle East through 2030.
The investment is said to reinforce DHL’s commitment to Saudi Arabia’s Vision 2030, which aims to position the Kingdom as a global logistics hub.
“The Middle East is one of the fastest-growing logistics regions globally, and Saudi Arabia sits at the center of this transformation,” said Hendrik Venter, CEO of DHL Supply Chain. “Our approach is to invest ahead of demand, creating scalable infrastructure that supports high-growth sectors such as technology, e-commerce and new energy.
“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,” he added.
Dr Fadi Al-Buhairan, the CEO of SILZ, commented, “Our partnership with DHL is a fusion of SILZ Company’s premium infrastructure and DHL’s speed and global network,” adding that “the entry of a partner the size of DHL into the Riyadh Integrated ecosystem reflects confidence in our stimulating regulatory environment.”
Strategically located 8km from King Khalid International Airport and connected via a bonded corridor, the new hub benefits from proximity to global air routes. According to DHL, 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.
The agreement marks a key milestone in DHL Supply Chain’s long-term expansion in the Kingdom and reflects the alignment between the company’s growth ambitions and Saudi Arabia’s Vision 2030 objectives. The facility is expected to create new employment opportunities, contributing to local workforce development in line with Vision 2030.
Both parties will continue to collaborate closely through the construction and development phases, with operations expected to enhance regional connectivity and unlock significant long-term economic value.
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