LogiPoint, Al Rajhi Capital Unveil US$1.33 Billion South Jeddah Logistics Mega Hub

LogiPoint has partnered with Al Rajhi Capital to develop a major logistics and industrial park in South Jeddah, with a total planned investment of around US$1.33 billion, reinforcing Saudi Arabia’s ambitions to become a leading global logistics hub.

The two companies have signed an agreement to establish a dedicated investment fund to finance the project, which will be developed as the South Jeddah Logistics and Industrial Park.

The development will span approximately 1.9 million square metres and is expected to deliver around 1.5 million square metres of leasable space, targeting manufacturers, logistics providers, distributors and regional supply chain operators.

Located near key industrial zones in South Jeddah, the park is designed as an integrated logistics ecosystem. Plans include a mix of dry warehousing, cold storage and temperature-controlled facilities, alongside light industrial units and build-to-suit infrastructure tailored for major tenants.

Under the partnership structure, Al Rajhi Capital will act as the fund manager, while LogiPoint will take on the role of developer and asset manager, leveraging its experience in logistics real estate and bonded zones across the Kingdom.

Construction is expected to begin in 2027, with the project likely to be delivered in phases to align with tenant demand and market growth.

The initiative comes amid rising demand for Grade-A logistics infrastructure in Saudi Arabia, driven by rapid e-commerce growth, industrial expansion and increasing regional trade flows.

The Kingdom has been investing heavily in transport and logistics infrastructure as part of its broader economic diversification strategy under Vision 2030, aiming to position itself as a central gateway connecting Asia, Europe and Africa.

Large-scale developments such as the South Jeddah park are critical to addressing supply constraints in modern warehousing and supporting the localisation of manufacturing and distribution networks.

Executives from both firms said the collaboration combines institutional investment capabilities with sector-specific development expertise, creating a platform to deliver long-term value while strengthening Saudi Arabia’s logistics competitiveness on the global stage.