Riyadh, Saudi Arabia – Two Saudi Arabia-based companies, Sal Logistics Services and Sela, have signed an agreement to develop a large-scale logistics hub in Falcon City, north of Riyadh. The project, known as the Sal Logistics Zone, is estimated to cost approximately SR4 billion ($1 billion) and will span over 1.5 million square meters.
A signing ceremony was held in Riyadh earlier this week, attended by Transport and Logistics Services Minister Saleh Bin Nasser Al-Jasser, Investment Minister Khalid Bin Abdulaziz Al-Falih, Sal Logistics Services CEO Omar Bin Talal Hariri, and Sela Managing Director Rakan Al-Harthi.
The new logistics center is intended to meet growing demand for customized warehousing solutions in close proximity to King Khalid International Airport and Riyadh Metro. It aligns with Saudi Arabia’s Vision 2030 and the National Transport & Logistics Strategy, which aim to strengthen the country’s logistics infrastructure and position it as a global trade hub.
Industry analysts forecast that Saudi Arabia’s construction sector will experience an annual average growth rate of 5.2% between 2025 and 2028, driven by investments in transport, electricity, housing, and tourism infrastructure. The kingdom’s industrial sector is also projected to expand by 3.3% during this period, supported by investments in manufacturing, logistics, chemicals, and pharmaceuticals development.
The logistics hub is expected to play a key role in enhancing supply chain efficiency within the region, contributing to Saudi Arabia’s broader economic diversification and infrastructure development goals.
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