Saudi Arabia’s Logistics Sector Strengthens as New Parks and Infrastructure Projects Advance

Saudi Arabia’s logistics and warehouse market has maintained strong momentum through the third quarter of 2025, fuelled by sustained demand from e-commerce, manufacturing and distribution sectors, and a wave of new infrastructure projects across key trade hubs.

Industry data show that rental growth in prime industrial zones of Riyadh, Jeddah, and Dammam remains among the fastest in the region, supported by limited availability of modern space and rising requirements from retailers, 3PL providers, and manufacturers. The capital continues to attract new development, highlighted by LogiPoint’s decision to establish the Al Noor Logistics Park in Riyadh—its first major project outside Jeddah—signalling developer confidence in long-term occupier demand and the shift towards Grade-A warehouse facilities.

Infrastructure expansion has also gathered pace. A new logistics corridor is now under construction to connect Jeddah Islamic Port with the Al Khomrah logistics zone, a project that will increase port throughput and ease transport bottlenecks. The corridor forms part of a wider effort to strengthen Saudi Arabia’s position as a regional trade and distribution hub by integrating maritime, road, and air freight systems.

At the corporate level, logistics operators are actively expanding their networks. SAL Saudi Logistics Services has announced new initiatives to enhance cargo handling and domestic parcel operations, including partnerships with national postal and e-commerce platforms. Analysts note that such moves reflect growing competition in last-mile delivery and temperature-controlled logistics, segments expected to outperform in the coming years.

Despite global cost pressures and cautious capital deployment, the Saudi market continues to attract investors seeking stable returns and exposure to long-term supply chain growth. With new projects coming online and regulatory reforms improving transparency, industry observers expect steady performance into 2026. The combination of infrastructure investment, technology adoption, and policy support places Saudi Arabia’s logistics sector at the centre of the Kingdom’s economic diversification agenda.