$1.3 Billion South Jeddah Logistics And Industrial Park Moves Forward

Dubai (PlantAndEquipment.com) - Al Rajhi Capital and LogiPoint have agreed to form an investment vehicle to construct the SAR5 billion ($1.3 billion) South Jeddah Logistics and Industrial Park, one of Saudi Arabia's biggest planned integrated logistics and industrial development projects.

The project, located close to MODON's First Industrial City in South Jeddah, would encompass 1.9 million square meters, with about 1.5 million square meters of leasable space aimed at manufacturers, logistics businesses, distributors, and regional supply chain operators.

The project will feature dry warehouses, cold and temperature-controlled storage, light industrial units, and staff quarters. Major local and international tenants will also benefit from build-to-suit and built-to-demand capabilities.

Al Rajhi Capital will administer the investment fund, while LogiPoint will handle development and asset management.

Preliminary clearances have already been granted, with final agreements expected by the end of 2026. Groundbreaking is scheduled during the first half of 2027, with development moving forward in stages and initially focused on purpose-built facilities for major tenants.

The project contributes to Saudi Arabia's fast growth of logistics, storage, and industrial infrastructure, which is driven by Vision 2030 and the Kingdom's ambition to become a major regional and international supply chain center.

LogiPoint already runs the Bonded and Re-Export Zone at Jeddah Islamic Port, providing the firm a strong foothold in one of Saudi Arabia's most vital logistical hubs.