ASMO, a joint venture between Saudi Aramco and DHL, has started construction of its first purpose-built logistics hub at King Salman Energy Park (SPARK), marking the first of three planned logistics hubs across the Kingdom.

The 1.4 million square metre (sqm) development is being delivered and funded in partnership with Arcapita, the Bahrain-based alternative investment firm said on Wednesday.

The project and the partnership with Arcapita was first announced in February 2026. 

The facility is intended to support logistics requirements for Saudi Aramco, its affiliates and customers across the energy and industrial sectors.

ASMO Chairman Salem Al Huraish said the project forms part of the company’s long-term strategy to establish an integrated logistics network across Saudi Arabia.

The project cost and completion timelines weren't disclosed but according to a February 2026 Zawya Projects report, Arcapita will fund and retain ownership of the facility, while ASMO will develop, lease, and operate the asset under a 22-year lease agreement. The report said the logistics centre will include a 43,000 sqm temperature-controlled Grade-A logistics warehouse, over 3,000 sqm of offices and staff facilities, 5,300 sqm of dedicated chemical storage space, and a 1.2 million sqm open yard.

The development will also incorporate smart technologies, fire protection systems, solar photovoltaic (PV) readiness and Electric Vehicle (EV) charging infrastructure readiness, and target LEED Gold certification, the latest Arcapita statement noted.

It said the project reflects growing demand for institutional-grade logistics and industrial real estate in Saudi Arabia as the Kingdom expands manufacturing capacity, strengthens supply chains and positions itself as a regional trade and industrial hub under Vision 2030.

By 2030, ASMO is aiming to manage and operate a total of six strategically located logistics facilities in the Kingdom, comprising three existing Saudi Aramco facilities in Riyadh, Jazan and Abqaiq and three greenfield facilities, starting with the facility in SPARK.

(Writing by Dennis Daniel; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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