DHL Commits $150 Million for Landmark Logistics Hub in Saudi Arabia
Global logistics provider to build a 78,000-square-metre facility in Riyadh, reinforcing Saudi Arabia’s Vision 2030 trade hub ambitions
DHL Supply Chain has announced a €130 million (approximately US$150 million) investment to establish a new logistics hub in Riyadh’s Special Integrated Logistics Zone, adjacent to King Khalid International Airport.
Construction is slated to commence in 2026 with the facility expected to be operational in 2027.
The 78,000-square-metre warehouse will serve a range of sectors — including technology, e-commerce, automotive and manufacturing — and is designed with a bonded customs corridor to expedite freight clearance.
Orkun Saruhanoglu, CEO of DHL Supply Chain for the Middle East and Africa, said the Saudi market has become the company’s fastest-growing region and that the Riyadh hub is “just the first step” of a broader €500 million Middle East investment plan.
The expansion is firmly aligned with Saudi Arabia’s Vision 2030 agenda, which designates logistics as a key pillar of economic diversification and aims to establish the Kingdom as a global trade gateway linking Asia, Europe and Africa.
Saudi authorities have relaxed foreign-investment regimes and enhanced infrastructure incentives to attract multinationals beyond the energy sector.
By locating in the Special Integrated Logistics Zone next to the airport, DHL will benefit from accelerated customs processing and proximity to air freight links.
The facility is expected to support regional distribution, manufacturing-adjacent logistics and global supply-chain integration.
DHL said it may roll out subsequent phases of expansion in Saudi Arabia as the local market matures.
Industry observers note that the investment signals not only DHL’s confidence in the Gulf logistics corridor but also underscores Saudi Arabia’s growing appeal as a fulcrum for re-routing trade flows outside traditional chokepoints.
As global supply-chain pressure mounts, the Riyadh hub could help position the Kingdom as a strategic node for manufacturers and e-commerce firms seeking agile regional distribution.
With work slated to begin next year and first operations expected in 2027, the project will serve as a high-visibility example of public-private infrastructure collaboration under Saudi Arabia’s economic transformation strategy.
Construction is slated to commence in 2026 with the facility expected to be operational in 2027.
The 78,000-square-metre warehouse will serve a range of sectors — including technology, e-commerce, automotive and manufacturing — and is designed with a bonded customs corridor to expedite freight clearance.
Orkun Saruhanoglu, CEO of DHL Supply Chain for the Middle East and Africa, said the Saudi market has become the company’s fastest-growing region and that the Riyadh hub is “just the first step” of a broader €500 million Middle East investment plan.
The expansion is firmly aligned with Saudi Arabia’s Vision 2030 agenda, which designates logistics as a key pillar of economic diversification and aims to establish the Kingdom as a global trade gateway linking Asia, Europe and Africa.
Saudi authorities have relaxed foreign-investment regimes and enhanced infrastructure incentives to attract multinationals beyond the energy sector.
By locating in the Special Integrated Logistics Zone next to the airport, DHL will benefit from accelerated customs processing and proximity to air freight links.
The facility is expected to support regional distribution, manufacturing-adjacent logistics and global supply-chain integration.
DHL said it may roll out subsequent phases of expansion in Saudi Arabia as the local market matures.
Industry observers note that the investment signals not only DHL’s confidence in the Gulf logistics corridor but also underscores Saudi Arabia’s growing appeal as a fulcrum for re-routing trade flows outside traditional chokepoints.
As global supply-chain pressure mounts, the Riyadh hub could help position the Kingdom as a strategic node for manufacturers and e-commerce firms seeking agile regional distribution.
With work slated to begin next year and first operations expected in 2027, the project will serve as a high-visibility example of public-private infrastructure collaboration under Saudi Arabia’s economic transformation strategy.
