Supply chain services company, Agility, is investing €166.9 million into building a new large logistics park for storage and distribution near Jeddah, Saudi Arabia.
The project is part of a land-concession agreement announced by Saudi Arabia’s State Properties General Administration (SPGA), which will see the construction of a modern warehousing complex on a 576,760-sqaure metre parcel south of Jeddah, starting in Q1 2023.
The announcement comes days after the Saudi Arabian Government unveiled a sweeping plan to transform the Kingdom into a global logistics centre as part of Saudi Arabia’s Global Supply Chain Resilience Initiative, which is intended to attract €11.3 billion in fresh investment during its first two years.
Under terms of its agreement with SPGA, Agility will have the right to operate the park for 25 years.
Governor of the State Properties General Administration, Ihsan Bafakih, said initiatives such as the Agility facility in Jeddah offer an opportunity to enhance the contribution of the country’s real estate assets to GDP, while increasing the value of the government-held property, developed infrastructure and sustainable buildings.
“This step will help the SPGA pursue and achieve its strategic objective of efficient management of its real estate assets in a way that maximises the benefits for the development of the economy,” he said.
“The SPGA is studying its real estate portfolio and working towards transforming its assets into lucrative investment opportunities by providing suitable property for sustainable, pioneering projects with private-sector partners.”
Agility Logistics Parks/Global Operations CEO, Michel Saab, said the park in Jeddah will serve international and local customers in the retail, consumer goods, technology, automotive, energy and e-commerce sectors.
“Agility’s Jeddah complex will accelerate Saudi economic growth and make it easier for international and local companies to expand in the Kingdom,” he said.
“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.”
Agility Logistics Parks are secure, connected, 24/7 complexes with Grade A, international-standard warehouses designed with advanced engineering and sustainability features.
Opening of the Agility Logistics Park – Jeddah is anticipated for Q1 of 2025.