Saudi Arabia’s logistics sector continues to strengthen, supported by strong industrial growth, rising investor confidence, strategic port investments, and progress under Vision 2030.
The Kingdom’s industrial base reached around 13,660 facilities in April 2026, up from 12,289 a year earlier, reflecting continued expansion in manufacturing and logistics activity. Demand for modern industrial and logistics facilities remains strong, with occupancy rates exceeding 90% in Riyadh, Jeddah, and the Dammam Metropolitan Area during Q2 2026.
Rental markets also recorded steady growth, supported by limited availability of high-quality logistics space. Average rents increased 4.8% in Jeddah, 3.9% in Riyadh, and 6.9% in the Dammam Metropolitan Area, highlighting sustained demand for strategically located facilities.
A major development during the quarter was the rerouting of regional cargo toward Saudi Arabia’s western ports, particularly Jeddah Islamic Port and King Abdullah Port. The shift is strengthening the role of the Red Sea corridor and could help Saudi Arabia retain a greater share of regional trade flows over the longer term.
With expanding industrial capacity, strong port connectivity, and continued investment in logistics infrastructure, Saudi Arabia is building a more resilient and diversified trade network. The outlook remains positive, with demand for modern logistics facilities expected to stay strong as the Kingdom advances its economic diversification strategy.
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