ASMO, a joint venture between Aramco and DHL Supply Chain, has partnered with Bahrain-based global alternative investment firm Arcapita to develop a 1.4 million square metre (sqm) purpose-built logistics facility in King Salman Energy Park (SPARK), Eastern Province.

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 investment firm said in a press statement.

The purpose-built 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 statement didn’t disclose construction timelines or investment details but said the facility will be delivered through a forward funding transaction [wherein Aracpita, as investor, will provide the capital to fund the construction while ASMO will develop and operate the facility].

Once operational, the facility will serve Aramco, its affiliates, and other key industrial players, leveraging SPARK's location between Dammam Seaport, Aramco’s Abqaiq facilities, and Al Hasa, the statement said. 

It will incorporate advanced warehouse and building management systems, digital integration, automated storage and retrieval systems, robotics, photovoltaic readiness, electrical vehicle (EV) charging, and a LEED Gold certification.

The logistics facility will form part of four planned sites underpinning ASMO’s national logistics network, aligned with the National Transport and Logistics Strategy (NTLS) under Saudi Vision 2030, the statement noted.

A Deecember 2025 Zawya Projects report had said ASMO plans to operate six logistics facilities by 2030 with annual procurement volumes expected to exceed $8 billion.

(Writing by Dennis Daniel; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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