UAE’s Chalhoub Group to open flagship distribution center at KSA’s first special logistics zone
UAE-headquartered luxury retail distribution firm Chalhoub Group has obtained a license to operate a fulfillment center at Saudi Arabia’s first special integrated logistics zone, as the company’s flagship facility looks to reduce lead time and strengthen last-mile deployment.
Saudi Arabia’s General Authority for Civil Aviation issued the license, paving the way for the company to enter into a 50-year lease agreement with Riyadh’s Special Integrated Logistics Zone, it said in a press release.
The new distribution center — which is scheduled to open in mid-2025 — will have a surface area of 35,000 sq. meters and a building area of 21,000 sq. meters.
It is projected to quadruple the Chalhoub Group’s ability to process shopping orders in the region and create around 200 direct job opportunities in the country.
Launched in October 2022, the logistics zone’s strategic location is aimed at providing firms with easy access to customers in Africa, Asia and Europe while allowing the Kingdom to increase its cargo capacity to more than 4.5 million tons per annum.
This move falls in line with the National Transport and Logistics Strategy and the National Aviation Strategy to contribute to the development and growth of the sector. It also aligns with the objective of elevating the role of the sector in supporting domestic products and advancing the national economy in accordance with the directions of Vision 2030.
“At a time when Riyadh continues its upward trajectory toward growth in size and ambition, the launch of the new distribution center in the Special Integrated Logistics Zone reflects our commitment to developing and strengthening our operations to cover the volume of the increasing demands of our customers throughout the Kingdom of Saudi Arabia,” Chalhoub Group CEO Patrick Chalhoub said.
The new distribution center will be designed and constructed using sustainable building materials and renewable energy sources, the company added.
The new distribution center — which is scheduled to open in mid-2025 — will have a surface area of 35,000 sq. meters and a building area of 21,000 sq. meters.
It is projected to quadruple the Chalhoub Group’s ability to process shopping orders in the region and create around 200 direct job opportunities in the country.
Launched in October 2022, the logistics zone’s strategic location is aimed at providing firms with easy access to customers in Africa, Asia and Europe while allowing the Kingdom to increase its cargo capacity to more than 4.5 million tons per annum.
This move falls in line with the National Transport and Logistics Strategy and the National Aviation Strategy to contribute to the development and growth of the sector. It also aligns with the objective of elevating the role of the sector in supporting domestic products and advancing the national economy in accordance with the directions of Vision 2030.
“At a time when Riyadh continues its upward trajectory toward growth in size and ambition, the launch of the new distribution center in the Special Integrated Logistics Zone reflects our commitment to developing and strengthening our operations to cover the volume of the increasing demands of our customers throughout the Kingdom of Saudi Arabia,” Chalhoub Group CEO Patrick Chalhoub said.
The new distribution center will be designed and constructed using sustainable building materials and renewable energy sources, the company added.