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Kuwait-based Agility, one of the Gulf region’s largest logistics companies, is investing SAR611 million ($162.6 million) to build a logistics park in Saudi Arabia.
The project, which is part of a land-concession agreement with Saudi Arabia’s State Properties General Administration (SPGA), includes the construction of a modern warehousing complex on a 576,760-square-metre area in Jeddah-Al Mahjar.
Work on the park will start in the first quarter of 2023, according to a statement on Thursday. It is scheduled to open in the first quarter of 2025 and will be home to Grade A, international-standard warehouses that will cater to the storage and distribution needs of companies.
Agility revealed details of the project after the Saudi government announced plans to transform the kingdom into a global logistics centre as part of the kingdom’s Vision 2030 strategy. Through Saudi Arabia’s Global Chain Resilience Initiative, the kingdom looks to attract $11 billion in fresh investments during the first two years.
According to Michel Saab, CEO of Agility Logistics Parks/Global Operations, the upcoming complex in Saudi Arabia will make it easier for international and local businesses to expand in Saudi Arabia.
“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, Saab said.
(Reporting by Cleofe Maceda; editing by Seban Scaria)
