Agility Invests SAR 611 million to Build Jeddah Logistics Park in Saudi Arabia

State-of-the-art warehousing complex boosts Saudi Arabia’s aim to be global logistics center

RIYADH– NOV. 3, 2022 Agility, a supply chain services, infrastructure and innovation company, said it will build a large logistics park for storage and distribution near Jeddah as part of a land-concession agreement announced by Saudi Arabia’s State Properties General Administration (SPGA)

The project at Jeddah- Al Mahjar calls for construction of a modern warehousing complex on a 576,760 SQM parcel south of Jeddah, starting in Q1 2023. Opening of the Agility Logistics Park – Jeddah is anticipated in Q1 2025.

Under terms of its agreement with SPGA, Agility will invest 611 million SAR (USD 163 million) to build the park and have the right to operate it for 25 years. Agility currently operates the country’s most advanced logistics parks — Agility Logistics Parks in Riyadh (870,000 SQM) and Dammam (200,000 SQM).

The announcement comes days after the Saudi government unveiled a sweeping plan to transform the Kingdom into a global logistics center as part of Saudi Arabia’s broad Vision 2030 strategy Saudi Arabia’s Global Supply Chain Resilience Initiative (GSCRI) is intended to attract $11 billion in fresh investment in its first two years and position the country as a key link in global supply chains through development of logistics and industrial infrastructure, economic cities, and green energy, innovation and manufacturing.

His Excellency, Governor of the State Properties General Administration Mr. Ihsan Bafakih said: “This step will help the SPGA pursue and achieve its strategic objective of efficient management of its real estate assets in a way that maximizes the benefits for the development of the economy. The SPGA is studying its real estate portfolio and working towards transforming its assets into lucrative investment opportunities by providing suitable property for sustainable, pioneering projects with private-sector partners.”

Bafakih said initiatives such as the Agility facility in Jeddah offer an opportunity to enhance the contribution of the country’s real estate assets to GDP while increasing the value of the government-held property, developed infrastructure and sustainable buildings.

Agility said the park in Jeddah will serve international and local customers in the retail, consumer goods, technology, automotive, energy and e-commerce sectors.

“Agility’s Jeddah complex will accelerate Saudi economic growth and make it easier for international and local companies to expand in the Kingdom,” said Michel Saab, CEO of Agility Logistics Parks/Global Operations. “Ultra-efficient warehousing and distribution are a huge competitive advantage. Companies operating from these parks shorten their time-to-market, reduce cost and risk, increase inventory turns and boost productivity.”

Agility Logistics Parks are secure, connected, 24/7 complexes with Grade A, international-standard warehouses designed with advanced engineering and sustainability features. Agility recently received post-construction EDGE Advanced certification (Excellence in Design for Greater Efficiencies) for a warehouse at its Riyadh park. EDGE Advanced buildings are “zero-carbon ready” structures that are at least 40% more energy efficient than others in the market.

The contract was signed by Mr. Hamza Al-Askar, Deputy State Properties General Administration Representative, and Mr. Maher Jaber Al Thabit, Vice President of Agility Logistics Parks, at the SPGA headquarters in Riyadh.

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About Agility

Agility is a global leader in supply chain services, infrastructure and innovation. With a workforce of 50,000+ across its group of companies, Agility has a footprint in six continents and is a pioneer in emerging markets. Agility owns and operates businesses that include the world’s largest aviation services company; the market leader in industrial warehousing and logistics parks in the Middle East, South Asia, and Africa; a commercial real estate business developing a $1.2 billion mega-mall in the UAE; a liquid fuel logistics business; and companies specializing in customs digitization, remote infrastructure services, e-commerce enablement, digital logistics, and more. Agility invests in innovation, sustainability and resilience, and owns stakes in listed and non-listed companies that are reshaping logistics and transportation, energy, e-commerce, and other industries. Agility is a publicly-listed company in Kuwait and Dubai.

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 Sabrina Mundy
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