DHL Supply Chain to build $149.9mn logistics hub in Saudi Arabia

DHL Supply Chain has announced a US$149.89 million (SAR561.5 million) investment to establish a major logistics and distribution hub at Saudi Arabia’s Special Integrated Logistics Zone (SILZ) in Riyadh.

The project follows a land lease agreement signed with SILZ and underscores DHL’s commitment to supporting the Kingdom’s Vision 2030 ambitions to become a leading global logistics centre.

The 78,000-square-metre site will include 53,000 sqm of advanced multi-user warehouse space designed to serve sectors such as technology, retail and consumer goods, automotive, energy, and e-commerce. Construction is set to begin in the first quarter of 2026, with completion expected by mid-2027.

The facility is part of DHL Group’s €500 million investment programme for the Middle East through 2030.

“The Middle East is one of the fastest-growing logistics regions globally, and Saudi Arabia sits at the centre 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 multi-user facility at SILZ will not only accelerate supply chain resilience and connectivity but also enable global businesses to migrate their distribution centres to the Kingdom.”

Dr. Fadi Al-Buhairan, CEO of the Special Integrated Logistics Zone Company, said: “Our vision has always been to build the next generation of smart logistics infrastructure. Our partnership with DHL combines SILZ’s premium facilities with DHL’s global network. Having DHL as our anchor logistics tenant marks a major milestone and reflects strong confidence in our regulatory environment.”

Located just eight kilometres from King Khalid International Airport and linked by a bonded corridor, the facility will provide direct access to global air routes, reducing lead times and improving the flow of imports and exports.

Mostapha Mokdad, Managing Director of DHL Supply Chain KSA, added: “In line with the Kingdom’s Vision 2030, DHL Supply Chain has prioritised establishing Saudi Arabia as a global logistics hub. Our site at SILZ supports our global customers in serving the Kingdom and the wider Middle East and Africa region.”

The agreement represents a significant step in DHL’s long-term expansion in Saudi Arabia, with the new hub expected to create jobs and enhance national supply chain infrastructure while advancing the Kingdom’s logistics transformation.