Saudi warehousing industry exhibits healthy growth - Report

Riyadh -  The warehousing industry in Saudi Arabia is witnessing healthy growth, mainly driven by technological advances. The rise of automation and value-added services to attain competitive differentiation is revolutionising the way warehouses operate and paving the way for a dynamic future worldwide.

In its latest in-depth white paper, Colliers International examined the key players influencing the evolution of Saudi Arabia’s warehousing industry, combining real data with market sentiment to capture the current and future impact of the coronavirus (COVID-19), according to a recent press release.

The report spotlighted four key drivers to have a potential impact on all sectors of the economy, namely government’s increased focus on non-oil sectors, embracing technological advances, implementation of omnichannel networks, and supply chain revisions. These drivers will eventually reflect structural changes in the storage solutions industry as the market continues to develop.

Given its diversification efforts, Saudi Arabia’s non-oil economies will thrive. A likely influx of foreign direct investments (FDIs), coupled with investments in infrastructure and logistics capabilities and capacities will provide new opportunities, the report said.

In this regard, managing director at Colliers International KSA, Imad Damrah, said, “Significant financial impact, both positive and negative, is expected while business operators continue to evaluate different strategies to cope with the current realities of the pandemic impact and identifying potential within the new trends."