Saudi Arabia’s logistics and industrial landscape is set for a significant transformation following a landmark partnership between Al Rajhi Capital and LogiPoint to develop one of the Kingdom’s largest integrated logistics and industrial destinations.

The two companies have signed a Memorandum of Understanding (MoU) to establish a dedicated investment fund for the South Jeddah Logistics and Industrial Park, a SAR5 billion ($1.3 billion) project that underscores the growing momentum behind Saudi Arabia’s Vision 2030 ambitions.

Strategically positioned adjacent to Modon’s Industrial City One in South Jeddah, the development is expected to emerge as a key logistics gateway, strengthening the Kingdom’s role as a regional and global supply chain hub while supporting broader economic diversification objectives.

Building a Next-Generation Industrial Ecosystem

Spanning an impressive 1.9 million square metres, the South Jeddah Logistics and Industrial Park will deliver approximately 1.5 million square metres of leasable space tailored to the evolving requirements of manufacturers, logistics providers, distributors, and regional supply chain operators.

LogiPoint … powering Saudi Arabia’s logistics ambitions.

Designed as a comprehensive mixed-use industrial destination, the master-planned development will feature a diverse portfolio of assets, including dry warehouses, cold-storage and temperature-controlled facilities, Light Industrial Units (LIUs), and staff accommodation. The project will also include purpose-built Build-to-Demand (BTD) and Build-to-Suit (BTS) facilities, catering to the specialised needs of anchor tenants and leading regional and international businesses.

Together, these components will create an integrated logistics ecosystem capable of supporting a wide range of industrial and value-added operations, while providing businesses with the flexibility and scalability required in today’s fast-changing market environment.

Combining Investment Strength with Logistics Expertise

Under the agreement, Al Rajhi Capital will assume the role of Fund Manager, while LogiPoint will serve as Asset and Development Manager. The partnership brings together the financial expertise of one of Saudi Arabia’s leading investment institutions with the development capabilities of a major logistics real estate specialist.

Al Rajhi Capital offers a broad portfolio of financial services and investment solutions, including asset management, investment banking, brokerage, and wealth management. LogiPoint, meanwhile, has established itself as a leading developer and operator of logistics parks, bonded logistics facilities, Grade-A warehouses, and customised build-to-suit developments across Saudi Arabia.

According to Al Rajhi Capital, all preliminary approvals for the project have already been secured. Final agreements are expected to be completed by the end of the year, with construction scheduled to commence during the first half of 2027.

The project will be delivered through a phased development model, initially focusing on purpose-built facilities for anchor tenants. This approach is intended to align infrastructure investments with market demand while creating a strong foundation for long-term growth. The development is also being planned in close coordination with Modon’s long-term strategy for the surrounding industrial area.

Supporting the Kingdom’s Logistics Ambitions

Commenting on the partnership, Farooq Shaikh, Chief Executive Officer of LogiPoint, highlighted the rapid evolution of Saudi Arabia’s logistics sector and the increasing demand for integrated industrial developments.

“Saudi Arabia’s logistics sector is entering a new phase of growth, where customers increasingly require integrated developments that combine modern infrastructure, operational flexibility, and long-term scalability,” he said.

Shaikh noted that the South Jeddah Logistics and Industrial Park has been specifically designed to meet these emerging market requirements.

“Through our partnership with Al Rajhi Capital, we are bringing together institutional investment and logistics expertise to deliver infrastructure that supports industrial growth, attracts new investment, and strengthens the Kingdom’s position as a regional logistics hub,” he added.

Hussam Al Basrawi, Chief Executive Officer of Al Rajhi Capital, described the initiative as a reflection of the company’s commitment to enabling strategic investments that contribute to the Kingdom’s economic development.

“By combining our investment expertise with LogiPoint’s development capabilities, we aim to deliver sustainable long-term value for our investors while supporting Saudi Arabia’s Vision 2030 and strengthening the Kingdom’s logistics ecosystem,” he said.

A Strategic Addition to Saudi Arabia’s Infrastructure Landscape

The ambitious South Jeddah project arrives at a time when Saudi Arabia is accelerating investment in logistics infrastructure to strengthen supply chain resilience, attract industrial investment, and increase non-oil economic activity.

LogiPoint already operates Saudi Arabia’s first and largest Bonded and Re-Export Zone at Jeddah Islamic Port, providing businesses with streamlined cargo management and enhanced access to regional markets. The company’s experience in developing logistics infrastructure, combined with Al Rajhi Capital’s investment capabilities, is expected to position the South Jeddah Logistics and Industrial Park as a major catalyst for industrial growth in the Western Province.

As the Kingdom continues to build its credentials as a global logistics powerhouse, developments of this scale are expected to play a pivotal role in shaping the next chapter of Saudi Arabia’s industrial and economic transformation.