Dammam, Kingdom of Saudi Arabia – ASMO, a joint venture between Aramco and DHL Supply Chain, has partnered with Arcapita Group Holdings Limited (“Arcapita”), a global alternative investment firm, to develop a 1.4 million square meter purpose-built logistics facility in Saudi Arabia designed to support the next phase of the Kingdom’s logistics and supply chain development. The project will be delivered through a forward funding transaction, reflecting a long-term investment in national infrastructure.

Through the partnership, Arcapita will fund and retain ownership of the facility, while ASMO will develop, lease, and operate the asset under a 22-year occupational lease. The facility will include a 43,000 square meter temperature-controlled Grade-A logistics warehouse, over 3,000 square meters of offices and staff facilities, 5,300 square meters of dedicated chemical storage space, and a 1.2 million square meter open yard. The investment reflects a shared goal by the parties to develop resilient, scalable, and future-ready institutional grade logistics infrastructure in the Kingdom.

Designed for large-scale industrial operations, the facility will help boast advanced warehouse and building management systems, digital integration, automated storage and retrieval systems, robotics, adherence to globally recognized sustainability standards, including photovoltaic readiness, electrical vehicle charging, and a LEED Gold certification.

“This development reflects the strategic intent behind ASMO’s mandate and reaffirms its role in enabling resilient and future-ready supply chains”, said Salem Al Huraish, Chairman of ASMO. “By investing in long-term infrastructure and strategic partnerships, ASMO is supporting the Kingdom’s industrial ambitions and contributing to the development of integrated logistics capabilities that serve both national priorities and global markets.”

The facility represents ASMO’s first purpose-built logistics center and forms part of four planned strategic sites underpinning ASMO’s national logistics network, aligned with the National Transport and Logistics Strategy (NTLS) under Saudi Vision 2030. Once operational, it will serve Aramco, its affiliates, and other key industrial players across the Kingdom.

“ASMO’s new logistics hub at SPARK helps to strengthen Aramco’s supply chain resilience by delivering a centralized, high-efficiency facility in the heart of Saudi Arabia’s energy sector. As an anchor customer, we recognize the value of ASMO’s strategic investments in logistics infrastructure, demonstrating their ambition to delivering innovative, customer-focused solutions across the supply chain,” said Sulaiman Al Rubaian, Aramco Senior Vice President of Procurement & Supply Chain Management.

Isa Al Khalifa, Director and Head of MENA Real Estate at Arcapita, said: “This transaction builds on Arcapita’s established track record in developing and investing in Grade-A logistics and industrial assets. Combining our local expertise in Saudi Arabia with our experience in complex, forward-funded developments, we are pleased to partner with ASMO to support the development of a purpose-built facility that supports the Kingdom’s energy and industrial sectors, while securing a high-quality asset.”

Mishal Al Zughaibi, President & CEO of King Salman Energy Park (SPARK), said: “We are pleased to welcome ASMO to SPARK as part of a strategic partnership that further strengthens SPARK’s position as a premier logistics hub aligned with the Kingdom’s Vision 2030. This significant investment reflects the strong collaboration and ambition of all parties involved. SPARK’s advanced infrastructure and comprehensive services were a key factor in ASMO’s decision to establish its state-of-the-art logistics center within our park.”

Located within Saudi Arabia’s energy ecosystem, SPARK is strategically positioned between Dammam Seaport, Aramco’s Abqaiq facilities, and Al Hasa, enabling direct connectivity across the Kingdom’s energy and industrial network. The site supports integrated operations through modern infrastructure and digital readiness and has attracted more than 70 investors from 16 countries, with Phase One infrastructure representing a total investment of $1.6 billion.

Contacts
ASMO
Bashayir Al Barrak
bashayir.albarrak@asmo.com

Fleishman (OMC)
ronak.thakkar@omc.com 

Arcapita
Tariq Hayat
thayat@arcapita.com

Brunswick Group
Mira Kest
arcapita@brunswickgroup.com

About ASMO

We are ASMO. Our mission is to provide reliable, world-class procurement and end-to-end supply chain services that create value for companies in the energy, chemical, and industrial sectors across Saudi Arabia and the wider MENA region.

With a focus on efficiency, innovation, and cost optimization, ASMO delivers streamlined and sustainable supply chain solutions. Its expertise spans materials procurement, inventory management, logistics, reverse logistics, and warehousing, supported by advanced digital and operational technologies.

As a contributor to Saudi Arabia’s Vision 2030, ASMO supports economic diversification and resilience by advancing localization and building long-term strategic partnerships.

To learn more, please visit www.asmo.com

About Arcapita

Arcapita is a global alternative investments firm focused on private equity and real estate, with a track record of over 30 years and a total transaction value of more than $32 billion. Arcapita has offices in the US, UK, Saudi Arabia, UAE, Singapore, as well as affiliated offices in Bahrain.

To learn more, please visit www.arcapita.com

About SPARK:

King Salman Energy Park (SPARK) is a leading industrial ecosystem with sustainability at its core, connecting the world to opportunities in the Saudi energy sector and beyond. As a national Saudi megaproject proudly driving socio-economic impact locally and globally, SPARK is simultaneously catalyzing the Kingdom’s role in the global energy transition while offering a world-class ecosystem in the heart of the energy market for investors and tenants.

To learn more, please visit www.spark.sa