DHL to Invest $150 Million in Integrated Logistics Hub in Riyadh
DHL Supply Chain has announced plans to invest €130 million ($150 million) in developing a fully integrated logistics hub in Riyadh, Saudi Arabia, according to Bloomberg. This strategic move highlights the company’s confidence in Saudi Arabia’s ambitious plans to transform into a key trade and logistics hub connecting Asia, Europe, and Africa.
The new logistics facility will span 78,000 square meters within the Integrated Logistics Zone adjacent to King Khalid International Airport. Construction is set to begin next year, with the facility scheduled to open in 2027, as stated by Orkun Saruhanoglu, CEO of DHL Supply Chain for the Middle East and Africa.
This investment is part of DHL Group’s broader plan to allocate €500 million in the Middle East, targeting the fastest-growing sectors in the Kingdom, including technology, e-commerce, and automotive industries.
According to Saruhanoglu, Saudi Arabia has emerged as DHL’s fastest-growing market in the region, and the new hub will support domestic and regional trade, while providing space for manufacturing and distribution operations. A dedicated customs corridor linking the hub to King Khalid International Airport is expected to significantly reduce customs clearance times, facilitating global companies in shifting regional distribution operations to Saudi Arabia.
DHL already maintains a partnership with Saudi Aramco through the joint venture “ASMO”, and is exploring additional expansion opportunities in the Kingdom, though further details have not yet been disclosed.
