Chalhoub Group to Operate from ‘Riyadh Integrated' Logistics Zone

Chalhoub Group to Operate from ‘Riyadh Integrated' Logistics Zone

Issued license by General Authority for Civil Aviation in Saudi Arabia

The General Authority for Civil Aviation in Saudi Arabia has today issued a license to the Chalhoub Group to operate at Riyadh Integrated – the Kingdom’s first Special Integrated Logistics Zone.

The Special Integrated Logistics Zone was launched in October 2022 in Riyadh by HE the Minister of Transport & Logistics and the General Authority for Civil Aviation (GACA).

The zone is truly integrated, with a value proposition that has been developed alongside its first batch of investors.

The strategically located special integrated logistics zone will serve billions of potential customers in easy reach in Africa, Asia and Europe and help to significantly increase Saudi’s cargo capacity to more than 4.5 million tonnes per annum.

It will also strengthen Saudi Arabia’s competitive position as the largest, fastest growing and leading trading nation in the Middle East, continuing Vision 2030’s mission to connect the Kingdom to the world.

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Set to open in mid-2025, the Chalhoub Group’s fulfilment centre at Riyadh Integrated will serve as a flagship centre for the region. 

Once operational, the state-of-the-art facility will also reduce lead time to market and strengthen last mile deployment whilst enabling sustainable growth through enhanced customer service by utilising advanced automation and technological solutions.

Covering a surface area of 40,000 square metres, with a built-up area of up to 24,000 square metres, the fulfilment centre is expected to quadruple the Chalhoub Group’s fulfilment capacity to service the region, create an estimated 200 new job opportunities.

Commenting on this announcement, GACA President Al Duailej said: I would like to congratulate the Chalhoub Group on issuance of a license to operate at Riyadh’s Special Integrated Logistics Zone and we look forward to working together towards the successful operation of their fulfilment centre in 2025.

“Riyadh Integrated is a testimony to the Saudi Aviation Strategy under Vision 2030, positioning the Kingdom as a global logistics hub connecting three continents, attracting the largest companies in the world, like the Chalhoub Group, to the Kingdom as our logistics sector is transformed.

“As a vital enabler for Saudi Arabia’s logistics sector, the Special Integrated Logistics Zone offers a unique value proposition to multi-nationals based on enhanced fiscal and regulatory incentives.

"It will strengthen Saudi Arabia’s position as the largest, fastest growing market and leading strategic trading nation in the Middle East and continue Vision 2030’s mission to connect the Kingdom to the world.”

Patrick Chalhoub, Group President at Chalhoub Group said: “At Chalhoub Group, our plans to launch a new state-of-the-art facility at Special Integrated Logistics Zone underlines our support for the Kingdom’s Vision 2030, the Saudi Aviation Strategy and the Kingdom’s drive to increase job localisation.

“As Riyadh continues its upward trajectory and grows in size and ambition, our new fulfilment centre is reflective of our commitment to further developing and strengthening our operations to meet the growing demands of our customers across Saudi Arabia, while supporting the Kingdom’s dynamic and evolving business and technology landscape.”

The Chalhoub Group is the second investor at Riyadh Integrated, following the global technology giant Apple – who were confirmed as the first investor at Riyadh Integrated in October 2022.

The Chalhoub Group’s fulfilment centre has been strategically designed to streamline its practices and optimise efficiency through technology, digitalisation and sustainable developments to ensure a competitive edge.

The new facility will be designed and built on international green building best practices by using sustainable construction materials, incorporating renewable energy sources, and increasing overall natural greenery landscaping to minimise its carbon footprint.

As part of the wider transformation of the Kingdom’s logistics sector, by 2030 Saudi Arabia is significantly increasing its cargo capacity to more than 4.5 million tons per annum and increasing the contribution of the transport and logistics sector to national gross domestic product from the current six per cent to 10%.

This will help to fuel business growth, attract inward investment, and increase the sector’s non-oil revenues to about $12 billion a year by 2030.

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Transport and Logistics ME