Amazon Doubles Storage and Fulfillment Capacity in Saudi Arabia
As the Kingdom accelerates towards a digital economy with a growing e-commerce market, Amazon’s new Fulfillment Center in Riyadh will double total storage capacity in Saudi Arabia.
The Chief Executive Officer of the National Industrial Development and Logistics Program (NIDLP), Eng. Suliman Almazroua and delegations from the Ministry of Transport and Logistics Services, the Transport General Authority, and Monsha’at – Saudi Arabia’s General Authority for Small and Medium Enterprises today witnessed the inauguration of Amazon’s latest Fulfillment Center in Riyadh, Saudi Arabia.
Following the ceremony, Abdo Chlala, Country Manager, Amazon Saudi Arabia, along with Prashant Saran, Director of Operations, Amazon Middle East and North Africa (MENA) and Dr. Hatem Samman, Public Policy Lead, Amazon Saudi Arabia, guided the dignitaries on a tour of the facility.
Eng. Suliman Almazroua commented: “Saudi Arabia has made remarkable progress in developing world-class infrastructure and business-enabling policies that aim to place the Kingdom at the forefront of investor attractiveness.
"Amazon’s expansion supports Saudi Arabia’s logistics sector - one of NIDLP’s four key sectors – bringing the latest innovations and technologies in ecommerce operations to the country.
"The new Fulfillment Center in Riyadh will further unlock the value of the Kingdom’s resources by empowering local startups and entrepreneurs with improved global connectivity and access to new markets.”
The facility spans 390,000 square feet across five floors – approximately the size of five football fields.
The center will be able to store over 9 million products, enabling Amazon to delight customers with a wider selection of products across electronics, appliances, groceries, fashion, books, and more.
H.E. Eng. Saud bin Rashid Al-Askar, the Deputy Governor of Saudi Standards, Metrology and Quality Organization (SASO), said: “As Saudi Arabia progresses towards sustainable development in tandem with regional and international markets, we affirm the company’s keenness, in cooperation with other sectors, to ensure consumer safety by conforming its products received through e-commerce.
"We are happy to see Amazon’s expansion in the Kingdom as the company continues its efforts to bring global standards and processes to the ecommerce sector in Saudi Arabia.”
Abdo Chlala, Country Manager, Amazon Saudi Arabia, said: “Our expansion and investment in our network underscores our commitment to delivering an enhanced shopping experience for customers.
"Providing Saudi businesses with greater access to Amazon’s expertise in fulfillment, reliable countrywide delivery, and customer service, and unlocking opportunities for local talent.
"Led by a diverse cohort of talented Saudi nationals in managerial positions, we expect this Fulfillment Center to support the Kingdom’s digital economy goals.”
In support of Saudi Arabia’s rising entrepreneurship culture and rapid development of small and medium enterprises (SMEs), the enhanced capacity will empower independent sellers to scale their businesses online.
In order to reach a wider customer base faster and more efficiently, Saudi sellers can take advantage of the Fulfilled by Amazon (FBA) offering that allows them to store, pick, pack and ship customer orders through Amazon.
The company has been working closely with Monsha’at, Saudi Arabia’s General Authority for Small and Medium Enterprises, to empower this segment of the economy, with an aim to host 40,000 Saudi sellers by 2025 on Amazon.sa.
Prashant Saran, Director of Operations for Amazon MENA, said, “Technology is at the heart of our operations, and with the opening of our most advanced Fulfillment Center in Saudi Arabia, we are all set to bring an enhanced fulfillment offering to Saudi sellers.
"At Amazon, we relentlessly innovate on behalf of our customers and continue to strengthen our operations with state-of-the-art technology and global processes and programs in order to ensure a fast, convenient and reliable shopping experience.”
The new Fulfillment Center is Amazon’s most advanced in Saudi Arabia and brings 25+ years of global logistics technology and innovation in line with the Vision 2030 goal of establishing the Kingdom as the go-to logistics hub for the region.
The new facility incorporates innovative solutions powered by Artificial Intelligence and Machine Learning in its operations and more than two and a half kilometers of conveyance equipment to ensure seamless fulfillment operations.
To ensure local talent is able to grow and advance their careers, Amazon offers an array of training, upskilling and mentoring programs that empower employees to reach their full potential.
Today, Saudi women at the center occupy a variety of leadership roles within operations, human resources, learning and development, and information technology, among other departments. Further, the facility provides various accommodations for people with disabilities that aim to ensure their full and active participation.
Amazon continues its relentless focus on the safety and well-being of its employees, deploying cutting-edge technology to assist employees and keep them safe while delivering for customers.
As part of Amazon’s commitment to be net-zero carbon across its business by 2040, the facility is powered 100% by electricity, including its heating and hot water systems, avoiding the use of fossil fuel combustibles and with energy efficiency as a top priority.
Heating, ventilation and air conditioning (HVAC) is controlled by a building management system that ensures a comfortable working environment for employees while reducing unnecessary energy consumption.
In addition, LED lighting adjusts according to natural light availability and building occupancy, and indoor air quality is constantly monitored.
Since the launch of Amazon.sa in 2020, the company has continued to invest in Saudi Arabia, supporting the Kingdom’s vision to accelerate a digitalized and diversified future.
Today, Amazon Operations’ network in the country comprises 2 Fulfillment Centers, 3 Sort Centers, a footprint of over 25 owned and third-party delivery stations, and a network of small and medium businesses working as Delivery Service Partners across Saudi Arabia.